Economic and Financial Review - June 2019

June 2019 Economic and Financial Review DOMESTIC ECONOMIC DEVELOPMENTS

surpluses, three of which recorded improvements in their surplus positions from the previous year – Anguilla, Grenada and Saint Christopher (St. Kitts) and Nevis. Notably, the current account surplus generated by Saint Christopher (St. Kitts) and Nevis more than doubled the amount recorded in the comparable period of 2018, driving the enhancement of the overall current account balance of the ECCU. Declines were observed in the current account surpluses of The Commonwealth of Dominica ($56.7m) and Saint Lucia ($39.3m). Current revenue grew by 5.2 per cent to $2,795.4m, mirroring increases in both the tax and non-tax revenue categories. Yields from taxes, the largest share of current revenue, increased by 4.6 per cent ($95.2m) to $2,145.8m, influenced by larger intakes from six member territories, particularly Anguilla and The Commonwealth of Dominica. At the ECCU level, proceeds from all categories of taxes were up. Yields from income and profits advanced by 8.6 per cent ($38.9m) buoyed by growth in revenue from the corporation tax ($32.8m) and personal income tax ($10.0m). Collections from taxes on domestic goods and services grew by 2.6 per cent ($23.7m), driven

primarily by increases in receipts from the accommodation tax ($18.0m) and the value added tax ($12.2m). Respectively, the international trade and transactions and the property tax sub-categories yielded 2.8 per cent ($17.8m) and 23.2 per cent ($14.7m) more than last year. Non-tax revenue increased by 7.2 per cent ($43.6m) to $649.6m, largely driven by growth in receipts from the Citizenship by Investment Programmes. The improved performance from non-tax revenue was most notable in Saint Christopher (St. Kitts) and Nevis, where collections from the Citizenship by Investment Programme increased by 54.2 per cent ($111.0m) in the review period. Current expenditure grew by 5.7 per cent to $2,412.3m, compared with growth of 6.2 per cent in the corresponding period of 2018. There was an increase in that category of expenditure in all territories, except Grenada, with increases ranging from $0.9m (1.4 per cent) in Montserrat to $52.9m (21.8 per cent) in The Commonwealth of Dominica. On an aggregate level, higher outlays were recorded for all sub-categories of current spending, except for interest payments on the total debt stock. The amount expended for transfers and subsidies increased by

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Eastern Caribbean Central Bank