Economic and Financial Review - June 2019

June 2019 Economic and Financial Review MONTSERRAT

performances in all its sub-categories. Stay- over arrivals from the Caribbean, the main source market, grew by 3.9 per cent (82) to 2,171, a slower pace than the 8.1 per cent recorded in the first six months of 2018. The number of stay-over visitors from the UK, the second largest source market, increased by 4.4 per cent (74) to 1,742, compared with growth of 16.6 per cent in the corresponding period of the prior year. Of the remaining sub-categories, stay-over arrivals from the USA and Canada increased by 4.2 per cent (63) and 4.8 per cent (20), respectively. Likewise, the number of excursionists increased by 8.2 per cent (101) to 1,339, a deceleration from growth of 17.2 per cent recorded in the first half of 2018. By contrast, a decline of 3.7 per cent in yacht passenger arrivals to 1,154, a consequence of a reduced number of yacht calls, somewhat mitigated the overall improvement in total visitor arrivals.

Activity in the construction sector improved, reflective of a 19.9 per cent increase in capital expenditure, a faster pace than growth of 10.3 per cent recorded in the first half of 2018. Public sector construction focused largely on the maintenance of roads, bridges and other vital infrastructure. The value of construction starts in the review period grew by 84.0 per cent compared with growth of 27.7 per cent in the corresponding period of the prior year. An increase of 1.4 per cent in commercial bank lending to the sector, also gave credence to the estimated improvement in overall construction activity. The consumer price index increased by 1.7 per cent, on an end of period basis, compared with growth of 1.9 per cent during the first half of 2018. The increase was largely associated with growth of 5.1 per cent in the transport sub-index and 2.5 per cent in prices for housing, water, electricity, gas and other fuels. In addition, upward movements in the prices of miscellaneous goods and services (1.1 per cent) and alcoholic beverages, tobacco and narcotics (0.8 per cent) contributed to overall inflationary. Meanwhile, the increase in the general price level was tempered somewhat by declines in

Montserrat Visitor Arrivals

Thousands

5.0

4.0

3.0

2.0

1.0

0.0

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

Stay-overs Cruise Ship Passengers

Yacht Passengers Excursionists

64

Eastern Caribbean Central Bank