Monthly Economic and Financial Developments (MEFD) September 2024
Published: Monday November 4th, 2024
Economic indicators suggest that the domestic economy growth momentum moderated during the month of September, as economic indicators continued to normalize closer to their expected medium-term potential. Tourism continued to record healthy output levels, but at a tempered pace, with the cruise segment expanding at a faster rate than the more dominant stopover market. In price developments, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—slowed during the 12 months to July 2024, relative to the comparative 2023 period, due to a reduction in price pressures for imported fuel and other goods and services. On the fiscal front, provisional data on the Government’s budgetary operations for FY2023/24 showed that the deficit narrowed relative to FY2022/23, underpinned by the growth in total revenue, combined with a reduction in aggregate expenditure. Monetary trends during the month of September were marked by a contraction in banking sector liquidity, as the rise in domestic credit contrasted with the reduction in the deposit base. Likewise, external reserves declined during the review month, owing to net foreign currency outflows through the private and public sectors.
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