Montserrat recorded an increase in real gross domestic product (GDP) in 2022 as tourism activity continued to rebound. The easing of COVID-19 restrictions contributed to an improved tourism performance during the year, with positive knock-on effects on the ancillary sectors – transport and wholesale and retail trade. However, there was a falloff in construction activity due, in part, to the delayed start on works associated with the Port Development Project. Fiscal operations resulted in an overall surplus for the Fiscal Year (FY) 2022/23 (April to March); and the Government of Montserrat (GOM) debt-to-GDP ratio remained negligible. The financial sector was broadly stable; however, credit to the private sector declined. On the external account, the trade deficit weakened due to higher imports.

Improved macroeconomic conditions are projected to continue in 2023, amid downside risks. Economic prospects depend on continued budget support, a gradual tourism recovery, and public sector construction activity. However, downside risks remain elevated related to a further slowdown in global economic activity and the everpresent threat of natural hazards.