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2018 Annual Economic and Financial Review
ANGUILLA
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Eastern Caribbean Central Bank
This outturn was largely driven by an increase
in grant inflows, mainly associated with post
hurricane Irma relief efforts. The central
government’s recurrent operations resulted in
a current account deficit of $7.4m compared
with one of $4.7m in 2017, as current
expenditure growth outpaced that of current
revenues. A primary surplus (after grants) of
$23.5m was recorded compared with one of
$20.7m one year prior.
Current revenue increased by 5.0 per cent to
$200.2m (24.6 per cent of GDP) compared
with a 1.0 per cent rise to $190.7m
(25.1 per cent of GDP) one year prior. The
expansion in current revenue was mainly
influenced by a 37.6 per cent ($10.2m)
increase in non-tax revenue, due to greater
collections associated with fines, fees and
permits. However, the increased
receipts
were partly mitigated by contractions in tax
flows on domestic goods and services. In
particular, accommodation tax receipts
declined by 71.8 per cent ($14.1m), while
stamp duties fell by 42.3 per cent ($6.7m)
compared with receipts in 2017. This outturn
was largely attributed to the downturn in
visitor arrivals in the first quarter as most
hotels were still recovering from the effects of
Hurricane Irma. In addition, the sale of villas
slowed relative to 2017. In a similar vein, the
tourism marketing levy receipts contracted by
58.0 per cent ($2.1m), consistent with the
decline in visitor arrivals. By contrast, tax
receipts for international trade and
transactions grew by 28.3 per cent ($21.3m),
with both the import duty and customs service
charge receipts increasing by about
28.0 per cent relative to the prior year. Much
of this outturn was associated with the high
volumes of construction-related materials
imported into the country as the private sector
ramped up renovations in time for the fourth
quarter tourism season. Earnings from taxes
on income and profits also rose ($0.9m),
consistent with the increase in the stabilisation
levy, as more persons regained employment in
the hospitality sector.
Current expenditure increased by 6.3 per cent
to $207.7m (25.5 per cent of GDP), compared
with growth of 4.1 per cent to $195.4m
(25.7 per cent of GDP) in 2017. This outturn
was primarily attributable to expansions in
outlays on interest payments, personal
emoluments and transfers and subsidies.
Interest payments increased by 28.8 per cent
($4.7m) to $21.1m, mainly attributable to a
larger stock of external debt, owing to two
new disbursements from the Caribbean
Development Bank (CDB), as well as an
interest rate resetting on CDB debt. Outlays