Montserrat Economy 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.)

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

Unemployment rate:
6% (1998 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.)

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

Agriculture - products:
cabbages, carrots, cucumbers, tomatoes, onions, peppers; livestock products

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 - exports:
0 bbl/day (2004)

Oil - imports:
458 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.)

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 - partners:
US, UK, Trinidad and Tobago, Japan, Canada (2006)

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

Debt - external:
$8.9 million (1997)

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