MEFD May 2022

Published: Monday July 4th, 2022

Amended: Monday July 4th, 2022

Preliminary indications are that the domestic economy sustained its recovery trajectory during the month of May, given ongoing international adjustments to the Novel Coronavirus (COVID-19). Tourism output strengthened, supported by further rebound in the high value-added air segment and the seasonal recovery in sea traffic, as vaccination efforts progressed and the further relaxation of COVID-19 restrictions in some of the major source markets. On the fiscal front, Government’s budgetary operations for the first nine months of FY2021/22 revealed a significant narrowing in the deficit, as the growth in total revenue outpaced the rise in aggregate expenditure. Monetary developments for the month of May revealed an expansion in bank liquidity, as the acceleration in the deposit base, outpaced the rise in domestic credit. However, external reserves contracted, owing primarily to net foreign currency outflows through the public sector.

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