Monthly Economic and Financial Developments (MEFD) August 2023

Published: Monday October 2nd, 2023

Indications are that during the month of August, the domestic economy maintained its growth momentum, albeit at a moderated pace, as the recovery from the COVID-19 pandemic neared completion and economic indicators returned closer their expected medium-term trajectory. Tourism output remained buoyant, supported by ongoing gains in both the high value-added air segment and the sea component, on account of the persistent demand for travel in key source markets. In price developments, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—rose during the twelve months to June, 2023, attributed to the pass-through effects of higher prices on imported oil and other goods. Monetary trends for the month of August were marked by a contraction in banking sector liquidity, with the expansion in domestic credit, contrasting with the reduction in the deposit base. Further, external reserves decreased during the review month, owing largely to an increase in net foreign currency outflows through the private sector.

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