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Montserrat

Montserrat: Overseas Territory Profile (as of July 2020)

Attachments

COVID-19

It is projected that the COVID-19 crisis will push unemployment in Monserrat up from 7 per cent pre pandemic to 25 per cent. A recent Business Impact Assessment conducted by the Government found that between 25 March and 13 April the pandemic had caused $3.6 million in economic disruptions, directly affecting the livelihood of 85 per cent of those represented in the assessment. Moreover, there is only one small hospital on the island which has no intensive care capacity, with all specialized tertiary health care services being performed in the neighboring islands of Antigua and Guadeloupe.
For the most recent update on the COVID-19 caseload, see the PAHO daily reported COVID-19 data. For the latest information on curfews and other measures, click here.

KEY ISSUES

SOCIO ECONOMIC VULNERABILITY

The high cost of living in Montserrat, combined with low wages and chronic under employment , creates barriers for households to meet their basic needs. Migrants from neighbouring countries are particularly vulnerable, especially those from Spanish speaking countries. Overall, migrants experience higher levels of poverty compared to their national counterparts, with the poverty rate for non nationals at 35 per cent compared to 22 per cent for nationals.

BREXIT AND AID DEPENDENCY

Montserrat is significantly exposed to Brexit developments in the UK, as the territory has greatly benefited from the European Development Fund. Montserrat typically finances about 35 per cent of total expenditure from its own resources and depends on external sources to cover the balance. Between 2000-2015, 61.3 per cent of its total revenue came from grants, leaving the territory vulnerable to changes in aid policies and UK-EU relations.

RESOURCE SCARCITY

Multiple eruptions of the Soufriere Hills volcano (1995-1997) had a significant impact on physical and human capital. A total of 60 per cent of the island’s land area in the south was rendered uninhabitable and two-thirds of the population fled abroad. Approximately 70 per cent of arable land was lost and 50 per cent of springs and all wells were destroyed. This has created a major barrier to the growth of agricultural production and food security, contributing to the territory’s dependence on imported foods.

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