Economic and Financial Review - June 2019

June 2019 Economic and Financial Review GRENADA

a 1.7 per cent ($27.9m) increase to $1,694.4m in quasi money which represents 71.2 per cent of M2. The evolution of quasi money represented upward movements in private sector savings deposits (1.9 per cent) and private sector foreign currency deposits (6.5 per cent). The increase in quasi money was moderated by a 3.5 per cent reduction in private sector time deposits. Meanwhile, narrow money (M1) fell by 2.6 per cent to $683.9m. Of the components of (M1), currency with the public declined by 11.0 per cent and private sector demand deposits contracted by 0.7 per cent, offsetting a 9.9 per cent upturn in EC$ cheques and drafts issued. deceleration from the rate of growth of 12.1 per cent during the first half of 2018. Growth stemmed largely from an expansion of 18.4 per cent ($127.6m) in the net foreign assets of commercial banks. Principally, this reflected increases in commercial banks net asset position with financial institutions within the Currency Union as well as their foreign investment portfolio. The increase in banking system net foreign assets was also further augmented by an increase in The net foreign assets of the banking system grew by 9.9 per cent ($130.7m) to $1,445.7m, representing a slight

of $2,091.3m at the end of December 2018. The downward trajectory in the outstanding debt represented reductions in the debt stock of the central government by 2.6 per cent to $1,925.8m, and that of public corporations by 39.5 per cent to $68.6m. The decline in central government debt reflected a 3.2 per cent ($47.3m) reduction in external debt coupled with a 1.0 per cent ($4.8m) contraction in domestic debt. Meanwhile, the lower outstanding debt of public corporations was driven by the elimination of external indebtedness and a 13.6 per cent decrease ($10.8m) in debt held with domestic creditors.

Grenada Visible Trade

EC$M

-400.0 -300.0 -200.0 -100.0 0.0 100.0 200.0 300.0 400.0

15 Q4

16 Q1

16 Q2

16 Q3

16 Q4

17 Q1

17 Q2

17 Q3

17 Q4

18 Q1

18 Q2

18 Q3

18 Q4

19 Q1

19 Q2

Total Exports

Trade Balance

Total Imports

Banking Sector Developments Monetary liabilities (M2) expanded more slowly at 0.4 per cent to $2,378.3m during the first six months of 2019, compared with growth of 0.5 per cent observed in the first half of 2018. The expansion was fuelled by

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Eastern Caribbean Central Bank