MEFD February 2016

Published: Wednesday April 6th, 2016

Preliminary evidence suggests that the domestic economy continued to expand at a modest pace during the month of February, reflecting growth in tourism output, while foreign investment-led projects supported activity in the construction sector. Inflationary pressures remained relatively subdued over the review period, as the decline in global oil prices contributed to further reductions in energy costs. On the fiscal front, the overall deficit narrowed considerably in the seven months of FY2015/16, with the value added tax (VAT)-led surge in revenue, outstripping the growth in expenditure. Meanwhile, monetary sector developments in February were dominated by Government’s receipt of proceeds from an external loan, which led to growth in both liquidity and external reserves. 

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