June 2020 Economic and Financial Review

June 2020 Economic and Financial Review DOMESTIC EONOMIC DEVELOPMENTS

Fiscal Developments

ECCU Exports of Bananas

'000 Tonnes/ EC$M

Preliminary data on the aggregated fiscal

7.0

6.0

operations of the central governments

5.0

4.0

indicate that an overall deficit of $290.1m

3.0

was generated, in contrast to a surplus of

2.0

1.0

$1.7m recorded in the prior year. The

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primary balance yielded a deficit of $63.8m

Volume Value

in contrast to a surplus of $243.8m in the

previous year. This dramatic reversal was

Prices

largely attributed to a deterioration in

Amid the synchronized decline in global

current revenue and masks important

economic activity and falling crude oil

differences across member countries.

prices, the ECCU experienced deflationary

Deficits were registered in all member

conditions. Consumer prices retreated by

countries with the exception of Grenada,

2.8 per cent in the first half of 2020,

where a marginal surplus was observed.

following a marginal growth of 0.2 per cent

Antigua and Barbuda and Commonwealth of

in the corresponding period one year earlier.

Dominica realized smaller deficits, while

The fall in the index reflected declines

larger deficits were observed in

across all member countries and across most

Saint Vincent and the Grenadines and

of the sub-indices, particularly the

Montserrat.

Saint

Lucia,

petroleum-based components. The declines

St Christopher (St Kitts) and Nevis and

in price levels ranged from 0.2 per cent in

Anguilla yielded deficits after recording

Antigua and Barbuda to 2.1 per cent in

surpluses in the preceding year.

Saint Lucia.

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