MEFD October 2015

Published: Sunday November 29th, 2015

Indications are that the economy’s mildly positive growth momentum was sustained during the review month, as tourism sector output benefitted from the ongoing strengthening in the stopover segment, while foreign investment projects supported construction activity. In addition, domestic energy costs continued to trend lower, reflecting the protracted decline in global oil prices. Fiscal developments during the first quarter of FY2015/16 were dominated by the receipt of proceeds from the Value Added Tax (VAT), which led to a significant contraction in the overall deficit. In the monetary sector, both liquidity and external reserves narrowed during the review month, largely due to the seasonal increase in foreign currency demand.

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