Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

DOMESTIC ECONOMIC DEVELOPMENTS

reflected a 60.0 per cent decline in the number of excursionists to Anguilla, as ongoing efforts to improve interconnectivity with St Martin, post- hurricane Irma, are progressing relatively slow. Spill-over effects from increased construction and tourism activity are estimated to have contributed favourably to value added in sectors such as mining and quarrying (8.9 per cent), wholesale and retail trade (7.2 per cent) and transport, storage and communications (4.9 per cent). Performance was relatively favourable in a few of the other economic sectors, including health and social work (3.3 per cent), real estate, renting and business activities (1.7 per cent) and financial intermediation (1.3 per cent). Value added in the manufacturing sector of the Currency Union advanced by an estimated 4.5 per cent, after contracting by 1.4 per cent in 2017. Seven member countries are estimated to have recorded elevated manufacturing activity, which more than offset a 25.0 per cent contraction in Dominica, following closure of its main brewery destroyed by hurricane Maria. Manufacturing activity turned around in Anguilla and St Kitts and Nevis to register growth of 40.0 per cent and 3.0 per cent, respectively, following declines in the

The Caribbean, the second biggest source market, continued its path of expansion and recorded an accelerated growth rate of 3.1 per cent, relative to last year’s increase of 1.5 per cent. Additionally, expansions of 15.8 per cent and 0.8 per cent were observed in arrivals from Canada and UK, respectively. Six of the ECCU territories experienced growth, averaging 4.7 per cent, in stay-over arrivals. These increases ranged from a slight pick-up in Montserrat (0.1 per cent) to 10.0 per cent in Grenada. Of the other categories of visitors, the number of yacht passengers grew by 9.6 per cent to 174,515, in contrast to a decline of 0.9 per cent recorded last year. Yachting activity was on the rise in four territories, predominantly in Saint Lucia, where the annual yacht regatta continues to do well. On the contrary, the number of excursionists fell by 49.0 per cent, following an 18.0 per cent contraction, one year prior. This outturn

______________________________________________________________________________ 5 Eastern Caribbean Central Bank