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2018 Annual Economic and Financial Review
ANGUILLA
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23
Eastern Caribbean Central Bank
hotel and villa capacity in the wake of
hurricane Irma
.
Mitigating the downward
movement in the numbers was an increase of
20.9 per cent in arrivals from the Caribbean,
the second largest market. This development
was partly influenced by the influx of
temporary workers and consultants on the
island in the aftermath of Hurricane Irma. The
contribution of the hotels and restaurants
sector to GDP fell to 16.3 per cent from
22.5 per cent in the prior year.
The real estate, renting and business
activities sector, which accounts for
15.0 per cent of GDP, and represents the
second largest contributor to economic
output, recorded no change in value added
over the review period
. Developments in this
sector were characterized by a contraction in
the renting of machinery and equipment,
consistent with the decline in visitor arrivals.
However, this decline was matched by
marginal improvements in subsectors
including real estate activities, business
services and computer and related services.
Value added in public administration,
defence and compulsory social security,
rose by 1.0 per cent as against a contraction
of 0.1 per cent in 2017.
The expansion was
influenced by larger outlays for personal
emoluments as well as goods and services.
Public
administration,
defence
and
compulsory social security, accounted for
10.5 per cent of GDP in 2018.
The transport, storage and communications
sector, which contributed 8.8 per cent of
GDP, recorded a 1.4 per cent increase in
value added, in contrast to a decline of
14.2 per cent in 2017
. Within the
subcomponents, activity in the transport and
storage subsector expanded by 12.9 per cent,
consistent with the increase in construction
sector output, while that for the
communications subsector contracted by
10.0 per cent as overall tourism activity fell.
By contrast,
value added in the financial
intermediation sector, which contributed
7.1 per cent of GDP, declined by 2.9
per cent, on the heels of a 13.1 per cent
contraction in 2017
. The outturn was largely
influenced by the continued high level of
prudence of commercial banks in extending
credit as the Anguillan economy returns to
stable growth. This development was
characterized by a further decline in credit
extended to the private sector over the review
period.