Economic and Financial Review - June 2019

M O N T S E R R A T

Overview

Preliminary data indicate that economic activity in Montserrat expanded in the first six months of 2019, compared with the corresponding period of 2018. The expansion in activity was led by the improved performance in a number of key economic drivers including public administration and tourism. The consumer price index increased by 1.7 per cent, on an end of period basis. The merchandise trade deficit widened as the value of imports increased. The fiscal operations of the central government resulted in a larger overall deficit, primarily associated with lower grant flows in the period. The total public sector debt declined, driven largely by a contraction of the indebtedness of public corporations. In the banking system,

total monetary liabilities and domestic credit grew, while, net foreign assets declined. The commercial banking system remained relatively liquid and stable, while the spread between the weighted average interest rates on loans and deposits narrowed during the period under review.

Despite downside risks, developments for the first six months of the year suggest a positive outlook for the economy of Montserrat in 2019. The prospects are premised on anticipated developments in the major contributors to economic activity, including the public administration and construction sectors and tourism industry.

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Eastern Caribbean Central Bank