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 volcano 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 - $31 million (1999 est.)

GDP - real growth rate -1.5% (1999 est.)

GDP - per capita purchasing power parity - $2,400 (1999 est.)

GDP - composition by sector
agriculture: 5.4%
industry: 13.6%
services: 81% (1996 est.)

Population below poverty line NA%

Household income or consumption by percentage share
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices) 5% (1998)

Labor force 4,521 (1992); note - lowered by flight of people from volcanic activity

Labor force - by occupation agriculture NA%, industry NA%, services NA%

Unemployment rate 6% (1998 est.)

Budget
revenues: $31.4 million
expenditures: $31.6 million, including capital expenditures of $8.4 million (1997 est.)

Industries tourism, rum, textiles, electronic appliances

Industrial production growth rate NA%

Electricity - production 5 million kWh (2000)

Electricity - production by source
fossil fuel: 100%
hydro: 0%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 4.65 million kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

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

Exports $1.5 million (1998)

Exports - commodities electronic components, plastic bags, apparel, hot peppers, live plants, cattle

Exports - partners US, Antigua and Barbuda (1993)

Imports $26 million (1998)

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

Imports - partners US, UK, Trinidad and Tobago, Japan, Canada (1993)

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

Currency East Caribbean dollar (XCD)

Currency code XCD

Exchange rates East Caribbean dollars per US dollar - 2.7000 (fixed rate since 1976)

Fiscal year 1 April - 31 March

NOTE: The information regarding Montserrat on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Montserrat Economy 2002 information contained here. All suggestions for corrections of any errors about Montserrat Economy 2002 should be addressed to the CIA.