June 2020 Economic and Financial Review

June 2020 Economic and Financial Review SAINT VINCENT AND THE GRENADINES

and services (4.0 per cent), principally

Fiscal Developments

excise tax, and income and profits (2.2 per

Government’s operations resulted in an

cent). Inflows of official assistance fell by

overall deficit of $59.3m in the first six

6.3 per cent in contrast to an 18.2 per cent

months of 2020, compared with one of

increase in the first six months of 2019.

$40.3m in the corresponding period of

A primary deficit of $34.1m was

2019.

Banking Sector Developments

realized following one of $14.4m in the

Monetary liabilities (M2) contracted by

corresponding period of the prior year.

12.2 per cent to $1,543.7m, in contrast to

an increase of 5.2 per cent during the first

St Vincent & the Grenadines Public Finance

EC$M

200.0

six months of 2019. The reduction in broad

150.0

money was attributable to declines in other

100.0

deposits (11.4 per cent) to $925.3m, a major

50.0

component, and foreign currency deposits

0.0

(47.0 per cent) to $62.2m. The other major

-50.0

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

component of M2, narrow money, trended

Recurrent Revenue Recurrent Expenditure Current Account Balance

lower by 6.9 per cent, influenced by a

A current account deficit of $24.4m was

9.3 per cent reduction in the subcomponent;

recorded, compared with one of $11.1m in

transferrable deposits, in national currency.

the comparable period of the previous year.

Current expenditure rose by 4.4 per cent to

St Vincent & the Grenadines Monetary Survey Percentage Change

(M2) %

(NFA)%

$307.2m, mainly attributable to growth in

10.0

20.0

spending on compensation of employees and

15.0

5.0

goods and services, which was dampened by

10.0

0.0

5.0

declines in outlays on interest payments and

-5.0

0.0

transfers and subsidies. Current revenue

-10.0

-5.0

19 Q1

19 Q2

19 Q3

19 Q4

20 Q1

20 Q2

was relatively flat, due to lower

Money Supply (M2)

Net Foreign Assets

contributions from other revenue sources,

particularly sales of goods and services.

The decline was mitigated by increases in

the collection of taxes on domestic goods

51