Monthly Economic and Financial Developments (MEFD) October 2024

Published: Monday December 2nd, 2024

During October, indications are that the domestic economy’s growth trajectory persisted, albeit at a slower pace relative to the previous year, with economic indicators continuing to normalise closer to their expected medium-term potential. Tourism output continued to record healthy gains, but at a moderated pace, supported by robust growth in the cruise component, as the stopover segment remained constrained by accommodation capacity. In price developments, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—declined during the 12 months to August 2024, vis-à-vis the corresponding 2023 period, owing to a decline in price pressures for imported fuel and other goods and services. Monetary sector developments featured more moderate decline in banking sector liquidity than the previous year, although the buildup in the deposit base exceeded the increase in domestic credit. Similarly, the reduction in external reserves slowed notably during the review month, primarily due to net foreign currency inflows through the public sector and a tapering in net seasonal outflows via the private sector.

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