Economic and Financial Review - June 2019

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

enterprises, as credit extended to them rose while their deposit balances declined. The overall expansion in domestic credit was partially offset by a contraction in private sector credit and an increase in the net deposit position of the general government. Private sector credit decreased by 0.4 per cent, reflecting a decline in credit to businesses (1.3 per cent) and households (0.3 per cent) but moderated by a 2.5 per cent increase in credit to non-bank financial institutions. The general government’s net deposit position grew by 0.9 per cent, mainly attributable to a 4.2 per cent increase in the deposits of the central government.

of 2.2 per cent in the same period of the prior year. Most notably, growth in loans extended was observed in the transport (42.4 per cent); public utilities (20.1 per cent); financial institutions (2.7 per cent); construction and land development (2.6 per cent); and distributive trade (0.3 per cent) sectors. This increase in credit was partly offset by a decrease in a group of sectors, which accounted for the largest share of credit extended. These include agriculture and fisheries (8.4 per cent); manufacturing and mining and quarrying (7.8 per cent); professional and other services (3.6 per cent); government and statutory bodies (1.1 per cent); tourism (0.7 per cent); and personal uses (0.3 per cent). The net foreign assets of the banking system stood at $2,591.0m at the end of June 2019, representing an expansion of 9.1 per cent over the stock recorded at the end of December 2018. This development was associated with a 22.0 per cent increase in the net foreign assets position of commercial banks, largely reflecting growth in their net asset position with institutions within the ECCU. The overall increase in net foreign assets was however moderated by a 9.9 per cent decline in Saint Christopher

St Kitts & Nevis Domestic Credit

EC$M

EC$M

1000.0

100 120 140 160

800.0

600.0

0 20 40 60 80

400.0

200.0

0.0

15 Q4 16 Q1 16 Q2 16 Q3 16 Q4 17 Q1 17 Q2 17 Q3 17 Q4 18 Q1

To Households

To Businesses

Total Domestic Credit (DMC)

An analysis of the distribution of commercial bank credit by economic activity revealed that total loans and advances increased by 0.6 per cent at the end of June 2019, compared with an expansion

77

Eastern Caribbean Central Bank