MEFD July 2017

Published: Monday September 4th, 2017

Indications are that domestic economic conditions remained subdued during the review month, reflecting the ongoing softness in tourism output, while foreign investment projects and hurricane repair activities continued to support construction activity. Private sector spending also continued to show improvement, as evidenced by rising demand for foreign exchange for the purchase of goods and services from abroad. Given the level of construction activity, the onboarding of staff for Baha Mar, and some public sector recruitments, employment conditions improved over the six months to May 2017, pushing the jobless rate below double digit levels for the first time in almost a decade. Fiscal developments featured a further expansion in the deficit for the eleven months of FY2016/17, as the growth in aggregate expenditure continued to outpace revenue gains. In the monetary sector, liquidity contracted, as a drawdown in deposits contrasted with growth in credit, while the seasonal increase in foreign currency demand during the summer period, contributed to the falloff in external reserves.

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