MEFD July 2021

Published: Monday August 30th, 2021

Domestic economic activity during the month of July continued to be largely impacted by the spread of the Novel Coronavirus (COVID-19) pandemic. Nonetheless, tourism output showed signs of a gradual recovery, underpinned by ongoing gains in the high value-added air segment and the modest resumption in sea traffic, reflecting sustained progress in vaccination efforts, both locally and internationally. Further, several varied scale foreign investment-led projects, combined with post-hurricane rebuilding works, provided support to the construction sector. Monetary trends in July revealed a contraction in bank liquidity, as the increase in domestic credit offset the rise in the deposit base. However, external reserves grew, bolstered an uptick in net foreign currency inflows through the private sector and further proceeds from Government’s external borrowings.

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