Monthly Economic and Financial Developments, December 2007

Published: Thursday February 14th, 2008

Initial data for the month of December suggest a slowing in the pace of economic activity, as signs of weakness in the tourism and construction sectors offset growth in consumer demand. Monetary developments featured an expansion in external reserves and a moderation in the contraction in liquidity, consequent on the receipt of proceeds from Government’s short-term foreign currency borrowings.

The latest information for the tourism sector, showed that total visitor arrivals fell by 3.8% (0.18 million) to 4.14 million over the eleven month period, reflecting contractions in the main air and sea components by 1.7% and 4.8%, respectively. In terms of the major markets, broad-based declines were noted for visitors to New Providence (1.3%), Grand Bahama (6.8%) and the Family Islands (7.4%).

Consumer price inflation for 2007 firmed to 2.5% from 1.8% last year. The main increases were registered for furniture & household operations (5.26%), recreation entertainment & services (3.78%), transport & communication (3.72%), food & beverages (3.59%) and medical & health care (3.01%). Average price gains of less than 3.0% were recorded for the remaining categories.

For full text reading, please go to Main Publications, Monthly Economic and Financial Developments, MEFD December 2007.