MEFD February 2023
Published: Monday April 3rd, 2023
Preliminary indications are that during the month of February, the domestic economy sustained its recovery momentum, from the adverse effects of the Novel Coronavirus (COVID-19) pandemic. Tourism output continued to register strong growth, undergirded by gains in both the high value-added air segment and sea traffic, as travel restrictions related to COVID-19 remained eased, and the demand for travel in key source markets increased. On the fiscal front, Government’s budgetary operations for the first six months of FY2022/23 showed a narrowing in the deficit, underpinned by a rise in revenue collections, which outstripped the growth in aggregate expenditure. In price developments, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—rose during the twelve months to January, 2023 reflective of the pass-through effects of higher international oil prices. Monetary sector developments featured an expansion in banking sector liquidity, as the rise in the deposit base, contrasted with the reduction in domestic credit. Further, external reserves increased during February, reflecting Government’s external borrowing activities and private sector inflows.
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