Economic and Financial Review - June 2019

June 2019 Economic and Financial Review ANGUILLA

contraction of 11.9 per cent ($13.3m) in the comparable period of 2018. This development was primarily attributable to a 36.1 per cent ($28.8m) growth in tax revenue to $108.5m, tempered by a 5.5 per cent ($1.0m) decline in non-tax receipts. Accounting for the bulk of the increase in tax revenue were collections from taxes on domestic goods and services, which rose by 72.5 per cent ($18.4m) in contrast to a 47.7 per cent ($23.2m) decline in the previous year. Specifically, accommodation tax receipts improved the most over the review period, and rose by more than six-fold to $20.6m. This performance was consistent with the strong growth in visitor arrivals in the first six months of the year, with the number of stayover visitors reaching a record level in Anguilla over that period. Further supporting current revenue growth were increases in property tax receipts, import duties, and taxes on income and profits, all consistent with a growing economy. Moderating current revenue growth, however, were stamp duty receipts, which declined by 46.7 per cent ($3.1m) as the sales of villas slowed.

average cost of personal computers and other recreational items drove the recreational and culture sub-index.

Anguilla Consumer Price Index Percentage Change

%

3.0

2.0

1.0

0.0

-1.0

-2.0

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

All Items Food & Non-Alchoholic Beverages Energy

Note: Energy includes housing, utilities, gas & fuels

Fiscal and Debt Developments

The fiscal operations of the central government resulted in an overall surplus of $24.6m in the first half of 2019, compared with one of $2.8m in the corresponding period of 2018. This result was primarily driven by developments in the current account, which registered a surplus of $26.0m, compared with one of $2.2m in the comparable period one year earlier. Consequently, a primary surplus (after grants) of $34.1m was recorded, relative to the $11.6m surplus realised over the corresponding period of 2018.

Current revenue increased by 28.1 per cent ($27.8m) to $126.5m, in contrast to a

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Eastern Caribbean Central Bank