Annual Economic and Financial Review -December 2018

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106

Eastern Caribbean Central Bank

S T V I N C E N T A N D T H E G R E N A D I N E S

Overview

Following sluggish growth in the previous

year,

economic

activity

St Vincent and the Grenadines is

provisionally estimated to have gained

greater momentum in 2018.

Real GDP is

estimated to have expanded by 3.2 per cent in

2018, following a 0.7 per cent increase in

2017

This growth momentum was fairly

broad-based, and was underpinned by

expansions in key service sectors. The

relatively buoyant economy was accompanied

by moderating consumer prices, which rose

by 1.4 per cent on an end of period basis, due

In keeping with international standards, the ECCB updated the terminology used to describe economic activity in the

ECCU. Accordingly, the Bank now reports real change in the economy using real Gross Domestic Product (GDP) at

market prices and not Gross Value Added (GVA) at basic prices as used in previous reports of the Annual Economic

and Financial Review (AEFR). However, GVA will remain applicable for output by sector.

in part to rising prices in utilities and

transport. Central government’s operations

improved marginally resulting in a narrower

overall fiscal deficit. Following a contraction

in the debt stock in 2017 as a result of debt

forgiveness, the stock of total outstanding

public sector debt rose in 2018, mainly due to

an increase in central government debt.

Although monetary and credit conditions

remained fairly favourable, there was a

continued contraction in outstanding credit to

businesses, despite improved economic

activity. Liquidity ratios of banks remained

within the statutory limits and asset quality