MEFD March 2011

Published: Wednesday May 11th, 2011

The domestic economy continued to exhibit stable trends over the review month, supported in part by both foreign-investment and public sector-related construction activity. However, tourism output softened somewhat and in the absence of a more broadly-based improvement in general economic activity, domestic demand remained anaemic and the unemployment rate relatively high. Inflationary pressures moderated over the twelve-months to January, although the ongoing rise in international oil prices sustained the uptrend in energy costs. Buoyed by a number of one-time revenue inflows, Government’s deficit improved over the nine months of FY2010/11, while monetary developments for the review month featured a contraction in liquidity and lower accretions to external reserves, largely explained by a commercial bank’s capital repatriation activity.

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