June 2020 Economic and Financial Review

June 2020 Economic and Financial Review

ANGUILLA

accommodation and food services; and

56.3 per cent to $107.0m during the period

construction and land development.

of review.

Anguilla Visible Trade

Anguilla Domestic Credit

EC$M

EC$M (DMC)

EC$M

300.0

400.0

560

200.0

350.0

540

100.0

300.0

520

250.0

0.0

500

200.0

-100.0

480

150.0

460

-200.0

100.0

440

50.0

-300.0

18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

0.0

420

18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

Total Exports

Total Imports

Trade Balance

To Households

To Businesses

Total Domestic Credit (DMC)

The banking system remained highly liquid

Outlook

at the end of June 2020, with the ratio of net

The economy of Anguilla is projected to

liquid assets to total deposits rising by

record negative growth in 2020, as

2.4 percentage points to 52.8 per cent.

tourism activity is not anticipated to

Meanwhile, the quality of commercial bank

recover for the rest of the year. However,

assets deteriorated as the ratio of non-

construction activity will cushion some of

performing loans to gross loans rose to

the fallout from tourism. Other downside

26.3 per cent from 25.8 per cent at the end

risks include adverse weather and

of December 2019.

interruptions to global trade due to

geopolitical conflicts. Domestically, given

External Sector Developments

the number of persons employed in the

Consistent with the contraction in economic

tourism industry, the increase in

activity, the deficit on the merchandise trade

unemployment will continue to affect

account fell to $201.7m at the end of

domestic consumption. Of note, the tax

June 2020 from $326.5m over the same

revenue shortfall in 2020 will be met by UK

timeframe in 2019. The import bill fell by

budgetary support, allowing for some level

$135.9m, while export receipts declined by

of normalcy in government operations.

$11.1m. Gross travel receipts decreased by

17