MEFD May 2018

Published: Monday July 2nd, 2018

Overview

Developments within the domestic economy remained largely positive during the review period of May 2018, as tourism indicators continued to trend upwards, while foreign investment projects supported construction-related activity. Reflecting the increase in global oil prices, domestic energy costs rose during the period, while on the fiscal front, the cumulative deficit contracted over the ten months of FY2017/2018, due to a decline in capital expenditure and an increase in revenue. In monetary developments, broad liquidity expanded, owing to increased short-term financing to the Government; however, external reserves contracted, attributed in part to the seasonal uptick in foreign currency demand during the holiday period, combined with public sector net foreign currency debt payments.