Monthly Economic and Financial Developments, October 2006

Published: Wednesday December 6th, 2006

Initial data suggests that economic growth was sustained during the month of October, reflecting continued firming in construction activity and consumer demand.

The latest available tourism data on hotel performance (May 2006) showed ongoing strengthening in room revenues, due to higher average room rates and strong growth in occupied room nights. For the first five months of the year, an upturn in average room (5.1%) and hotel occupancy rates (1.1%) supported a 10.2% rise in total room revenues to $174.6 million. In terms of major markets, double digit gains in average room revenues were registered in Grand Bahama (29.3%) and the Family Islands (11.3%), with a more moderate increase for New Providence (7.1%).

Buoyancy in economic conditions supported an improvement in the fiscal outcome, with government's overall position improved to a surplus of $3.7 million for the first quarter of FY06/07, from a $20.3 million deficit in the corresponding quarter of FY05/06. Growth in revenue and grants of 20.3% outpaced gains in expenditure and was mainly attributed to boosted tax receipts (21.5%), alongside higher collections of fines, forfeits and administrative fees (19.8%). On the spending side, current outlays were up by 8.6% and capital expenditure by 14.6%--the latter reflecting increased outlays for education and health.

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