Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review ANTIGUA AND BARBUDA

upside, land sales led to an increase in capital revenue to $28.2m from $10.8m in 2017. Capital expenditure totalled $78.0m (1.8 per cent of GDP), representing a 28.6 per cent increase relative to the 2017 total but way below budget estimates of $197.0m. The overall fiscal deficit was financed primarily through the accumulation of arrears ($76.8m), the issuance of treasury bills, and a drawdown of deposits from both commercial banks and the central bank totalling $29.4m. In nominal terms, the total disbursed outstanding debt of the public sector was estimated at $3,442.8m at the end of December 2018, up from $3,286.6m at the end of December 2017. However, as a percentage of GDP, total public sector debt contracted to 77.2 per cent from 80.6 per cent at the end of December 2017, as a result of an expansion in GDP. The debt stock of the central government, which comprised 82.5 per cent of the total debt stock, grew by 6.6 per cent to $2,839.4m. Central government domestic debt, which amounted to 49.0 per cent of the total, rose by $38.5m to $1,391.3m as the government issued a number of securities on the Regional Government Securities Market and Over the

Counter bonds, and increased borrowing from two local financial institutions. On the external side, central government debt increased by $137.0m to $1,448.6m reflecting new disbursements from the Caribbean Development Bank, the EXIM Bank of China and Treasury Bills. In contrast, the debt stock of public corporations declined by $19.3m to $603.0m reflecting a lower level of domestic debt (6.6 per cent) while external debt inched up marginally (1.5 per cent). During the period under review the central government continued to accumulate arrears to some Paris Club Creditors and local institutions, which added to the overall debt stock. Banking sector developments were broadly in line with the pace of economic activity and continued on an upward trend in 2018. Monetary liabilities (M2) grew by 6.3 per cent to $3,688.9m in 2018, from $3,470.1m in 2017. Quasi money, which is the largest component of M2, grew by 6.9 per cent to $2,720.3m, due to greater accumulation of private sector foreign currency deposits ($85.0m); private sector savings deposits ($45.7m); and private sector time deposits ($44.8m). Banking Sector Developments

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