Montserrat: Economy#
Severe volcanic activity, which began in July 1995, has put a damper on this small, open economy. A catastrophic eruption in June 1997 closed the airport and seaports, causing further economic and social dislocation. Two-thirds of the 12,000 inhabitants fled the island. Some began to return in 1998 but lack of housing limited the number. The agriculture sector continued to be affected by the lack of suitable land for farming and the destruction of crops.Prospects for the economy depend largely on developments in relation to the volcanic activity and on public sector construction activity. Half of the island remains uninhabitable. In January 2013, the EU announced the disbursement of a $55.2 million aid package to Montserrat in order to boost the country's economic recovery, with a specific focus on public finance management, public sector reform, and prudent economic management.
Economic Facts#
| GDP (purchasing power parity) | $43.78 million (2006 est.) |
|---|---|
| GDP (official exchange rate) | $NA |
| GDP - real growth rate | 3.5% (2008 est.) |
| GDP - per capita (PPP) | $8,500 (2006 est.) |
| GDP - composition, by end use | household consumption: 88.7% government consumption: 50.2% investment in fixed capital: 20.3% investment in inventories: -0.1% exports of goods and services: 19.9% imports of goods and services: -79% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 1.6% industry: 21.8% services: 76.6% (2016 est.) |
| Agriculture - products | cabbages, carrots, cucumbers, tomatoes, onions, peppers; livestock products |
| Industries | tourism, rum, textiles, electronic appliances |
| Industrial production growth rate | 2% (2016 est.) |
| Labor force | 4,521 (2012) |
| Unemployment rate | 6% (1998 est.) |
| Population below poverty line | NA% |
| Household income or consumption by percentage share | lowest 10%: NA% highest 10%: NA% |
| Budget | revenues: $37.04 million expenditures: $37.04 million (2016 est.) |
| Fiscal year | 1 April - 31 March |
| Inflation rate (consumer prices) | 0.5% (2016 est.) -1.1% (2015 est.) |
| Central bank discount rate | 10.99% (31 December 2010) 6.5% (31 December 2009) |
| Commercial bank prime lending rate | 8.2% (31 December 2016 est.) 7.82% (31 December 2015 est.) |
| Stock of narrow money | $18.91 million (31 December 2016 est.) $17.64 million (31 December 2015 est.) |
| Stock of broad money | $97.44 million (31 December 2015 est.) $88.59 million (31 December 2014 est.) |
| Stock of domestic credit | $5.185 million (31 December 2014 est.) $5.185 million (31 December 2014 est.) |
| Exports | $3.4 million (2016 est.) $3 million (2015 est.) |
| Exports - commodities | electronic components, plastic bags, apparel; hot peppers, limes, live plants; cattle |
| Imports | $31.75 million (2016 est.) $30.76 million (2015 est.) |
| Imports - commodities | machinery and transportation equipment, foodstuffs, manufactured goods, fuels, lubricants |
| Reserves of foreign exchange and gold | $51.47 million (31 December 2015 est.) $45.1 million (31 December 2014 est.) |
| Debt - external | $8.9 million (1997) |
| Exchange rates | East Caribbean dollars (XCD) per US dollar - 2.7 (2016 est.) 2.7 (2015 est.) 2.7 (2014 est.) 2.7 (2013 est.) 2.7 (2012 est.) |