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2018 Annual Economic and Financial Review
GRENADA
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Eastern Caribbean Central Bank
led to a reduction in the public sector debt
stock.
The total outstanding debt of the public
sector decreased to $2,097.3m (64.3 per cent
of GDP) at the end of 2018, down from
$2,119.2m (69.7 per cent of GDP) at the end
of 2017.
The central government total debt stock fell by
1.4 per cent to $1,971.1m due to a reduction
in domestic debt. Central government
domestic debt contracted by $100.2m to
$495.7m because of scheduled amortization
payments; the retirement of Government’s
Series A 91-day Treasury Bills on the
Regional Government Securities Market
(RGSM), and a reclassification of investors
based on residency. Meanwhile, central
government external debt rose by $72.5m to
$1,475.3m reflecting disbursements from the
Caribbean Development Bank and the World
Bank. In contrast, the debt position of public
corporations increased by $5.8m to $126.2m
at the end of 2018.
Banking Sector Developments
Monetary liabilities (M2) rose by
5.9 per cent to $2,368.9m during 2018,
above the 4.0 per cent growth registered in
2017.
This expansion was primarily driven by
growth of 12.4 per cent ($77.2m) to $702.3m
in narrow money supply (M1). Of the
components of M1, private sector demand
deposits recorded strong growth of
18.7 per cent while there were contractions in
currency with the public (5.0 per cent) and
EC$ Cheques and Drafts Issued
(12.6 per cent). Quasi money also advanced
by 3.4 per cent ($55.4m) to $1,666.6m over
the review period. Growth of 4.0 per cent in
private sector savings deposits and
17.3 per cent in private sector foreign
currency deposits, more than compensated for
a contraction of 11.4 per cent in private sector