Consistent with the decline in tourism activity, gross tourism
receipts fell by 2.2% to XCD141.4 million. External loan
disbursements rose during the period to XCD45.9 million,
significantly up from the XCD29.8 million for the comparable
period of 2012, while external debt payments declined
marginally by 1.6%.
The IMF projects growth of 1.3%
in 2013 and further growth of
2% in 2014, compared to output
expansion of 1.5% estimated
for 2012.
For the first half of 2013, St. Vincent and the Grenadine’s’
fiscal account recorded a slightly higher overall deficit of
XDC27.9 million, attributed to increased expenditure in
the capital account, as the current account registered a
narrower deficit. The current account deficit fell due to higher
current revenue alongside a decline in expenditure. Capital
expenditure however, rose to XDC40 million almost tripling
spending in the same period in 2012. The outturn of the fiscal
accounts resulted in a decline in the total public sector debt
by 3.1% to XCD1.3 billion, however, external debt rose by 3.9%
to XCD813 million as borrowing rose to finance the escalating
capital expenses.
Like the other ECCU economies, the growth prospects
of St. Vincent will be adversely impacted by the events
in the global markets as activity in most of the major
trading partner countries are still low, though showing
some stability. The IMF projects growth of 1.3% in 2013
and further growth of 2% in 2014, compared to output
expansion of 1.5% estimated for 2012. Although growth in
St Vincent and the Grenadines is expected to exhibit some
recovery in 2013, major downside risks to the projections
include unfavorable weather and continued uncertainty in
the US and Europe, which can lead to worse than expected
performance of the economy. The fiscal accounts are
expected to remain challenging, as the government is likely
to continue to inject funds to counter the slowing growth
while realizing lower revenues due to weak growth.
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