Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

ANGUILLA

influenced by larger outlays for personal emoluments as well as goods and services. Public administration, defence and compulsory social security, accounted for 10.5 per cent of GDP in 2018. The transport, storage and communications sector, which contributed 8.8 per cent of GDP, recorded a 1.4 per cent increase in value added, in contrast to a decline of 14.2 per cent in 2017 . Within the subcomponents, activity in the transport and storage subsector expanded by 12.9 per cent, consistent with the increase in construction sector output, while that for the communications subsector contracted by 10.0 per cent as overall tourism activity fell. By contrast, value added in the financial intermediation sector, which contributed 7.1 per cent of GDP, declined by 2.9 per cent, on the heels of a 13.1 per cent contraction in 2017 . The outturn was largely influenced by the continued high level of prudence of commercial banks in extending credit as the Anguillan economy returns to stable growth. This development was characterized by a further decline in credit extended to the private sector over the review period.

hotel and villa capacity in the wake of hurricane Irma . Mitigating the downward movement in the numbers was an increase of 20.9 per cent in arrivals from the Caribbean, the second largest market. This development was partly influenced by the influx of temporary workers and consultants on the island in the aftermath of Hurricane Irma. The contribution of the hotels and restaurants sector to GDP fell to 16.3 per cent from 22.5 per cent in the prior year. The real estate, renting and business activities sector, which accounts for 15.0 per cent of GDP, and represents the second largest contributor to economic output, recorded no change in value added over the review period . Developments in this sector were characterized by a contraction in the renting of machinery and equipment, consistent with the decline in visitor arrivals. However, this decline was matched by marginal improvements in subsectors including real estate activities, business services and computer and related services. Value added in public administration, defence and compulsory social security, rose by 1.0 per cent as against a contraction of 0.1 per cent in 2017. The expansion was

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