Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

MONTSERRAT

were machinery and transport equipment and miscellaneous manufactured articles.

by-pass road. One of the major projects, which is expected to drive growth in 2019, is the Little Bay Port development. Phase one (1) is expected to start in the third quarter of 2019 and will include the construction of breakwater, safe docking and mooring facility to cater for cruise and cargo vessels. On the downside, given that capital projects are 100 per cent grant funded by the Government of the UK, the political uncertainty surrounding the Brexit negotiations and the macroeconomic implications for the UK economy could affect budgetary allocations and hence the implementation of the capital projects. In addition, any appreciation of the Sterling against the EC dollar would adversely affect the level of budgetary support received by the Government of Montserrat, since they receive a fixed amount annually. The tourism industry is likely to improve in 2019 as the number of cruise ships calls is projected to increase in 2019 . Enhanced access and more aggressive marketing, is also expected to further increase in the number of stay-over visitors and the rebound in excursionists and yacht passengers to the country should be sustained in 2019. In addition, a full slate of activities is scheduled to take place on St Patrick’s Day. These

Developments on the services account were influenced by an increase in stay-over arrivals, which translated into a 32.9 per cent expansion in gross travel receipts to $30.1m. Commercial bank activity resulted in a net outflow of $6.9m during 2018, in contrast to a net inflow of $9.5m during 2017. Additionally, total grant inflows declined by 10.3 per cent to $82.1m. The economy of Montserrat is projected to expand by 1.1 per cent in 2019 as the performance of key economic drivers is expected to improve. The expansion in construction activity in 2018 is expected to continue in 2019, with the implementation of maintenance and other infrastructural projects addressing road works, social housing, water supply and drainage. The government has also announced a few public sector projects namely; construction of a new air traffic control tower; refurbishment of the Golden Years’ home; repairs to the roof and external canopies of the Montserrat Port Authority’s (MPA) ferry terminal and Carr’s Bay Bridge Outlook

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