PREFACE iv

REVIEW OF ECONOMIC ACTIVITY v

1. Gross Domestic Product by Economic Activity at Factor Cost in Current Prices, (EC$ Million) 1984 – 2001

2. Gross Domestic Product by Economic Activity, at Factor Cost in Constant 1990 Prices (EC$ Million) 1984 – 2001

3. Percentage Contribution of GDP by Economic Activity, at Factor Cost in Current Prices (EC$ Million) 1984 – 2001

4. Percentage Contribution of GDP by Economic Activity, at Factor in Constant 1990 Prices (EC$ Million) 1984 – 2001

5. Rate of Growth of Gross Domestic Product by Economic Activity, at Factor Cost in Current Prices 1985 - 2001

6. Rate of Growth of Gross Domestic Product by Economic Activity at Factor Cost in Constant Prices 1985 – 2001

7. Gross Domestic Product Price Deflators by Economic Activity at Factor Cost 1984 – 2001

7.1 Percentage Change in GDP Price Deflators 1985 – 2001

8. Index of Gross Domestic Product by Economic Activity at Factor Cost in Current Prices 1984 – 2001

9. Index of Gross Domestic Product by Economic Activity at Factor Cost in Constant 1990 Prices (EC$ Million) 1984 – 2001

10. Current Account of Central Government Revenue (EC$ ‘000) 1987 – 2001

11. Current Account of Central Government Expenditure (EC$ ‘000) 1987 – 2001

12. Current Account of Departmental Enterprises (EC$ ‘000) 1987 – 2001

13. Rate of Growth Central Government Recurrent Revenue 1988 – 2001

14. Rate of Growth Central Government Recurrent Expenditure 1988 – 2001

15. Rate of Growth of Departmental Enterprises 1988 – 2001

16. Current Account Revenue of Central Government as a Percentage of GDP 1987 – 2001

17. Current Account of Central Government Expenditure as a Percentage of GDP 1987 – 2001

18. Income and Outlay Account of Central Government at Current Prices (EC$ ‘000) 1987 - 2001

19. Capital Account of Central Government (EC$ ‘000) 1987 – 2001

20. Expenditure of G D P in Current Prices at Purchaser’ Values (EC$ ‘000) 1987 – 2001

21. Final Consumption Expenditure of General Government According to Cost Composition in Current Prices (EC$ ‘000) 1999

22. Final Consumption Expenditure of General Government According to Cost Composition in Current Prices (EC$ ‘000) 2000

23. Final Consumption Expenditure of General Government According to Cost Composition in CurrentPrices (EC$ ‘000) 2001

24. Gross National Disposable Income, Appropriation and Capital Finance (EC$ Million) 1990 – 2001

25. Selected Economic Indicators 1989 – 20001

The National Accounts Statistics is published every year by the Statistics Department of the Ministry of Finance, Economic Development, Investment and Commerce 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 officers within the Statistics Department with technical assistance 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 Benjamin of the Eastern Caribbean Central Bank for their technical advice and assistance in compiling these tables and also the dedication of Lori Rae Alleyne, Cheprene Browne and Deavene Guishard of the Statistics Department for ensuring that survey responses were received.

As the economy of Anguilla develops, there is a 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 Eastern Caribbean Central Bank and 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. Any suggestions that may assist us in improving the quality and content of future publications are welcome.

Penny Basset

Chief Statistician

iv

Economic activity, in 2001, rebounded from the previous year’s state of no growth (-0.3) to a real growth rate of 2%. Total economic activity, as measured by gross domestic product (GDP) at factor cost and in constant prices was EC$188 million compared to EC$184.5 million in 2000. GDP at factor cost and in current prices, was EC$240 million. With an estimated year-end population of 11,560 the real GDP per capita stood at EC$16,292, while per capita GDP in current prices stood at EC$20,750 or US$7,742. During the nineties, economic growth in constant prices averaged 5% per year.

In current prices GDP grew by 2.8% in 2001, 0.2% in 2000 and 11.3% in 1999. The corresponding annual growth rates in real terms for these years were 2.0%, -0.3% and 8.7% respectively. Inflation, as measured by the change in the Consumer Price Index (CPI) in 2001 was 2.9%, in 2000 6.5 % and 2.6 % in 1999.

Recovery of the Anguillian economy in 2001 was mainly due to improvement in the tourism sector, particularly during the first half of the year. Growth would have been even stronger were it not for the slowing of the US economy during the later months and the negative impact on travel of the destruction of the World Trade Centre on September 11th. In addition the Finance, Communications and Government sectors continued to exhibit healthy growth rates, which contributed to the overall positive growth rate of the economy in 2001.

On the down side, declines in output in the construction and retail sectors had a dampening effect upon the overall activity of the economy. These two sectors give a reflection of changes in personal incomes, which are not at present produced as part of the National Accounts.

Private consumption decreased 16% in 2001, which is also consistent with a decline in personal incomes. Overall Consumption decreased by a lesser percentage, 11%, due to an increase in Government consumption of 9%. Gross Fixed Capital Formation or investment spending mirrored the decline in domestic demand showing a decline of 28% over 2000.

In summary, were it not for the increase in government spending and strength of the tourism sector, the growth rate in 2002 would have been negative rather than positive 2%.

v

The tourism sector continued to be the largest contributing sector to overall economic activity and in fact increased its contribution from 28.4% in 2000 to 30.2% in 2001. The hotel and restaurants’ produced EC$72.54 million in current prices in 2001. The growth rate for hotels and restaurants was 9.5% compared to a decline of 6.4% in 2000. While the total number of visitors in 2001 was lower than in 2000, the decline was in sea visitors, which tend to be day excursionists. The number of visitors by air increased to 32,070, which is close to the record high in 1994. Visitors who travel by air are usually people who stay over in hotels and villas and stay longer, thus making a greater contribution to the economy than excursionists, cruise ship visitors or yachters.

 

Year	Air (Stay over)	Sea (Ferries 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
2001	32,070	72,900	104,970

Expenditure by visitors to Anguilla during 2001 was estimated at EC$164.7 million (US$61.0 million), up 10% from 2000 when it was estimated to be EC$149 million (US$55.2 million). Winter tourists spent on average US$220 daily compared to summer tourists who spent an average of US$159.

vi

Government services continued to be the second most significant industry sector contributing EC$41.7 million or 17.4% to GDP in 2001.This represented a nominal increase of 10.6% from 2000 or 6.8% in real terms. Government current expenditures grew by 9.4% while revenues declined for the second year in a row. The resulting deficit on the current account was EC$$7.2 million. The main contributors to the decline in government revenues were the increased deficit created by Departmental Enterprises and the decrease in import duties.

Growth in current expenditure continued although the rate of increase, at 9.4% was less than the previous year. Outlays on personal emoluments increased 7% although wages in the public sector remained unchanged in 2001. Pensions and gratuities increased 24%.

Banking and insurance continued to grow and to become a more significant contributor to GDP reflecting the importance of this sector to overall economic performance. In current dollars the banking and insurance industry contributed EC$38.3 million or 16% to GDP in 2001. There are four commercial banks and four insurance companies operating in Anguilla. There are a number of companies who operate as insurance agents and brokers. Banks and insurance output increased 5.6% in constant prices, down from 25.7% in 2000. Net assets of Commercial Banks stood at $86.4 million in the 4th quarter of 2001.

During the year 2001, the broad money supply as measured by M2 expanded by 12% compared to a 6% increase for the ECCB region as a whole. Domestic credit expanded by 6% following an increase of 28% in 2000. Increased credit to households slightly outpaced that of credit to businesses at 10% compared to a 4% increase in credit to business.

The importance of the construction sector to the economy in 2001 continued to decline as no new major projects were started in 2001. Construction contributed EC$29.78 million or 12.4% to GDP in 2001 compared to a high of 17% in 1999. This reflected a decline of 19.1% in current and constant prices over 2000. However the level of construction activity was still higher than the years prior to 1998.

viiviiipublication

During 2001, government construction expenditure declined by 5%, which contributed to the decline but private sector construction expenditure, declined at a faster rate than government.

Activity within the communications sector continued to grow in 2001 by 7.0% in current terms or 6.8% in real terms. This rate was slightly lower than the annual average for the decade of the nineties of 7.8%. The communications sector represents EC$23 million or 9.6% of GDP. In Anguilla Cable and Wireless, which holds a monopoly in the telecommunications industry, dominates the communications sector.

Wholesale and retail trade activity slowed in 2001 reducing its contribution to GDP from 8.4% in 2000 to 7.6% in 2001. Total economic activity of this industry was EC$19 million in the year 2001, which was an increase of 7% compared to 2000. 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 quarrying and transport also contracted in real terms 2001 by 10.1% and 4.2% respectively. The quarrying industry’s poor performance is a result of the weakening of the construction industry. Sea transportation was affected by the decline in day-trippers to Anguilla from St. Martin.

Crop production continued to recover in 2001 after hurricane damage in 1999. Livestock and fishing continued to show some improvement resulting in an overall increase in output of the agricultural sector in real terms of 3.9%. Utilities continued to show positive growth in 2001 growing by 14.8% in real terms. All other industry sectors experienced positive economic growth in 2001.

Publication