June 2020 Economic and Financial Review

June 2020 Economic and Financial Review

GRENADA

deposits and current accounts), fell by

Relative to the end of December 2019,

$207.7m as persons withdrew their deposits

commercials banks liquidity increased

to meet obligations and other needs in an

slightly as the total loans to deposit ratio

environment of job loss, lower incomes and

dropped to 52.4 per cent from 53.4 per cent

a reduction in business revenue. Other

at the end of December 2019. The quality

deposits in national currency and those held

of commercial banks assets declined

in foreign currency fell by $28.8m and

marginally, evidenced by an increase in the

$33.0m, respectively.

non-performing loans ratio to 3.0 per cent

from 2.2 per cent at the end of

December 2019.

The net foreign assets of the banking system

grew by 31.5 per cent to $1,841.2m.

External Sector Developments

Meanwhile, net domestic assets declined by

54.3 per cent to $590.1m as government’s

Grenada Visible Trade

EC$M

deposits more than doubled to $856.3m.

400.0

300.0

Credit growth to the private sector was

200.0

100.0

sluggish at 0.9 per cent. Commercial banks

0.0

-100.0

outstanding loans and advances amounted to

-200.0

$1,746.6m during the first six months of

-300.0

-400.0

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

2020. The highest allocations were for real

Total Exports

Total Imports

Trade Balance

estate activities, construction and land

development and private households.

The mechandise trade deficit shrank by

18.7 per cent to $477.3m in the first six

Grenada Domestic Credit

months of 2020.

Lower imports of food

EC$M

EC$M

1200.0

1600

and live animals, mineral fuels and related

1400

1000.0

1200

materials, and machinery and transport

800.0

1000

600.0

800

equipment were the main contributors to the

600

400.0

400

19.9 per cent reduction in the import bill.

200.0

200

0.0

0

Export receipts fell by 35.8 per cent because

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

To Households

To Businesses

Total Domestic Credit (DMC)

of reduced exports of agricultural and

manufactured products. Gross travel

32