Montserrat Economy Profile 2008

Economy - overview

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 airports 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. The UK has launched a three-year $122.8 million aid program to help reconstruct the economy. Half of the island is expected to remain uninhabitable for another decade.

GDP (purchasing power parity)

$29 million (2002 est.)

GDP (official exchange rate)

$NA

GDP - real growth rate

-1% (2002 est.)

GDP - per capita (PPP)

$3,400 (2002 est.)

GDP - composition by sector

agriculture: 1.2%
industry: 23.1%
services: 75.7% (1999 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

2.6% (2002 est.)

Labor force

4,521
note: lowered by flight of people from volcanic activity (2000 est.)

Unemployment rate

6% (1998 est.)

Budget

revenues: $31.4 million
expenditures: $31.6 million (1997 est.)

Industries

tourism, rum, textiles, electronic appliances

Industrial production growth rate

NA%

Electricity - production

20 million kWh (2005)

Electricity - consumption

18.6 million kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

480 bbl/day (2005 est.)

Oil - imports

458 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Agriculture - products

cabbages, carrots, cucumbers, tomatoes, onions, peppers; livestock products

Exports

$700,000 (2001)

Exports - commodities

electronic components, plastic bags, apparel; hot peppers, limes, live plants; cattle

Exports - partners

US, Antigua and Barbuda (2006)

Imports

$17 million (2001)

Imports - commodities

machinery and transportation equipment, foodstuffs, manufactured goods, fuels, lubricants, and related materials

Imports - partners

US, UK, Trinidad and Tobago, Japan, Canada (2006)

Debt - external

$8.9 million (1997)

Economic aid - recipient

Country Policy Plan (2001) is a three-year program for spending $122.8 million in British budgetary assistance (2002 est.)

Currency (code)

East Caribbean dollar (XCD)

Exchange rates

East Caribbean dollars per US dollar - 2.7 (2007), 2.7 (2006), 2.7 (2005), 2.7 (2004), 2.7 (2003)
note: fixed rate since 1976

Fiscal year

1 April - 31 March