Monthly Economic and Financial Developments (MEFD) November 2024

Published: Friday December 20th, 2024

Provisional data suggest that during November, the domestic economy sustained its growth momentum, albeit at a tempered pace compared to the preceding year.  In particular, economic indicators continued to trend closer to their expected medium-term trajectory. Tourism sector activity continued to expand—although at a slowed pace—as strong growth in the cruise segment contrasted with accommodation capacity constraints in the high value-added stopover component. In price developments, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—slowed during the 12 months to September 2024, relative to the comparative 2023 period, reflective of a moderation in price pressures for imported fuel and other goods and services. On the fiscal front, preliminarydata on the Government’s budgetary operations for FY2024/25 showed that the deficit widened vis-à-vis the same quarter in FY2023/24, as the growth in aggregate expenditure overshadowed the rise in total revenue. Monetary sector trends were marked by an expansion in bank liquidity, despite the growth in domestic credit exceeding the buildup in the deposit base. Meanwhile, the decline in external reserves moderated considerably, owing primarily to net foreign currency inflows through the private sector, which offset net public sector outflows.

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