Economic and Financial Review - June 2019

June 2019 Economic and Financial Review DOMESTIC ECONOMIC DEVELOPMENTS

12.9 per cent ($71.8m) to $627.8m, in contrast to a decline of 0.5 per cent ($2.8m) noted in the first six months of last year. The higher level of outlays on transfers and subsidies was prevalent in seven territories.

received a double payment of salaries over the review period.

Payment for goods and services rose by 2.2 per cent ($11.5m) to $547.0m, largely on account of developments in The Commonwealth of Dominica, which recorded the largest increase ($16.2m), followed by Antigua and Barbuda ($7.7m). Other countries recording growth in outlays of goods and services were Anguilla ($4.0m), Saint Vincent and the Grenadines ($3.0m) and Montserrat ($1.1m). Contrastingly, Grenada, Saint Christopher (St. Kitts) and Nevis and Saint Lucia recorded declines in spending for goods and services of $1.5m, $11.7m and $7.3m, respectively. The increases in outlays for personal emoluments and goods and services more than offset a contraction of 1.6 per cent ($3.7m) in expenditure on interest payments. Interest payment obligations fell in three member territories – Antigua and Barbuda ($4.1m), Grenada ($1.2m) and Saint Christopher (St. Kitts) and Nevis ($3.5m). Capital expenditure amounted to $531.5m in the review period, representing growth of 17.3 per cent ($78.3m) in comparison with an increase of 7.9 per cent ($33.1m) in the

Montserrat Public Finance

EC$M

-30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0

17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2

Recurrent Revenue Recurrent Expenditure Current Account Balance

Outlays on personal emoluments, the largest sub-component of current spending, grew by 5.1 per cent ($47.8m) to $994.1m, compared with growth of 4.0 per cent ($36.5m) recorded in the corresponding period of 2018. Expenditure on personal emoluments was higher in five territories – Antigua and Barbuda, Montserrat, Saint Christopher (St. Kitts) and Nevis, Saint Lucia and Saint Vincent and the Grenadines. The most significant growth was noted in Saint Lucia ($31.8m), related to an increase in the number of consultancies, followed by Antigua and Barbuda ($11.7m), as public servants there

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Eastern Caribbean Central Bank