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2018 Annual Economic and Financial Review
ANGUILLA
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Eastern Caribbean Central Bank
government also made external principal
payments totalling $13.0m, marginally below
the payment of $13.2m in the prior year. At
end 2018, public sector external debt stood at
26.9 per cent of GDP, compared with a ratio
of 25.5 per cent as at December 2017.
Outlook
Based on the January 2019 update of the
International Monetary Fund’s (IMF)
World Economic Outlook, the global
economy is projected to grow by
3.5 per cent and 3.6 per cent in 2019 and
2020, respectively.
Importantly, economic
growth for the United States of America,
Anguilla’s largest trading partner, is expected
to decelerate to 2.3 per cent in 2019, from the
estimated 2.9 per cent growth in 2018. A
slowdown in growth is also projected for some
of Anguilla’s other key trading partners in
2019 including the Euro area (1.3 per cent)
and Canada (1.5 per cent). While economic
headwinds associated with Brexit remain for
the United Kingdom, early output projections
reflect some marginal strengthening to
1.5 per cent in 2019, relative to the estimated
1.4 per cent expansion recorded in 2018.
Given the global projections for 2019,
growth in the Anguillan economy is
expected to accelerate, powered by the
tourism sector as room stock returns to
normal levels and air access issues improve.
Already, all of the major hotels have reopened
for business and are recording high advanced
booking rates. In addition, most of the major
US airlines have increased airlift into the
Princess Juliana International Airport in
St Maarten, facilitating access to the island.
In the public sector, major works are expected
to be ramped up in 2019, including the
rebuilding of the Blowing Point Ferry
Terminal, ongoing renovation of the Clayton
J Lloyd International Airport and the Princess
Alexandra Hospital, and the construction of
new primary and secondary schools. Support
for Anguilla’s recovery is also anticipated
from a still strong US economy, as the labour
market remains vibrant and the demand for
leisure increases.
Inflationary pressures are expected to
remain contained
, as the volatility of oil
prices on the global market lessen and
stabilises at a level below that recorded in
2018. Supply factors are likely to be the main
driving force influencing developments over
the near term. In particular, the level of