MEFD February 2021

Published: Monday March 29th, 2021

During the month of February, domestic economic developments continued to be driven by the Novel Coronavirus (COVID-19). Travel restrictions imposed globally continued to impede tourism output, with the high value-added air component remaining depressed and the sea segment on pause. Nonetheless, foreign investment-led projects, combined with post hurricane reconstruction efforts, provided some stimulus to the construction sector. In price developments, the domestic inflation rate narrowed during the twelve months to January, explained by lower fuel costs. Monetary developments registered a reduction in bank liquidity, as the expansion in domestic credit, contrasted with the decline in the deposit base. Similarly, external reserves decreased, amid a falloff in foreign currency inflows from real sector activities.

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