Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review ANTIGUA AND BARBUDA

Canada and LIAT, and more strategic marketing and destination branding. The performance in 2018 reversed the contractions that took place in major regions such as the USA and the Caribbean. Stay over arrivals from the USA, the major source market, advanced by 8.1 per cent, after declining by 11.3 per cent in 2017. The number of visitors from the Caribbean grew by 0.9 per cent reversing the decline of 5.7 per cent in 2017 while the Canadian market recorded exponential growth of 66.1 per cent. Meanwhile, the number of stay over arrivals from the UK fell by 0.1 per cent, a slower pace than the 7.6 per cent fall reported in 2017, symptomatic of the uncertainty regarding Brexit and the corresponding depreciation of the pound. Yacht passengers, which make a significant contribution to overall tourism value added, declined by 3.5 per cent to 18,855. This is in contrast to the growth rate of 6.6 per cent recorded in 2017. Higher levels of air and sea passenger arrivals, a substantial increase in total volume of general cargo (389 per cent) and stronger domestic consumption propelled growth in the ensuring ancillary sectors. The wholesale and retail trade sector grew by an estimated 6.3 per cent relative to an increase of

0.9 per cent in 2017. Similarly, value added in the transport, storage and communications sector rose at a rate of 9.3 per cent, above the rate of growth of 2.5 per cent in 2017. The real estate, renting and business activities sector also expanded by 7.2 per cent, more than doubling the rate of growth obtained in 2017. These sectors together contributed 37.7 per cent to real GDP in 2018. The public administration defence and social security sector, which contributed 9.0 per cent to real GDP, advanced by 2.2 per cent in 2018, doubling the rate of growth recorded in 2017. This was on account of a 5.0 per cent salary increase, back pay and retroactive payments and new hirings. Other increases in real value added were recorded for agriculture, livestock and forestry (3.2 per cent); electricity and water (2.4 per cent); health and social work (2.2 per cent); education (2.1 per cent); fishing (2.0 per cent); financial intermediation (2.0 per cent); and manufacturing (0.5 per cent).

______________________________________________________________________________ 35 Eastern Caribbean Central Bank