June 2020 Economic and Financial Review

June 2020 Economic and Financial Review DOMESTIC EONOMIC DEVELOPMENTS

The aggregated fiscal operations of member

(0.8 per cent) to $2,438.8m relative to an

governments yielded a current account

8.9 per cent increase in the prior year.

deficit of $156.4m in contrast to a surplus of

These declines were observed in Antigua

$370.4m one year earlier. Undermined by

and Barbuda (9.3 per cent), Anguilla

global travel restrictions, extensive

(13.0

per

cent)

and

Dominica

lockdowns and commercial disruptions in

(13.7 per cent), which instituted less

several member countries, current revenue

extensive stimulus measures. Conversely,

slumped by 19.3 per cent to $2,282.4m. The

current expenditure rose in the remaining

fall in revenue was due to lower inflows

five countries, as a number of these

from all of the major tax categories,

governments provided extraordinary support

including taxes on property (25.5 per cent),

to mitigate the economic impact of the

on international trade and transactions

pandemic through investments in the health

(16.5 per cent) on domestic goods and

sector and the introduction of stimulus

services (14.8 per cent) and on income and

measures for social protection. With the

profits (15.9 per cent). The deterioration in

exception of St Kitts and Nevis and

current revenue was also driven by a sharp

Anguilla, all member governments recorded

fall (30.2 per cent) in receipts from non-tax

lower outlays in interest payments, as they

revenue, precipitated by lower inflows from

benefitted

from

loan

repayment

the Citizenship by Investment Programmes.

moratoriums from selected creditors.

Due to the rigorous containment measures

ECCU Public Finance

EC$M

-400.0 -200.0 0.0 200.0 400.0 600.0 800.0 1000.0 1200.0 1400.0 1600.0 1800.0

and heightened uncertainty, capital

expenditure at the ECCU level declined by

36.8 per cent to $316.3m, following a

0.1 per cent fall in 2019. Contractions in

capital outlays were noted in four countries:

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

Commonwealth of Dominica ($171.3m),

Recurrent Revenue Recurrent Expenditure Current Account Balance

Saint Lucia ($30.2m) St Kitts and Nevis

($7.8m) and Antigua and Barbuda ($1.5m).

Reflecting the differentiated responses by

Total grant inflows rose by 40.0 per cent to

member governments to the crisis, total

current expenditure declined marginally

9

Made with FlippingBook - professional solution for displaying marketing and sales documents online