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2018 Annual Economic and Financial Review
MONTSERRAT
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Eastern Caribbean Central Bank
narcotics (2.2 per cent) sub-indices.
However, the increase in the general price
level was tempered by decreases in the sub-
indices for recreation and culture
(1.7 per cent), clothing and footwear
(1.6 per cent) and household furnishings,
supplies and maintenance (1.5 per cent).
Survey based labour market conditions data
were unavailable for the period under review,
however information from the Social Security
System provided useful proxy metrics to
gauge developments. Preliminary data
available as at end September 2018 indicated
that the number of persons employed
increased, by 0.4 per cent in 2018 to 2002
from 1995 as at the end of December 2017.
The number of self-employed persons
declined by 5.0 per cent to 266 as at end
September 2018 from 280 in the comparable
period of 2017.
Fiscal and Debt Developments
The fiscal operations of the central
government deteriorated in 2018 relative to
2017, due to an increase in recurrent
expenditure.
The overall balance (after grants) recorded a
deficit of $10.9m (6.6 per cent of GDP) in
contrast to a surplus of $1.9m (1.2 per cent of
GDP) in the prior year. Consequently, the
primary balance after grants registered a
deficit of $10.9m (6.5 per cent of GDP), in
contrast to a surplus of $1.9m (1.2 per cent of
GDP) in 2017. The current account (after
grants) also recorded a deficit of $1.5m
(0.9 per cent of GDP), in contrast to a surplus
of $5.4m (3.4 per cent of GDP) in 2017.
These fiscal developments were mainly
influenced by higher levels of recurrent
expenditure, which outpaced the estimated
growth in current revenue.
Current expenditure increased by 9.9 per cent
to $129.8m (77.3 per cent of GDP), in
comparison to an increase of 3.4 per cent to
$118.1m (78.3 per cent of GDP). This outturn
was primarily due to a 12.9 per cent ($5.7m)