MEFD January 2012

Published: Tuesday March 6th, 2012

Indications are that domestic economic conditions maintained a positive trend during the review month, supported by modest gains in tourism output and ongoing foreign and public sector investment projects. However, the mild momentum of the recovery continued to limit job gains and rising energy costs exerted some upward pressure on domestic price levels. The fiscal situation registered an improvement in the overall deficit for the first half of FY2011/12, reflecting higher revenue collections and relatively flat spending. In the monetary sector, gains in bank liquidity were considerably below the year earlier levels and external reserves contracted, following on last year’s outcome—which was boosted by extraordinary foreign currency inflows.

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