For a better view on Central Bank of The Bahamas, Update Your Browser.
Latest News Latest Publications
Back

Monthly Economic and Financial Developments (MEFD) March 2024

Published: Monday April 29th, 2024

Domestic Economic Developments

Overview

Preliminary indications are that the domestic economy’s growth pace, though healthy, was moderated during the month of March, compared to 2023, as economic indicators continued to converge closer to their expected medium-term trajectory. The tourism sector momentum was supported by robust gains in both the high-value air traffic and the sea component, reflective of the sustained demand for travel in key source markets. Monetary trends featured an accumulation in banking sector liquidity, undergirded by a buildup in the deposit base, which outpaced the rise in the domestic credit. In addition, external reserves grew, benefitting from net foreign currency inflows from the private sector.

Real Sector

Tourism

Monthly data suggested that in March, tourism output remained buoyant, with healthy growth in both sea and air arrivals, given the persistent demand for travel in key source markets and enhanced marketing efforts.

The most recent data provided by the Nassau Airport Development Company Limited (NAD), indicated that total departures—net of domestic passengers—grew by 11.7% to 167,561 in March, compared to the corresponding period of 2023. Specifically, U.S. departures rose by 12.0% to 143,667, while non-U.S. departures increased by 10.3% to 23,894 relative to the prior year. For the first three months of 2024, out-bound traffic expanded by 11.1% to 444,495. In particular, U.S. departures advanced by 12.0% to 377,714, compared to preceding year, and non-U.S. departures by 6.3% to 66,781.

In the short-term vacation rental market, the latest data provided by AirDNA showed that in March, total room nights sold increased by 16.7% to 71,646 from the previous year. Correspondingly, the occupancy rates for both entire place and hotel comparable listings firmed to 63.8% and 40.9%, respectively, from 63.1% and 39.0% in the prior year. For the first quarter, total room nights sold grew by 13.8% to 177,538, vis-à-vis the same period in 2023. Further, as depicted in Graph 1, price indicators showed that year-over-year, the average daily room rate (ADR) for entire place listings and the ADR for hotel comparable listings rose by 2.9% to $562.00 and by 9.5% to $164.00, respectively.

 

For full text reading, please download the attached document.

 

Publication

Preliminary indications are that the domestic economy’s growth pace, though healthy, was moderated during the month of March, compared to 2023, as economic indicators continued to converge closer to their expected medium-term trajectory. The tourism sector momentum was supported by robust gains in both the high-value air traffic and the sea component, reflective of the sustained demand for travel in key source markets. Monetary trends featured an accumulation in banking sector liquidity, undergirded by a buildup in the deposit base, which outpaced the rise in the domestic credit. In addition, external reserves grew, benefitting from net foreign currency inflows from the private sector.

 

For full text reading, please download the attached document.

Document(s)