MEFD June 2016

Published: Wednesday August 3rd, 2016

Preliminary indicators showed that domestic economic activity remained relatively mild during the review month, amid modest impulses from the tourism sector. Also foreign investment projects continued to support output in the construction sector. Reflecting seasonal impetus from cultural events, the jobless rate narrowed during the first half of the year, although staying incrementally firmer when compared to the same period of 2015. Domestic energy costs rose marginally in June, due in part to some increase in global oil prices, while the fiscal deficit was higher over the eleven months of FY2015/16, as spending growth exceeded the value added tax (VAT)-led revenue improvement. On the monetary front, both bank liquidity and external reserves expanded during June, buoyed by net foreign currency inflows from real sector activities.