Monthly Economic and Financial Developments June 2023

Published: Monday July 31st, 2023

Amended: Thursday August 3rd, 2023

During the month of June, preliminary economic indicators suggest that the domestic economy sustained its growth momentum, albeit at a moderate pace, as recovery from the COVID-19 pandemic neared completion. Tourism sector output remained buoyant, supported by healthy growth in both the high value-added air segment and the sea component, as the demand for travel in the key source markets persisted. In price developments, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—firmed during the twelve months to April, 2023, reflective of the pass-through effects of higher prices on imported oil and other goods. Monetary trends for the month of June were marked by a modest expansion in banking sector liquidity, despite the buildup in the deposit base trailing the growth in domestic credit. However, external reserves decreased during the review month, attributed to net foreign currency outflows through the public sector.

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