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2018 Annual Economic and Financial Review
DOMESTIC ECONOMIC DEVELOPMENTS
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Eastern Caribbean Central Bank
respect to Brexit, the adverse impact of the
Venezuelan crisis on fiscal and debt in the
region, a higher than expected increase in oil
prices and strengthening of geo-political
tension. Other areas of concern regarding the
growth forecasts for the ECCU are an active
hurricane season, other adverse weather
conditions associated with global warming and
climate change and socio-economic challenges
like increasing crime, unemployment and
poverty.
Real Sector Developments
Favourable conditions in the global
economy contributed to an overall
improvement in economic activity in the
region.
These positive developments in the domestic
economy stemmed largely from a turn-around
in the performance of some key economic
sectors, coupled with a major impetus from
construction activity. Value added in the
construction sector, a main contributor to
economic growth in the ECCU, decelerated in
2018, registering an expansion of 9.2 per cent,
compared with growth of 12.3 per cent in the
prior year.
The performance of the construction sector
was a reflection of higher levels of activity in
seven of the eight member territories.
Elevated private-sector-led activity across
these member territories, largely accounted
for the buoyancy in construction, which was
supplemented by activity in the public sector,
as outlays on capital projects rose. Private
sector construction in the ECCU focused
primarily on capital investments in tourism-
related properties. In the meantime, public
sector activity concentrated on rehabilitation
of infrastructure, including roads and schools
and further development of the housing stock.
On a country basis, the impact of the increase
in the construction sector was greatest in
Dominica and Anguilla, where value added
rose by 65.0 per cent and 60.0 per cent,
respectively. This impact was influenced
largely by private sector projects and
reconstruction work in both countries, as they
recovered from hurricanes Maria and Irma.
Other notable increases in construction value
added were in Antigua and Barbuda
(20.0 per cent), Grenada (15.0 per cent),