Montserrat’s economic growth accelerated by 5.5 per cent in 2025, mainly driven by expansion in the construction sector.
This was a key finding highlighted in the Eastern Caribbean Central Bank’s 2025 Economic and Financial Review for Montserrat.
In comparison, sector activity across the Eastern Caribbean Currency Union (ECCU) expanded at a measured pace, with a growth of 2.4%
According to the Review, Economic activity in Montserrat is projected to expand by 3.0 per cent and 2.2 per cent in 2026 and 2027, respectively. This is expected to be fuelled by construction sector activity, with support from tourism, despite ongoing access challenges, as well as other ancillary sectors.
The Review reports that Montserrat’s fiscal situation is expected to be broadly stable over the medium term. Based on past trends, the projection for continued economic expansion, and the commitment of the UK government to continue to fund the island’s key capital projects, the government is forecast to generate a primary surplus of 2.9 per cent of GDP in 2026 and 2027, respectively.
It is envisaged that the ongoing infrastructural development would attract greater foreign direct investment and lead to further diversification of the economy, ultimately generating greater tax revenue for the government and resulting in less dependence on official aid.
On the external front, Montserrat is expected to generate small current account deficits over the medium term as construction-related imports increase in line with ongoing infrastructural development.
The ECCB’s revised reports provide a comprehensive assessment of the countries’ recent performance and economic outlook. They also update the December 2025 Annual Economic and Financial Reviews by incorporating revised economic data for 2025 and revised projections for 2026 and 2027. The inclusion of revised 2025 data provides a more accurate assessment of economic performance and establishes an updated baseline for evaluating each country’s outlook.
More information from the 2025 Economic and Financial Review for Montserrat will be shared