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2018 Annual Economic and Financial Review ANTIGUA AND BARBUDA
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Eastern Caribbean Central Bank
per cent, respectively. Those increases were
tempered by declines in credit outstanding for
utilities, electricity and water (4.3 per cent)
and public administration (1.6 per cent).
The net foreign assets of the banking system
rose by 13.8 per cent to $1,793.0m during
2018, much lower than the pace of growth
recorded during 2017 of 28.6 per cent. The
augmentation observed was largely the result
of an expansion in commercial banks net
foreign assets, which rose by 24.2 per cent
($176.3m) to $906.1m, as banks increased
their holdings with head offices and other
branches. The growth in NFA also reflected
a 4.8 per cent increase in Antigua and
Barbuda’s share of the Central Bank’s imputed
reserves to $886.9m, mainly on account of a
higher level of banker’s reserves.
Commercial banks remained highly liquid
during the period under review, with the total
loans and advances to deposit ratio at
65.7 per cent, significantly below the
prudential benchmark of 85.0 per cent. In
addition, the ratio of liquid assets to total
deposits plus liquid liabilities increased to
64.5 per cent from 63.8 per cent in 2017.
Noting the 5.0
per cent prudential limit, the non-performing
loans ratio continued to trend downwards to
6.4 per cent at the end of December 2018 from
7.9 per cent at the end of December 2017.
External Sector Developments
Based on preliminary data, external sector
transactions resulted in a larger trade
deficit of $1,779.7m (39.9 per cent of GDP)
at the end of 2018, from $1,440.2m
(35.3 per cent of GDP) in 2017.
The larger trade deficit resulted from a higher
import bill consistent with buoyant activity in
the construction sector and the tourism
industry. Import payments rose by
22.7 per cent ($338.9m) to $1,835.4m, from
$1,496.5m in 2017. Substantial increases in
the importation of mineral fuels, lubricants
and related materials; food and live animals;
manufactured goods; machinery and transport