Economic and Financial Review - June 2019

A N G U I L L A

Overview

Economic activity in Anguilla is estimated to have expanded in the first half of 2019 compared with the performance in the corresponding period of 2018. This positive performance was mainly influenced by growth in the hotels and restaurants sector, which impacted ancillary sectors such as wholesale and retail, transport, storage and communications, and electricity and water. Consumer prices fell by 0.2 per cent on an end-of-period basis. In the external sector, the merchandise trade deficit is estimated to have narrowed, largely on account of a decrease in import payments. The fiscal operations of the central government resulted in a larger overall surplus and the total outstanding public sector debt declined

during the review period. In the banking system, net foreign assets increased, while domestic credit and monetary liabilities contracted. Commercial bank liquidity improved and the weighted average interest rate spread between loans and deposits narrowed. Additionally, the asset quality of the banking system improved over the review period. The economy of Anguilla is projected to record relatively strong growth in 2019, largely attributable to the continued robust performance of the tourism industry, which contributes over 20.0 per cent of the country’s GDP. Some support is also anticipated from public sector investment

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Eastern Caribbean Central Bank