Monthly Economic and Financial Developments (MEFD) January 2024

Published: Monday March 4th, 2024

Preliminary indications are that during the month of January, the domestic economy sustained its growth momentum, although at a more tempered pace, with economic indicators returning closer to their expected medium-term potential. Tourism output continued to register healthy growth, bolstered by gains in both the high value-added air segment and the sea component, as the demand for travel in key source markets persisted, amid aggressive marketing of the destination. In price developments, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—moderated in 2023, as the rise in international oil prices slowed, relative to the same period last year. Monetary trends for January were marked by an expansion in banking sector liquidity, on account of a buildup in the deposit base, which contrasted with the reduction in domestic credit. Similarly, external reserves grew, largely attributed to the Government’s external borrowing activities.

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