MEFD March 2012

Published: Wednesday May 2nd, 2012

Indications are that the domestic economy continued to exhibit modest growth during March, benefitting from steady gains in tourism output and foreign-investment led construction activity. Inflation sustained its upward trajectory from relatively low year-earlier levels, reflecting the pass-through effects of higher international oil prices. In the fiscal sector, the overall deficit widened for the eight months to February of FY2011/12, as the increase in aggregate expenditure overshadowed the rise in total revenue. Money and credit developments featured a build-up in bank liquidity for March, associated with increased lending to the Government, while payments for goods and services explained the contraction in external reserves.

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