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2018 Annual Economic and Financial Review ST VINCENT AND THE GRENADINES
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Eastern Caribbean Central Bank
Outlook
The economic outlook for St Vincent and
the Grenadines is expected to moderate in
2019, as the country continues to capitalize
on the initial successes on the operations of
the Argyle International Airport as well as
from developments from the 2019 budget
.
Accordingly, the economy is expected to
expand by 1.2 per cent in 2019. The economy
is anticipated to benefit from the introduction
of weekly year-round flights by American
Airlines and Air Canada Rouge, from major
cities in the United States of America and
Canada. The weekly services are expected to
boost the hotels and restaurants sector, which
is estimated to strengthen in 2019. Consistent
with this development, activity in the
transport, storage and communications and
agricultural sectors are projected to improve.
The favourable outlook for the sector is
however contingent on business reform and
productivity improvements as well as
enhanced marketing in both traditional and
non-traditional source markets. The upgrade
of a number of local tourism plants would also
contribute positively to this outlook.
Developments in the agricultural sector are
also likely to positively impact this growth
outcome. Although the sector was previously
impacted by the difficulties faced by hucksters
in remitting foreign exchange from Trinidad
and Tobago, an agreement was brokered by
the Central Bank in the last quarter of 2018
which would facilitate the remittal of funds by
traders, and consequently, some recovery in
the agricultural sector in 2019. The sector is
also expected to be bolstered by increased
production of cocoa, coffee, fruits and
vegetables as well as the identification of new
regional markets. Activity in the fishing
sector is also likely to improve in light of a
proposed agreement with Rainforest Foods, to
facilitate the export of fish, lobster and other
shellfish to regional and international markets.
The development of the medicinal cannabis
industry may also positively impact output and
employment in the sector and help to offset the
dampening effects from the traditional
agricultural sector.
Output in the selected manufacturing sub-
sectors is anticipated to decelerate as
reconstruction activity in a number of the
islands wanes. This development is expected
to be compounded by the continued
contraction in the grains component of the
sector. Meanwhile, construction activity is
projected to regain some momentum in the
coming year. Private sector construction