June 2020 Economic and Financial Review

June 2020 Economic and Financial Review

ANTIGUA AND BARBUDA

Concurrently, spending pressures partially

year, due mainly to an improvement in

subsided, on account of the introduction of a

A current account

the current account.

shift system and remote working by the

deficit of $4.2m was recorded and

public sector, as well as moratoriums on

government’s primary surplus position

government debt repayments. Current

improved to $11.1m.

expenditure declined by 13.0 per cent

Antigua and Barbuda Public Finance

EC$M

($59.3m) to $397.8m, reflecting reduced

-100.0 -50.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0

expenditure on all major expenditure items,

including goods and services ($33.6m),

transfers and subsidies ($14.5m), interest

payments ($9.3m) and personal emoluments

($1.8m). Capital revenue fell by $0.7m to

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

$1.3m and investment in the government’s

Recurrent Revenue Recurrent Expenditure Current Account Balance

capital programme retreated by 3.9 per cent

($1.5m) and stood at $35.6m, as a number

Against the backdrop of widespread hotel

of projects were suspended.

closures and limited commercial activity

from disruptions in business operations,

Banking Sector Developments

current revenue declined by 9.2 per cent

($40.0m) to $393.6m. This was driven by

Consistent with the contraction in

contractions in taxes on domestic goods and

economic activity, monetary liabilities

services ($18.5m), international trade and

(M2), which comprise currency issued

transactions ($12.3m) and property ($9.8m),

and bank deposits, fell by 6.3 per cent

while taxes on income and profits rose by

during the first six months of 2020 to an

$8.7m. These declines were compounded

aggregate value of $3,619.7, following a

by an $8.0m falloff in non-tax revenue, due

2.5 per cent increase in 2019.

to lower receipts from the Citizenship-by-

Investment (CBI) programme, which

amounted to $40.8m for the period.

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