Montserrat is projecting economic growth of 3 per cent in 2026, as the government rolls out a EC$345.95 million budget aimed at rebuilding the island’s economy while strengthening social support systems.

Presenting the 2026/27 budget in the Legislative Assembly on April 20, Premier and Finance Minister Reuben Meade said the plan is designed to keep the island moving forward despite a tough global environment.

He pointed to ongoing geopolitical tensions, unstable energy markets and shifting trade conditions, noting that small economies like Montserrat often feel those pressures most.

“Conflicts in key regions, disruptions to major shipping routes, and the persistence of elevated tariffs have created ripple effects that reach small, open economies like Montserrat, influencing the cost of imports, fuel prices, and the stability of tourism and remittance flows,” Meade said.

Even so, the government expects the economy to expand this year, driven by activity in construction, real estate, financial services and the public sector.

“The economy is projected to grow by 3 per cent in 2026, underpinned by strong performance across public services, real estate, construction, and financial services,” he added.

The budget includes both day-to-day government spending and investment in development projects. Of that, EC$162.2 million has been set aside for capital works, with a strong focus on infrastructure.

This fiscal year will be allocated under the following classifications: 

Economic Infrastructure development of EC$55.24 million, 33.97%; 

Social Infrastructure development of EC$97.69 million, 60.07%

 Public Administration of $0.21 million 0.13%

 Agriculture of EC$0.96 million, 0.59%

Statistical Research, Miscellaneous Projects and Other Programmes of EC$8.52 million 5.24%

Much of the capital programme will be funded through international partners. The United Kingdom, through its Foreign, Commonwealth and Development Office, is providing the largest portion, followed by support from the European Union and the Caribbean Development Bank.

The funding will support a range of ongoing projects, including the Capital Investment Programme for Resilient Economic Growth (CIPREG), alongside other UK, EU and regional initiatives.

Recurrent spending will go towards salaries, wages and the everyday operations of government ministries and departments.

Meade said the budget is part of a longer-term push to build a more self-sufficient Montserrat.

“This budget allows us to continue working towards that vision of a restored rebuilt Montserrat that in years ahead will not survive only because of budgetary support,” he said.