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2018 Annual Economic and Financial Review
DOMESTIC ECONOMIC DEVELOPMENTS
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7
Eastern Caribbean Central Bank
received a 5.0 per cent salary increase, while
those in Grenada were awarded a 3.0 per cent
raise, coupled with a one-time payment of
$750. While government employees in
St Kitts and Nevis did not receive any pay
increase, they were granted a one-month
salary bonus in December. Public servants in
Saint Lucia did not receive any wage increase,
but the number of public sector employees
rose, as more police officers were enlisted to
the Royal Saint Lucia Police Force. Due to
the buoyant construction activity in Anguilla,
Grenada and St Kitts and Nevis, employment
levels were estimated to have increased.
Preliminary estimates point to reduced
unemployment levels in Montserrat,
Dominica and Saint Lucia, where the number
of persons employed increased, particularly in
the public service. Based on preliminary
reports from the social security systems, the
total number of insured persons in
Antigua
and
Barbuda
and
St Vincent and the Grenadines rose. On
average, however, the unemployment rate in
the ECCU, which continues to be a concern
for regional policymakers, may have edged
downwards. The structural impediments in
the labour market persists and while the region
made small strides in the area of employment,
a more targeted regional approach is necessary
to drive down unemployment and
underemployment to sustainable levels for
long run survival of the social security
systems.
Fiscal and Debt Developments
Preliminary data on the aggregated fiscal
operations of the central governments
indicated that an overall surplus (after
grants) of $12.7m (0.1 per cent of GDP) was
generated, in contrast to a deficit of
$109.5m (0.6 per cent of GDP) recorded one
year earlier.
The turn-around in the overall
balance position was largely attributable to
developments on the current account, as a
larger current surplus more than offset growth
in capital expenditure. The overall fiscal
improvement was also reflected in the primary
balance (after grants), as it yielded a surplus
of $481.2m (2.4 per cent of GDP) compared
with one of $351.6m (1.9 per cent of GDP) in
the prior year. The augmented primary
balance indicates a general improvement in the
fiscal position of six member territories.
St Kitts and Nevis, Grenada, Saint Lucia,
St Vincent and the Grenadines, Anguilla and
Antigua and Barbuda all recorded larger
primary surpluses, while Dominica realized a
wider primary deficit. Montserrat, on the