MEFD November 2009

Published: Wednesday December 23rd, 2009

Although recent indicators point to a modest acceleration in the recovery of global output, preliminary data suggests that domestic economic activity remained weak during November, given the downturn in tourism performance, persistent sluggishness in foreign-investment led construction activity, and anaemic private sector demand. These trends continued to adversely impact the fiscal situation and dampen employment prospects. Monetary conditions featured robust gains in both liquidity and external reserves, arising from the Government’s receipt of the net proceeds from a US$300 million external bond issue. Domestic inflationary pressures remained comparatively soft over the review period, reflecting the pass-through effects of lower fuel prices.

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