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2018 Annual Economic and Financial Review
DOMINICA
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51
Eastern Caribbean Central Bank
an 8.0 per cent contraction in the debt of
public corporations to $155.5m, reflecting a
fall in the debt owed to their external
(10.4 per cent) and domestic (4.5 per cent)
creditors. With regard to central government
debt, the increase in its domestic debt
(13.8 per cent) more than offset the decline in
its external obligation (4.5 per cent), resulting
in an overall increase of 0.8 per cent.
Banking Sector Developments
Monetary liabilities (M2) grew by
1.4 per cent to $1,651.1m at the end of
2018, compared with an increase of
18.4 per cent at the end of 2017.
The
expansion in M2 was driven by growth in both
quasi money, the larger component of M2,
and narrow money. Quasi money rose by
1.2
per
cent
to
$1,204.3m, reflecting growth in private sector
foreign currency deposits (23.5 per cent) and
private sector savings deposits (2.2 per cent).
However, this increase was moderated by a
decline in private sector time deposits
(5.9 per cent). Growth in monetary liabilities
was also supported by a 2.0 per cent expansion
in narrow money to $446.8m, associated with
a rise in currency with the public
(24.8 per cent), but tempered by decreases in
EC$ Cheques and Drafts Issued
(14.2 per cent) and private sector demand
deposits (2.4 per cent).
Domestic credit rose by 71.5 per cent to
$617.5m, largely reflecting developments in
the public sector, as private sector credit
declined.
The net deposit position of the central
government fell by 85.1 per cent to $48.1m,
as the government drew down on its deposits
and was simultaneously extended more credit,
partially to support public sector
reconstruction and recovery efforts. Growth
in domestic credit was however moderated by
a contraction in credit extended to the private
sector and an increase in the net deposit
position of non-financial public enterprises.
Private sector credit declined by 1.5 per cent
to $773.1m, reflecting decreases in credit to