MEFD January 2023

Published: Monday February 27th, 2023

Preliminary economic indicators suggest that the growth momentum in the domestic economy persisted during the month of January, continuing to recover from the adverse impact of the Novel Coronavirus (COVID-19) pandemic. Tourism sector output further strengthened, underpinned by gains in the high value-added air segment and the rebound in sea traffic, reflective of the relaxed pandemic restrictions and pent-up demand for travel in key source markets. In price developments, the domestic inflation rate rose in 2022, against the backdrop of higher international oil prices. Monetary sector developments were marked by moderated gains in banking sector liquidity, even though the contraction in the deposit base outpaced the reduction in domestic credit. Neverthlesss, external reserves declined, attributed to net foreign currency outflows through the public sector.

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