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2018 Annual Economic and Financial Review
DOMESTIC ECONOMIC DEVELOPMENTS
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10
Eastern Caribbean Central Bank
interest payments, noted in six of the member
territories were somewhat moderated by
declines in Grenada ($15.1m) and
St Kitts and Nevis ($2.0m). The largest
increases in interest payments were recorded
in Saint Lucia ($10.2m), Antigua and Barbuda
($5.8m), Anguilla ($4.7m) and Dominica
($3.6m), due largely to rising external
obligations.
Capital expenditure at the ECCU level grew
by 10.9 per cent to $978.6m (4.9 per cent of
GDP), which was below the 5.0 to
7.0 per cent of GDP target range
recommended by the Monetary Council. This
outturn is a deceleration from growth of
15.5 per cent to $882.5m (4.6 per cent of
GDP) recorded in 2017. The expansion in
capital outlays was observed in five
territories: Dominica ($114.7m), St Kitts and
Nevis ($48.1m), Antigua and Barbuda
($17.4m), Grenada ($9.1m) and Anguilla
($2.9m). Higher outlays on capital
expenditure largely reflected increased
spending on construction, reconstruction and
rehabilitation of major infrastructure,
including roads, a cruise-ship pier and a few
public housing projects.
Total grant inflows declined by 4.4 per cent to
$372.0m (1.8 per cent of GDP), in contrast to
growth of 11.4 per cent to $388.9m
(2.0 per cent of GDP) in the previous year.
This outturn was associated with lower
inflows in four of the territories, particularly
in Saint Lucia ($27.4m) Dominica ($13.3m)
and Montserrat ($9.4m). By contrast, total
grant flows increased in the remaining four
territories including Antigua and Barbuda
($13.6m),
Grenada
($11.3m)
and
St Kitts and Nevis ($9.7m).
The total stock of outstanding public sector
debt of the ECCU member countries
increased by 2.5 per cent to $13,674.6m at
the end of December 2018, in contrast to a
marginal contraction (0.3 per cent) during
the prior year. Notwithstanding the
increase in the debt level, the debt to GDP
ratio fell to 67.9 per cent from 70.0 per cent
at the end of December 2017.
Growth in
disbursed outstanding debt largely reflected a
2.4 per cent ($283.4m) increase to
$12,036.4m in the outstanding debt of the
central government, supported by a rise in the
debt of public corporations. The expansion in
central government’s indebtedness stemmed
from increases of 3.2 per cent and 1.4 per cent
in external and domestic debt obligations,
respectively. These expansions were driven
largely by increased indebtedness by the
governments of Antigua and Barbuda,