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2018 Annual Economic and Financial Review
ANGUILLA
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Eastern Caribbean Central Bank
in commercial banks’ external assets. Growth
in the net foreign asset position was mitigated
by a 14.2 per cent decline ($29.3m) in
Anguilla’s imputed share of the ECCB’s
reserves, coupled with increases in liabilities
held within the ECCU ($26.1m) as well as
those held externally ($24.9m).
Liquidity in the commercial banking system
improved during the review period.
This
was evidenced by a 6.3 percentage point
increase to 50.9 per cent in the ratio of liquid
assets to total assets, coupled with a
7.7 percentage point increase to 57.4 per cent
in the ratio of liquid assets to short-term
liabilities. Commercial banks’ asset quality
declined marginally over the review period,
with the nonperforming loans (NPL) ratio
rising to 24.3 per cent from 23.5 per cent in
2017.
External Sector Developments
Anguilla is estimated to have generated a
merchandise trade deficit of $775.4m
(95.1 per cent of GDP) in 2018,
representing a widening of 66.7 per cent
($310.2m) relative to the deficit recorded
one year earlier.
The expansion of the merchandise trade deficit
was mainly influenced by a larger growth in
import payments relative to that of export
receipts. Total import payments increased by
65.4 per cent ($312.1m), compared with a
decline of 8.8 per cent ($46.1m) one year
earlier. These payments more than offset the
growth in export receipts of 15.5 per cent
($1.9m). Gross travel receipts are estimated
to have declined by 24.2 per cent ($90.1m) to
$281.6m , as both stay-over arrivals and the
number of excursionists fell, consistent with
the lack of capacity on island, coupled with a
contraction in cruise ship calls to St Maarten,
the key hub for excursionists to Anguilla.
Commercial banks’ transactions resulted in a
net outflow of $80.2m in short term capital,
mainly reflecting repatriation of profits,
compared with an outflow of $5.5m during
2017. The government of Anguilla received
$40.4m in external disbursements, primarily
from the CDB for budget support. The