June 2020 Economic and Financial Review

June 2020 Economic and Financial Review

GRENADA

coupled with higher expenditure to support

($4.4m) while expenditure on goods and

the Government’s Covid-19 response, the

services fell by $4.1m. Interest payments

overall fiscal surplus shrank to $29.7m at the

declined by $2.3m to $25.0m, as the

end of June 2020. This represented a

authorities benefited from a moratorium on

decline of 67.1 per cent from the overall

some debt obligations. Total grants

fiscal surplus reported in June 2019.

amounted to $37.3m, an increase of 19.7 per

cent over the amount recorded in June 2019.

Financed mainly by those grant funds,

Grenada Public Finance

EC$M

capital expenditure rose by 36.5 per cent to

250.0

200.0

$32.3m.

150.0

100.0

Banking Sector Developments

50.0

0.0

Grenada Monetary Survey Percentage Change

(M2) %

-50.0

(NFA)%

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

10.0

10.0 15.0 20.0 25.0 30.0

Recurrent Revenue Recurrent Expenditure Current Account Balance

5.0

The overall fiscal position was influenced by

0.0

0.0 5.0

an 11.5 per cent ($45.1m) fall in current

-5.0

-10.0 -5.0

revenue to $348.4m. Of note, tax revenue

-10.0

19 Q1

19 Q2

19 Q3

19 Q4

20 Q1

20 Q2

decreased to $324.8m, from $373.6m at the

Money Supply (M2)

Net Foreign Assets

end of June 2019. The fall-off in economic

activity led to declines in tax revenue from

The total amount of currency held with

domestic goods and services ($19.0m),

the public and total deposits in the

international trade and transactions

banking system, otherwise called Broad

($18.3m) and incomes and profits ($12.7m).

Money Liabilities (M2) fell by 9.7 per cent

Non-tax revenue rose by $15.7m to reach

to $2,431.2m during the first half of 2020.

$35.6m due to higher intake from fees, fines

This follows growth of 0.8 per cent during

and penalties and the Economic Citizenship

the corresponding period in 2019. While the

Programme. Current expenditure grew by

total amount of currency held by the public

4.1 per cent to $323.8m, largely due to

rose by 6.8 per cent to $148.1m ,

increases in transfers and subsidies

transferable deposits (mainly demand

($14.7m), and personal emoluments

31