Monthly Economic and Financial Developments (MEFD) Report June 2024

Published: Monday July 29th, 2024

During the month of June, preliminary economic indicators suggest that the domestic economy maintained its growth trajectory, albeit at a slower pace in comparison to 2023, as economic indicators continued to converge closer to their expected medium-term potential. Tourism output remained buoyant, supported by healthy gains in the high value-added air category and the sea segment, amid 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—moderated during the 12 months to April 2024, vis-à-vis the same period in the preceding year, underpinned by the decrease in global oil prices. On the fiscal front, preliminary data on the Government’s budgetary operations for the first nine months of FY2023/24 revealed that the deficit narrowed vis-à-vis the comparative FY2022/23, as the growth in total revenue overshadowed the rise in aggregate expenditure. Monetary trends for the month of June were marked by a contraction in bank liquidity, as the reduction in the deposit base, outweighed the decline in domestic credit. Simialry, external reserves reduced, largely attributed to net foreign currency outflows through the private sector.

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