MEFD May 2021

Published: Monday June 28th, 2021

Developments in the domestic economy continued to be driven by the Novel Coronavirus (COVID-19) pandemic during the month of May. Globally imposed travel restrictions continued to impede tourism sector activity, although the sector is showing some signs of recovery due to vaccination efforts. Nevertheless, the high value-added air component remained at historic lows and the sea segment largely offline. In contrast, ongoing foreign investment-led projects and post-hurricane rebuilding works supported activity in the construction sector. On the monetary front, bank liquidity expanded, as the growth in the deposit base contrasted with the reduction in domestic credit. Further, external reserves increased, largely attributed to the Government’s external borrowing activities.

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