Monthly Economic and Financial Developments (MEFD) November 2023

Published: Wednesday December 27th, 2023

Provisional data suggest that the domestic economy sustained its growth momentum during the month of November, although at a moderated pace, with economic indicators converging closer to their expected medium-term trajectory. Tourism output continued to register healthy growth, bolstered by strong gains in the high value-added air passengers and the sea component, amid persistent demand for travel in key source markets. With regard to prices, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—slowed during the latest twelve months to September 2023, as the rise in international oil prices tapered, relative to the same period last year. On the fiscal front, the deficit narrowed in FY2022/23 vis-à-vis FY2021/22, on account of an expansion in aggregate revenue, which outpaced the rise in total spending. Monetary sector developments featured a buildup in banking sector liquidity during the review month, as the expansion in the deposit base exceeded the growth in domestic credit. However, external reserves declined in November, reflective of net foreign currency outflows through the private sector, which offset net public sector inflows.

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