Deepest Recession In A Decade

We estimate Montserrat's economy to have contracted by 4.2% in 2009, its biggest economic downturn in a decade, as the global financial storm and faltering external demand weighed heavily on the East Caribbean island nation. According to figures from the Eastern Caribbean Central Bank (ECCB), the Montserratian economy grew by a whopping 6.2% in 2008 as agriculture, construction and commerce all benefitted from relative financial market liquidity and high external demand. Government services also played a key role in 2008, accounting for over 36% of the economy, and expanding at a clip of 5.3%. However, we estimate the global economic downturn to have hit the Caribbean region particularly hard, affecting financial market liquidity, tourist arrivals and construction. Moreover, banking and insurance, which accounted for some 13.3% of the Montserratian economy in 2008, likely suffered as a result of the difficult external climate.

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