Economic and Financial Review - June 2019

June 2019 Economic and Financial Review ANTIGUA AND BARBUDA

(3.3 per cent). Meanwhile, the narrow money supply (M1), rose by 7.8 per cent ($75.2m), reflecting expansions in its three major sub-categories, namely EC$ cheques and drafts issued (60.9 per cent), private sector demand deposits (6.9 per cent) and currency with the public (2.4 per cent).

increase in accounts payables to domestic creditors. In contrast, the total outstanding debt stock of public corporations declined by 1.7 per cent to $614.1m, reflecting contractions in both their domestic and external debt portfolios.

Antigua and Barbuda Public Finance

EC$M

-100.0 -50.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0

Antigua and Barbuda Monetary Survey Percentage Change

(M2) %

(NFA)%

-10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0

10.0 15.0 20.0

0.0 5.0

-15.0 -10.0 -5.0

17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2

17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2

Recurrent Revenue Recurrent Expenditure Current Account Balance

Money Supply (M2)

Net Foreign Assets

Banking Sector Developments Broad money (M2) rose by 3.0 per cent to $3,799.3m during the first six months of 2019, which was lower than the pace of growth of 7.5 per cent over the corresponding period in 2018. The expansion in broad money was sustained by gains in both quasi money and narrow money. Quasi money, which represents the larger of the two major components of M2, grew by 1.3 per cent to $2,755.5m during the first half of the year, supported by greater accumulation of private sector foreign currency deposits (18.0 per cent) and private sector savings deposits

During the first six months of 2019, domestic credit in the banking system rose by 1.4 per cent to $2,394.4m, in contrast to the 2.3 per cent decline recorded during the corresponding period of the prior year. This expansion was due in large part to the 1.4 per cent growth in private sector credit to $1,966.7m, due to a rise in the stock of credit extended to business (2.8 per cent) and households (1.8 per cent). Growth in domestic credit was also partly associated with the transactions of Non-Financial Public Institutions. Notably, these enterprises drew down on deposits

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Eastern Caribbean Central Bank