MEFD January 2020

Published: Monday March 2nd, 2020

Preliminary indications are that the domestic economy exhibited mildly expansionary trends during the review month. Gains in the high value-added stopover visitor segment, mainly in New Providence and the Family Islands not damaged by Hurricane Dorian, supported the rise in tourism sector output. Further, activity in the construction sector was fueled by foreign investment-led projects, and to a lesser extent post-hurricane rebuilding works. On the fiscal front, the Government's hurricane-related expenditure hike, overshadowed the increase in revenue collections, and contributed to a widening in the deficit during the first half of FY2019/2020. In monetary developments, bank liquidity grew, reflecting an expansion in the deposit base and a decline in domestic credit. Similarly, buttressed by net foreign currency inflows from re-insurance and real sector activities, external reserves recorded healthy growth over the review month.

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