Economic growth in Montserrat for 2018 is estimated at 1.6%, representing a reversal of the contraction of 2.8% in 2017. The outturn was led by a significant turnaround in construction activity, supported by expansions in the real estate and the transport and storage subsectors. Fiscal balances improved and public debt as a percentage of gross domestic product (GDP) remained negligible. Commercial bank credit to the private sector grew; and the spread between lending and deposit rates widened. The external current account remained in deficit.

The economic outlook for 2019 is positive. Output growth is projected to accelerate slightly, reaching 2.0% in 2019, and fiscal conditions should remain on par with the2018 outturn. However, the balance of risks to the outlook is slightly negative.