Montserrat's Current Account Deficit To Widen As Tourism Spike Fades

• Montserrat’s current account deficit will widen in 2019 and 2020, as a sharp spike in tourist expenditure in 2018 returns to historical levels and a number of infrastructure projects drive import demand.
• Fitch Solutions forecast the current account deficit to widen to 9.8% of GDP in 2019 and 12.3% in 2020, from 2.0% in 2018.
• Over the long term, Montserrat will continue to run wide current account deficits, raising risks to external account stability if financing from the UK, EU and multi-laterals falls off.

(Source: Fitch)