Economic and Financial Review - June 2019

June 2019 Economic and Financial Review SAINT CHRISTOPHER (ST KITTS) AND NEVIS

$21.5m. Meanwhile, current revenue grew by 2.1 per cent ($1.5m) to $70.1m, reflecting an improvement in tax revenue (4.1 per cent or $2.1m) but partially offset by a decline of 3.5 per cent ($0.6m) in non- tax revenue. Current revenue was complemented by budgetary assistance of $15.0m from the federal government, the same amount as in the comparable period of 2018. 0.3 per cent to $1,570.0m at the end of June 2019. This outturn was largely associated with a 4.5 per cent expansion in the debt of public corporations, reflecting an increase in debt owed to domestic creditors (5.7 per cent) but partially offset by a contraction in obligations to external creditors (11.1 per cent). Mitigating the uptick in public sector debt, the debt of the central government declined by 1.3 per cent, owing to a decline in both its external (1.7 per cent) and domestic (1.1 per cent) obligations. Banking Sector Developments Monetary Liabilities (M2) grew by 3.0 per cent to $2,842.3m in the first half of 2019. The expansion in M2 was driven by The total disbursed outstanding public sector debt increased marginally by

an increase in both quasi money, the larger component of M2, and narrow money. Quasi money rose by 2.0 per cent to $2,251.4m, reflecting growth in private sector savings deposits (3.8 per cent) and private sector foreign currency deposits (1.2 per cent), but slightly moderated by a decrease in private sector time deposits (0.5 per cent). Growth in monetary liabilities was also augmented by a 6.9 per cent uptick in narrow money to $590.9m, attributable to a 13.3 per cent increase in private sector demand deposit balances. However, declines in currency with the public (3.0 per cent) and EC$ Cheques and Drafts (2.7 per cent) tempered this increase.

St Kitts & Nevis Monetary Survey Percentage Change

(M2) %

(NFA)%

10.0

0.0 2.0 4.0 6.0 8.0

5.0

0.0

-8.0 -6.0 -4.0 -2.0

-5.0

-10.0

15 Q4

16 Q1

16 Q2

16 Q3

16 Q4

17 Q1

17 Q2

17 Q3

17 Q4

18 Q1

18 Q2

18 Q3

18 Q4

19 Q1

19 Q2

Money Supply (M2)

Net Foreign Assets

Domestic credit increased by 0.6 per cent during the period under review. This outturn was driven by a decline in the net deposit position of non-financial public

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Eastern Caribbean Central Bank