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2018 Annual Economic and Financial Review ST VINCENT AND THE GRENADINES
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Eastern Caribbean Central Bank
estimated contractions in the production of
feed (11.5 per cent) and bananas
(8.6 per cent).
Construction activity moderated relative to
that in the corresponding period in 2017,
attributable in part, to the low implementation
rate for public sector infrastructural projects
and the deceleration in residential
construction. Value added in this sector,
which accounted for approximately
8.4 per cent of overall output, is provisionally
estimated to have risen by 2.2 per cent,
following the more robust pace of 6.4 per cent
in the previous year. Public sector
construction, proxied by capital expenditure,
fell by 29.6 per cent to $68.4m, reflecting the
continued slow pace of implementation of
government’s capital programme. Private
sector activity helped to mitigate the weaker
public sector capital spending, as observed by
the 4.8 per cent increase in outstanding credit
to construction firms. Meanwhile, activity in
the residential sub-sector eased during the
period, as reflected in a slowdown in lending
for residential construction and renovation.
Outstanding credit to this area grew by
1.6 per cent, lower than the rate of
3.7 per cent observed in the corresponding
period of 2017. Meanwhile, growth in the
real estate, renting and business activities
sector, which accounts for the largest
contribution to GDP, remained subdued with
a growth rate of 1.4 per cent, slightly lower
than its performance in the previous year.
According to preliminary estimates, output in
the agricultural sector is estimated to have
recorded negative growth, reflecting a number
of persistent logistical issues associated with
the sector. These included the challenges
faced by farmers and hucksters in obtaining
foreign exchange from Trinidad and Tobago,
which persisted during the early months of
2018 and which created a disincentive for
cultivation by some farmers. Following a
3.8 per cent expansion in 2017, output in the
sector is estimated to have contracted by
1.7 per cent in 2018. The weak performance
was primarily driven by a decline in non-
banana output (1.7 per cent). While initial
estimates indicated strong advances in cocoa
production, contractions were registered in
other produce such as ginger, pumpkin and
cabbage. This contraction was only partly
offset by an estimated marginal improvement
in banana output. Meanwhile, fish landing
and export is assessed to have accelerated by
7.4 per cent in 2018, partly attributable to
increased activity in fishing of lobster and
other shellfish for the local and export
markets. Particularly, fishing exports doubled