MEFD January 2013

Published: Friday March 8th, 2013

Indications are that the domestic economy continued its mild pace of growth during January, as foreign investment and, to a lesser extent public sector projects, supported construction activity, while tourism output appeared to soften, amid a decline in occupancy levels. In the absence of a broad-based recovery, unemployment levels remained elevated, and inflation was relatively benign. The fiscal performance deteriorated for the first half of FY2012/13, as revenues normalized following the year-earlier extraordinary flows, and salary related payments, alongside infrastructure project commitments, boosted spending levels. Monetary developments featured a contraction in both liquidity and external reserves, associated with normal demand for imports.

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