Monthly Economic and Financial Developments (MEFD) October 2023

Published: Monday December 4th, 2023

Preliminary indications are that during October, the domestic economy maintained its growth trajectory, albeit at a moderated pace, with economic indicators returning closer to the expected medium-term potential, as the recovery from the COVID-19 pandemic neared completion. Tourism output remained buoyant, supported by gains in both the high value-added air traffic and sea passengers, on account of aggressive promotion of the destination, and the ongoing elevated 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—moderated during the twelve months to August, 2023, as the rise in international oil prices slowed, vis-à-vis the same period last year. Monetary trends for October were marked by a contraction in banking sector liquidity, as the reduction in the deposit base, outpaced the decline in domestic credit. In addition, external reserves decreased during the review month, on account of net foreign currency outflows through the private and public sectors.

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