MEFD January 2022

Published: Monday February 28th, 2022

Preliminary indications are that the domestic economy maintained its growth trajectory during the month of January, although continuing to be impacted by the ongoing Novel Coronavirus (COVID-19) pandemic. Tourism sector output further recovered, undergirded by sustained gains in the high value-added air segment and the modest uptick in sea traffic, as vaccination efforts progressed. On the fiscal front, the overall deficit narrowed considerably during the first six months of FY2021/22, reflective of rebounded revenue collections, and a marginal decline in aggregate expenditure. Monetary developments featured an expansion in bank liquidity, despite the rise in the deposit base trailing the expansion in domestic credit. However, external reserves decreased during the review month, reflective of increased net foreign currency outflows through the public sector.

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