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
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