Anguilla’s economy contracted by 2.4% in 2018, even as construction activity surged. The impact of the passage of Hurricane Irma in 2017 was evident in the steep decline in tourism arrivals and in the Government of Anguilla’s (GOA) fiscal performance. The current, primary, and overall balances weakened. The fiscal imbalance was financed with an external loan and domestic resources. During the year, the debt level rose slightly and foreign assets dwindled. Overall consumer prices increased marginally and private sector borrowing contracted.
The economic outlook is positive with output projected to increase by 3.9% in 2019. The planned reconstruction of critical public infrastructure and the recovery of the tourism industry should drive economic growth. Although fiscal conditions are likely to improve as GOA’s tax administration strengthens, financing gaps are expected to remain in 2019.