Anguilla’s Economy Contracted 2.4% in 2018

According to figures from the Caribbean Development Bank, the contraction in Anguilla deviates from the general picture of positive economical figures. Photo: CDB.

According to the Regional Economic Summary 2018, published by the Caribbean Development Bank (CDB) Anguilla’s economy did not perform well during the year 2018.

The island’s economy contracted by 2.4% in 2018, even as construction activity  surged. The impact of the passage of Hurricane Irma in 2017 was evident in the steep decline in tourism arrivals and in the Government of Anguilla’s (GOA) fiscal performance. The current, primary, and overall balances weakened. The fiscal imbalance was financed with an external loan and domestic resources. During the year, the debt level rose slightly and foreign assets dwindled. Overall consumer prices increased marginally and private sector borrowing contracted.

The economic outlook is positive with output projected to increase by 3.9% in 2019. The planned reconstruction of critical public infrastructure and the recovery of the tourism industry should drive economic growth. Although fiscal conditions are likely to improve as GOA’s tax administration strengthens, financing gaps are expected to remain in 2019.

Anguilla and Barbados were the only 2 Caricom economies which saw an economic contraction for the year 2018. All other countries saw economic growth ranging from moderate growth in 0.5% in Dominica to a healthy growth of 5,2% in Grenada.

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