Annual Economic and Financial Review -December 2018

A N G U I L L A

Overview

1.4 per cent during the previous year. The fiscal operations of the central government resulted in a smaller overall surplus, relative to the one achieved in 2017. With respect to debt, the disbursed outstanding public sector obligations increased, largely on account of an expansion in external debt. In the banking system, net foreign assets, monetary liabilities and liquidity increased while domestic credit declined. Economic activity is expected to be robust in 2019 on the back of a buoyant tourism sector, as all the major hotels and villas

Economic activity in Anguilla is estimated to have expanded by 1.9 per cent in 2018 in contrast to a contraction of 7.7 3 per cent in 2017. The growth in economic output was primarily attributable to expansions in major sectors including construction and wholesale and retail trade. However, the growth outturn was tempered by contractions in hotels and restaurants, fishing, electricity and water, and financial intermediation. Consumer prices fell by 0.4 per cent during 2018, on an end of period basis, following an increase of

______________________________________________________________________________ 20 Eastern Caribbean Central Bank 3 In keeping with international standards, the ECCB updated the terminology used to describe economic activity in the ECCU. Accordingly, the Bank now reports real change in the economy using real Gross Domestic Product (GDP) at market prices and not Gross Value Added (GVA) at basic prices as used in previous reports of the Annual Economic and Financial Review (AEFR). However, GVA will remain applicable for output by sector