Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review ANTIGUA AND BARBUDA

disbursed to non-bank financial institutions (5.2 per cent). The net credit position of Non- Financial Public Enterprises fell by 28.7 per cent to $36.2m as the growth in deposits (30.8 per cent) outpaced the increase in borrowing (15.4 per cent). The net credit position of general government increased by 4.6 per cent to $393.3m as government drew down on its deposits in the banking system by $31.4m to reduce its loans obligations by $14.2m and finance its operations. The outstanding stock of banking sector credit allocated to economic sectors, indicated that credit more than doubled for construction and expanded for entertainment and catering (21.6 per cent); tourism (19.8 per cent); professional and other services (15.2 per cent); distributive trades (9.4 per cent); transportation and storage (4.0 per cent); and personal loans (1.1 per cent). The personal credit category, which accounted for 47.7 per cent of total outstanding loans, reported increases in loans allocated towards durable consumer goods (8.5 per cent) and other miscellaneous personal loans (4.5 per cent). Meanwhile, loans outstanding for home construction and renovation, and house and land purchase fell by 1.8 per cent and 0.8

Money supply (M1), the second component of M2, rose by 4.7 per cent ($43.4m) to $968.6m as currency with the public and private sector demand deposits expanded by 6.8 per cent ($11.9m) and 4.7 per cent ($33.5m), respectively. However, this was tempered by a 6.0 per cent ($2.0m) reduction in EC$ cheques and drafts issued. The stock of domestic credit in the banking system rose by 1.6 per cent to $2,360.6m during 2018, reversing the marginal contraction of 0.5 per cent recorded in 2017. This upward movement in domestic credit was principally the result of a 1.8 per cent ($33.4m) advancement in credit granted to the private sector. On a disaggregated level, loans extended to households and businesses rose 1.3 per cent and 3.2 per cent, respectively, while there was a fall in credit

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