Economic and Financial Review - June 2019

June 2019 Economic and Financial Review SAINT LUCIA

per cent in central government’s borrowing, as its stock of domestic debt fell by 1.8 per cent, tempered by a 0.2 per cent increase in its external debt. The total outstanding debt of the public corporations is estimated to have declined by 0.6 per cent to $192.6m, influenced by a 1.0 per cent decrease ($1.5m) in their stock of domestic debt. Banking Sector Developments Monetary liabilities (M2) are estimated to have expanded by 4.4 per cent to $3,381.0m during the first six months of 2019, compared with growth of 2.7 per cent during the corresponding period of 2018. The expansion in M2 reflected developments in both of its components. Narrow money (M1) grew by 6.4 per cent to $1,080.6m, due mainly to growth in private sector demand deposits (9.3 per cent), and was tempered by contractions in currency with the public (7.5 per cent) and EC$ cheques and drafts issued (13.4 per cent). Similarly, quasi money rose by 3.5 per cent to $2,300.4m, reflecting growth in private sector foreign currency deposits (8.7 per cent), time deposits (3.3 per cent) and savings deposits (2.5 per cent).

2.4 per cent to $132.0m. However, higher transfer payments were partially tempered by lower pension and NIS payments.

Saint Lucia Public Finance

EC$M

-50.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0

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

The larger deficit recorded over the first six months of 2019 was funded primarily from external sources, with new external disbursements totalling $136.9m, while external loan payments amounted to $46.4m, for a net disbursement of $90.5m. On the domestic front, the central government drew down deposits of $23.0m in part to fund the amortisation of outstanding obligations. A net domestic amortisation of $39.4m was recorded in the review period. Preliminary data for the period ended June 2019 indicate that the total disbursed outstanding debt of the public sector stood at $3,317.4m, a decrease of 0.8 per cent from the total at the end of December 2018. This development reflected a contraction of 0.8

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Eastern Caribbean Central Bank