June 2020 Economic and Financial Review

June 2020 Economic and Financial Review SAINT VINCENT AND THE GRENADINES

by the commencement of a road

St Vincent & the Grenadines Visitor Arrivals

Thousands

200.0

rehabilitation and repair programme.

150.0

100.0

In contrast to developments in most

50.0

sectors, agricultural activity is estimated

0.0

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

to have risen, driven by gains in the

Stay-overs Cruise Ship Passengers

Yacht Passengers Excursionists

The

output of crops and livestock.

strengthening of crop production, reflected

Value added in the manufacturing sector

additional incentives granted to farmers in

is estimated to have declined, underscored

the form of reduced input prices, which

by reductions of 20.4 per cent and

lowered production costs. These measures

33.1 per cent in the output of beer and

were aimed at strengthening food security in

feeds, respectively. The export volume of

response to the COVID-19 pandemic.

rice, a proxy of its production is also

estimated to have fallen by 56.8 per cent.

The consumer price index fell by

The impact of these declines was moderated

0.7 per cent during the first six months of

by growth of 13.8 per cent in the output of

2020, reversing an increase of the same

flour.

Lower output in tourism and

magnitude during the corresponding

manufacturing would have generated

period of 2019. The decline in the index

negative externalities, thereby adversely

was attributable mainly to lower prices for

impacting the wholesale and retail trade,

transport (4.5 per cent) and housing, water,

transport, storage and communications;

electricity and other fuels (1.5 per cent).

financial intermediation and real estate,

St Vincent & the Grenadines Consumer Price Index Percentage Change

renting and business activities sectors.

%

3.0

2.0

Lower construction activity in the first

1.0

0.0

half of 2020 was partly reflected through

-1.0

-2.0

a reduction in the import of construction

-3.0

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

All Items Food & Non-Alchoholic Beverages Energy

related materials (0.7 per cent). However,

Note: Energy includes Housing, Utilities, Gas & Fuels

public sector investment rose, driven largely

50