Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

ANGUILLA

for personal emoluments also increased by 4.9 per cent ($4.1m) to $87.9m, as 30.0 per cent of deferred salaries, dating back to the 2010 salary suspensions, were paid. In addition, transfers and subsidies grew by 4.4 per cent ($2.0m) to $48.4m, as did outlays on goods and services, which rose by 3.0 per cent ($1.5m) to $50.2m. Capital expenditure recorded a 13.4 per cent increase to $24.4m (3.0 per cent of GDP) relative to the $21.5m outlay (2.8 per cent of GDP) in 2017. The larger capital outlays were primarily associated with ongoing reconstruction work on key infrastructure following the passage of hurricane Irma. Capital expenditure was mainly supported by grant inflows, which grew by 12.0 per cent to $34.2m. The total disbursed outstanding public sector debt stood at $525.2m at the end of 2018, representing an increase of 1.6 per cent ($8.1m) relative to the levels recorded at the end of 2017. As a percentage of GDP, the debt ratio fell to 64.4 per cent from 68.1 per cent one year prior, as amortization continued apace, coupled with growth in GDP. Central government debt accounted for 98.4 per cent of total disbursed

outstanding debt, while that of statutory bodies represented the remaining 1.6 per cent. Further, domestic debt represented 58.2 per cent of total debt, while external debt accounted for 41.8 per cent.

Banking Sector Developments

Monetary liabilities (M2) expanded by 2.0 per cent to $1,056.5m during 2018, down from a 2.5 per cent increase to $1,036.0m during 2017.

Growth in M2 was influenced by expansions in both quasi money and narrow money (M1). As it relates to quasi money, expansions were recorded in private sector foreign currency deposits ($14.2m) and savings deposit ($5.2m). However, this expansion was

______________________________________________________________________________ 26 Eastern Caribbean Central Bank