MEFD April 2020

Published: Sunday May 31st, 2020

The Novel Coronavirus (COVID-19) pandemic significantly disrupted domestic economic activity during the month of April. Travel restrictions imposed globally negatively affected the tourism sector, as both the high value-added air segment and sea traffic came to a standstill. However, the partial resumption of foreign investment-led projects and post-hurricane rebuilding efforts provided limited stimulus to the construction sector. On the fiscal front, the overall deficit widened during the third quarter of FY2019/2020, as unplanned hurricane-related outlays led to a sharp increase in expenditure, which outpaced the growth in revenue collections. Monetary developments registered a contraction in bank liquidity, owing to a notably rise in domestic credit, which exceeded gains in the deposit base. Similarly, external reserves contracted during the review month, reflective of a falloff in foreign currency inflows.

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