ECCB Forecasts Modest Economic Growth for Montserrat

Montserrat’s economy will experience modest growth in 2021.

That’s according to the latest forecast by the Eastern Caribbean Central Bank.

In its economic and financial review the bank says preliminary data indicate that the economy of Montserrat contracted by 8.5 per cent in 2020 in contrast to growth of 5.9 per cent in the previous year.

Projections for 2021 point to a modest recovery, although uncertainties persist due to the evolving nature of the COVID-19 pandemic.

The Montserrat economy was severely impacted by the global pandemic in 2020, as the pace of major construction activities slowed, compounded by a collapse of visitor arrivals and reduced consumer spending.

Value added in the construction sector, which accounted for 4.3 per cent of GDP, fell by 25.0 per cent, as the lock down delayed private sector projects.

However, this development was partly mitigated by a 71.7 per cent increase public sector investment.