2000
Prepared by
Statistical Unit, Ministry
of Finance
August 2001
Page
PREFACE iv
REVIEW OF ECONOMIC ACTIVITY v
1. Gross Domestic Product by Economic
Activity at Factor Cost in Current Prices, (EC$ Million) 1984 – 2000 1
2. Gross Domestic Product by Economic
Activity, at Factor Cost in Constant 1990 Prices (EC$ Million) 1984 – 2000 2
3.
Percentage
Contribution of GDP by Economic Activity, at Factor Cost in Current Prices (EC$
Million) 1984 – 2000 3
4. Percentage Contribution of GDP by
Economic Activity, at Factor in Constant 1990 Prices (EC$ Million) 1984 –
2000 4
5. Rate of Growth of Gross Domestic
Product by Economic Activity, at Factor Cost in Current Prices 1985 - 2000 5
6. Rate of Growth of Gross Domestic
Product by Economic Activity at Factor Cost in Constant Prices 1985 – 2000 6
7. Gross Domestic Product Price Deflators
by Economic Activity at Factor Cost 1984 – 2000 7
8.
Index
of Gross Domestic Product by Economic Activity at Factor Cost in Current Prices
1984 – 2000 8
9. Index of Gross Domestic Product by
Economic Activity at Factor Cost in Constant 1990 Prices (EC$ Million) 1984 –
2000 9
10. Current Account of Central Government
Revenue (EC$ ‘000) 1987 – 2000
10
11. Current Account of Central Government
Expenditure (EC$ ‘000) 1987 – 2000
11
12. Current Account of Departmental
Enterprises (EC$ ‘000) 1987 – 2000
12
13. Rate of Growth Central Government
Recurrent Revenue 1988 – 2000
13
14. Rate of Growth Central Government
Recurrent Expenditure 1988 – 2000 14
15. Rate of Growth of Departmental
Enterprises 1988 – 2000
15
16. Current Account Revenue of Central
Government as a Percentage of GDP 1987 – 2000 16
17. Current Account of Central Government
Expenditure as a Percentage of GDP 1987 – 2000 17
18. Income and Outlay Account of Central
Government at Current Prices (EC$ ‘000) 1987 - 2000 18
19. Capital Account of Central Government (EC$ ‘000) 1987 –
2000 19
20.
Expenditure
of G D P in Current Prices at Purchaser’ Values (EC$ ‘000) 1987 –
2000 20
21. Final Consumption Expenditure of General
Government According to Cost Composition in Current Prices (EC$ ‘000) 1998
21
22.
Final
Consumption Expenditure of General Government According to Cost Composition in
Current Prices (EC$ ‘000) 1999 22
23.
Final
Consumption Expenditure of General Government According to Cost Composition in
Current Prices (EC$ ‘000) 2000 23
24.
Gross
National Disposable Income, Appropriation and Capital Finance (EC$ Million)
1990 – 2000 24
25. Selected Economic Indicators 1989 – 2000 25
The National
Accounts Statistics is produced every year by the Statistical Unit of the
Ministry of Finance and Economic Development in collaboration with the Eastern
Caribbean Central Bank. It is based on
the results of questionnaires mailed to businesses with employees within
relevant sectors. Tables are prepared
and revised every year by an officer within the Statistical Unit with technical
expertise from the Eastern Caribbean Central Bank.
I would like to take this opportunity to thank all those
business people who took time out to complete the survey questionnaires mailed
to them. Without their cooperation it would be impossible to produce this
publication. I would also like to thank Hazel Corbin and Seana Banjamin of the
Eastern Caribbean Central Bank for their technical advice and assistance in
compiling these tables and also the dedication of Charmaine Fleming of the
Statistical Unit ensuring that survey responses were received.
As the economy of Anguilla develops, there is
greater need for more reliable, accurate and timely economic statistics. These statistics can only be prepared with
the support of the private sector. The
primary users of this information are the planners within the public
sector. We hope that the information
contained in this publication will benefit the economic and social planners as
well as the private sector. We hope that the users of the National Accounts
Statistics find this document useful.
Any suggestions that may assist us in improving the quality and content
of future publications are welcome.
Chief Statistician
REVIEW OF ECONOMIC ACTIVITY IN ANGUILLA IN 2000
Economic activity slowed in the year 2000 to a level slightly less than the previous year but still significantly higher than in 1998. Total economic activity, as measured by gross domestic product (GDP) at factor cost and in current prices, was EC$232.43 million, a decline of 0.2% compared to 1999. In previous years, economic growth generally has been strong. Total GDP grew by 11.3% in 1999 and 7.7% in 1998. Inflation, as measured by the change in the Consumer Price Index (CPI) in 2000 was the highest for the decade fueled by higher energy and water prices. Therefore in real terms, the economy contracted 0.7% compared to 1999 and 1998 when growth was 8.7% and 5.2% respectively.
Dampening of economic activity in 2000 was mainly due to the absence of any major construction projects. There was completion of a major hotel construction project in 1999 which put construction activity at a level 8.9% lower in 2000 than in 1999 in real terms. The tourism sector also saw a reduction in economic activity to a level similar to that of 1998 as one of Anguilla’s largest hotels was closed for most of the year to undertake repairs due to hurricane damage. Tourism and construction contribute close to half of the economy’s total activity at 44%. As a result, changes in economic activity in these sectors have a major impact on overall economic activity in Anguilla.
There was a strong increase of 25.7% in output by the banking industry in 2000. Loans and advances by banks increased in spite of a tightening of liquidity in the commercial banking system resulting in higher interest rates on deposits and increased profits for banks. Government services and banks are major contributors to GDP along with tourism and construction. Banks contributed 15.5% and government services 16.2% to GDP in 2000. Government services also grew in real terms in 2000 by 3.9% which together with the strength in the banking industry offset the declines in construction and tourism.
Increases in the export of goods, particularly concrete blocks, resulted in an increase in demand in the economy by 12.7% which offset the slight reduction in overall investment spending. Government’s current expenditures also contributed significantly to demand in the economy by increasing 34.3%. In the external sector, the current account deficit increased by 12.7% to EC$147.16 million. This was mainly due to a decline in the export of non-factor services which include tourist spending.
The tourism sector was the largest contributing sector to overall economic activity at 28.5% or EC$66.24 million. Output in this sector declined by 6.4% in current and constant dollars. While the total number of visitors in 2000 was higher than in 1999, reaching close to 1997 and 1998 levels. This increase was mainly due to more excursionists visiting Anguilla who do not stay overnight and therefore do not make a contribution to the hotel sector.
The number of visitors arriving by air, those who usually stay in villas or hotels, was close to 1999 levels but was still lower than in 1997 and 1998. While a new hotel started operating for the full 2000 season, another of Anguilla’s major hotels remained closed for most of the 2000 season offsetting the positive economic impact of the new hotel.
Visitors to Anguilla, 1990 - 2000
|
Year |
Air (Stay over) |
Sea (Ferrys and Yachts) |
Total Visitors |
|
1990 |
22,100 |
68,400 |
90,500 |
|
1991 |
22,400 |
68,140 |
90,540 |
|
1992 |
24,140 |
69,030 |
93,170 |
|
1993 |
28,720 |
82,630 |
111,350 |
|
1994 |
32,800 |
92,800 |
125,600 |
|
1995 |
29,500 |
77,600 |
107,100 |
|
1996 |
27,900 |
58,300 |
86,200 |
|
1997 |
32,600 |
81,200 |
113,800 |
|
1998 |
28,900 |
84,800 |
113,700 |
|
1999 |
28,540 |
78,190 |
106,730 |
|
2000 |
28,570 |
83,890 |
112,460 |
Government services overtook construction as the second most important industry sector contributing EC$37.73 million or 16.2% to GDP in 2000.This represented a nominal increase of 8.3% from 1999 or 3.9% in real terms. Government current expenditures grew by a third while revenues grew by 8.7% resulting in a deficit for the first time on the current account of EC$$1.46 million. The growth in current expenditure was largely driven by a 35% increase in outlays on goods and services. This increase was largely due to higher expenditures by the Water Department in relation to the purchase of water from a private supplier. Outlays on personal emoluments increased 8% although wages in the public sector remained unchanged in 2000 following a 10% increase in 1999.
Banking and insurance became a more important contributor to GDP than the construction sector in 1990 constant prices reflecting the importance of this sector to overall economic performance. In current dollars the banking and insurance industry contributed EC$35.93 million or 15.5% to GDP in 2000. There are four commercial banks and two insurance companies operating in Anguilla. There are a number of companies who operate as insurance agents and brokers. Banks and insurance output increased 25.7% in constant prices. This was the second largest annual increase in output; the previous largest increase was 40.9% in 1996. The average increase during the nineties was 8.7%.
During
the year 2000, the narrow money supply as measured by M1 expanded by 8.6%. This
expansion was a reflection of the higher rate of inflation and was due largely
to an increase in private sector current accounts and other demand deposits.
Domestic credit expanded by 28% following an increase of 36% in 1999. Increased
credit to households slightly outpaced that of credit to businesses at 28%
compared to a 24% increase in credit to business.
The importance of the construction sector to the economy in 2000 declined as the activity associated with the construction of a major hotel and villas was completed in 1999. Construction contributed EC$35.98 million or 15.5% to GDP in 2000. This reflected a decline of 8.8% in current prices and 8.9% in constant prices. However the level of construction activity was higher than each year during the nineties. Construction growth was strong during the decade of the nineties averaging 7.9% annually.
During
2000, government construction expenditure grew by 24.4% which offset the
decline in private construction expenditure. Major government construction was
associated with road construction and school building projects.
Activity within the communications sector continued to grow in 2000 by 8.7% in current dollars or 9.1% in real terms. This rate was higher than the annual average for the decade of the nineties of 7.8%. The communications sector represents EC$21.55 million or 9.3% of GDP. In Anguilla the communications sector is dominated by Cable and Wireless which holds a monopoly in the telecommunications industry.
Wholesale and retail trade continue to make an increasing contribution to GDP at 8.4% in 2000 compared to 7.6% in 1999. Total economic activity of this industry was EC$19.53 million in the year 2000 which was an increase of 10.0% compared to 1999. The retail sector is comprised mainly of 4 large supermarkets and car sales. There are many smaller retailers and shops catering to the tourist sector.
Output in agriculture and utilities also contracted in 2000 by 7.5% and 20.9% respectively. Crop production recovered in 2000 after hurricane damage in 1999 affected growth of crops. Livestock and fishing continued their decline in output. Utilities contraction was mainly due to the impact of increased water rates and increase costs for this industry. All other industry sectors experienced positive economic growth in 2000.