Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

MONTSERRAT

contributed positively to the increased level of economic activity in 2018 were fishing (35.0 per cent); mining and quarrying (15.0 per cent); education (10.8 per cent); wholesale and retail trade (8.0 per cent); electricity and water (2.5 per cent); manufacturing (2.0 per cent); health and social work (1.8 per cent) and financial intermediation (1.0 per cent). These sectors combined contributed 32.0 per cent of GDP. The overall increase in real output was also moderated by a decline of 1.0 per cent in the public administration, defence and compulsory social security sector, which contributes over one-third of total GDP on average, and a reduction of 8.9 per cent in agriculture, livestock and forestry sector. The rate of inflation rose by 2.4 per cent, on an end of period basis compared with 1.7 per cent in 2017. The growth in inflation was largely associated with a 3.5 per cent increase in the housing, utilities, gas and fuels sub-index. Higher prices were also reflective of upward movements in the transport (3.4 per cent), communication (3.4 per cent) and alcoholic beverages, tobacco and Prices, Wages and Employment

However, this improved performance was partly tempered by a decline in the number of cruise ship passengers by 39.8 per cent (2,834 persons) to 4,294 persons. Value added by dependent tourism-related services sectors also increased; namely the transport, storage and communications (5.0 per cent); and the real estate, renting and business activities (1.5 per cent). The construction sector, which contributed 3.9 per cent to GDP, increased by 5.0 per cent in 2018 in contrast to a decrease of 32.7 per cent in 2017. The improved activity in this sector was attributable to an increase in private sector activity, evidenced by an expansion of credit of $5.9m during the period under review. A deceleration in public sector activity, as reflected in a $2.7m decline capital spending, provided a partial counter to the overall expansion. Other sectors that

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