Economic and Financial Review - June 2019

June 2019 Economic and Financial Review DOMESTIC ECONOMIC DEVELOPMENTS

the comparable period of 2018. This deterioration in the consolidated fiscal position was largely related to developments on the capital account. A combination of increasing capital expenditure and reducing capital revenue and grants, more than offset an improved performance on the current account. On a country basis, the fiscal position of the following five member territories worsened: Antigua and Barbuda, The Commonwealth of Dominica, Montserrat, Saint Lucia and Saint Vincent and the Grenadines. Four of these countries recorded larger deficits, while Saint Lucia’s overall position deteriorated to a deficit from a surplus in the first half of the prior year. By contrast, the fiscal situation improved in the remaining three territories, which all recorded larger overall surpluses. The operations of the central governments yielded a current account surplus of $383.0m in the first six months of 2019, slightly above one of $373.8m in the corresponding period of the prior year. The expansion in the current account surplus was largely influenced by an increase in current revenue, which more than offset the rise in current expenditure. Five member territories realized current account

ECCU Exports of Bananas

'000 Tonnes/ EC$M

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2

Volume Value

Concomitant with muted inflationary conditions on the global scene, consumer prices remained subdued in the ECCU, notwithstanding a marginal increase in the overall price condition in five countries. The consumer price index (CPI) was partially influenced by a decline in the indices for housing and utilities; and fuel and light in most member territories. In general, the consumer price index declined in three countries, namely Anguilla (0.2 per cent), Grenada (0.3 per cent) and Saint Christopher (St. Kitts) and Nevis (0.9 per cent). Contrastingly, the increases in prices varied from 1.2 per cent in Saint Lucia to 1.7 per cent in Montserrat. Fiscal and Debt Developments The aggregated fiscal operations of the central governments resulted in an overall deficit of $35.5m in the first half of 2019, in contrast to an overall surplus of $67.5m in

6

Eastern Caribbean Central Bank