MEFD January 2016

Published: Tuesday March 8th, 2016

Buoyed mainly by the growth in tourism sector output and positive impulses from foreign investment-related construction activity, indications are that the domestic economy sustained its growth trajectory in January. Inflation remained relatively subdued over the twelve months to October, reflecting the pass-through effects of the persistent decline in global oil prices. A Value Added Tax (VAT) led expansion in revenue, which outpaced a moderate gain in spending, resulted in a significant narrowing of the Government’s deficit over the first six months of FY2015/16, while monetary sector developments were dominated by net inflows from real sector activities, which supported gains in both bank liquidity and external reserves. 

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