MEFD February 2020

Published: Monday March 30th, 2020

Preliminary indications are that the domestic economy exhibited moderated, but slightly positive performance during February, in line with tourism output constraints. Sustained growth in the sea segment contrasted with reaction in the high value-added air component which contracted, as some capacity remained offline in hurricane damage areas. The effects of travel restrictions related to COVID-19 began to take an accelerated toll in March. Nevertheless, ongoing foreign investment projects provided stimulus to the construction sector, and to a lesser extent post-hurricane rebuilding works. Monetary sector developments featured an expansion in bank liquidity, amid a build-up in total deposits and a reduction in domestic credit. Similarly, during the review month external reserves registered growth, on account of foreign currency inflows from re-insurance and real sector activities.

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