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2018 Annual Economic and Financial Review
ANGUILLA
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Eastern Caribbean Central Bank
return to full operations and demand from
major source markets continues apace.
In
addition, access issues are expected to
improve as airlift increases in line with the
return to normal traffic at the Princess Juliana
Airport in St Maarten, Anguilla’s primary
gateway. Increased output in the tourism
sector will have an important knock-on effect
on wholesale and retail trade, transport,
storage and communications. Furthermore,
strong support is expected from the
construction sector, as work on key
infrastructure such as the Blowing Point
Terminal, the Clayton J Lloyd International
Airport and all public schools will accelerate
in 2019. Much of the central government’s
capital programme will be supported by grant
aid provided by the UK government as part of
a three-year package of assistance to rebuild
critical infrastructure.
There are critical
downside risks to the outlook
. A key one
relates to the possibility of a no-deal
withdrawal of the United Kingdom from the
European Union and what such an eventuality
may portend for critical aid to Anguilla’s
capital reconstruction programme. Closely
aligned to this, is the potential effect of Brexit
on the British pound, which can negatively
affect the purchasing power of UK travellers.
In addition, a faster-than-expected slowdown
in the US economy, further aggravated by a
possible escalation in trade tensions between
the United States of America and China, could
dampen global growth and negatively impact
the demand for leisure among travellers in key
source markets. Furthermore, the non-
divestiture of ANGLEC shares could pose
liquidity issues for the central government and
impair its ability to honour maturing debt
obligations.
Real Sector Developments
Following two consecutive years of
contraction, economic output rebounded in
2018, primarily led by construction and
wholesale and retail trade.