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2018 Annual Economic and Financial Review
MONTSERRAT
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Eastern Caribbean Central Bank
were machinery and transport equipment and
miscellaneous manufactured articles.
Developments on the services account were
influenced by an increase in stay-over
arrivals, which translated into a 32.9 per cent
expansion in gross travel receipts to $30.1m.
Commercial bank activity resulted in a net
outflow of $6.9m during 2018, in contrast to
a net inflow of $9.5m during 2017.
Additionally, total grant inflows declined by
10.3 per cent to $82.1m.
Outlook
The economy of Montserrat is projected to
expand by 1.1 per cent in 2019 as the
performance of key economic drivers is
expected to improve.
The expansion in
construction activity in 2018 is expected to
continue in 2019, with the implementation of
maintenance and other infrastructural projects
addressing road works, social housing, water
supply and drainage. The government has
also announced a few public sector projects
namely; construction of a new air traffic
control tower; refurbishment of the Golden
Years’ home; repairs to the roof and external
canopies of the Montserrat Port Authority’s
(MPA) ferry terminal and Carr’s Bay Bridge
by-pass road. One of the major projects,
which is expected to drive growth in 2019, is
the Little Bay Port development. Phase one
(1) is expected to start in the third quarter of
2019 and will include the construction of
breakwater, safe docking and mooring facility
to cater for cruise and cargo vessels. On the
downside, given that capital projects are
100 per cent grant funded by the Government
of the UK, the political uncertainty
surrounding the Brexit negotiations and the
macroeconomic implications for the UK
economy could affect budgetary allocations
and hence the implementation of the capital
projects. In addition, any appreciation of the
Sterling against the EC dollar would adversely
affect the level of budgetary support received
by the Government of Montserrat, since they
receive a fixed amount annually.
The tourism industry is likely to improve in
2019 as the number of cruise ships calls is
projected to increase in 2019
.
Enhanced
access and more aggressive marketing, is also
expected to further increase in the number of
stay-over visitors and the rebound in
excursionists and yacht passengers to the
country should be sustained in 2019. In
addition, a full slate of activities is scheduled
to take place on St Patrick’s Day. These