Monthly Economic and Financial Developments (MEFD) March 2026
Published: Monday May 4th, 2026
Domestic Economic Developments
Overview
Indications are that during March, the domestic economy’s pace of growth was maintained relative to the same period in 2025, as indicators continued to align with their medium to long-term trends. Tourism sector output sustained healthy gains, with buoyant cruise sector earnings, occurring alongside expanded stopover receipts, despite ongoing capacity constraints. In price developments, average consumer price inflation firmed in 2025, compared to 2024, reflecting increased cost pressures from the import of fuel and other goods and services. Monetary trends for March featured a seasonal buildup in banking sector liquidity, as the growth in the deposit base, contrasted with the contraction in domestic credit. Similarly, external reserves experienced healthy seasonal gains, supported by net foreign currency inflows through the public and private sectors.
Real Sector
Tourism
Tourism output strengthened during the review period. In particular, gains in the cruise sector augmented strengthening in the high-value-added stopover segment, although capacity constraints remained a challenge.
Official data provided by the Ministry of Tourism showed that total arrivals rose by 15.7% to 1.4 million visitors in March, vis-à-vis the comparative 2025 period. Underlying this outturn, sea arrivals advanced by 17.6% to 1.2 million passengers, while air arrivals grew by 5.9% to 0.2 million visitors.
By major port of entry, total arrivals to the Family Islands increased by 14.8% to 0.7 million, due to a 16.2% expansion in sea passengers to 0.6 million, which overshadowed the 1.4% decrease in air traffic to 44,662. In addition, visitors to Grand Bahama extended to 0.2 million from 46,504 in the previous year. Explaining this outcome, sea traffic firmed to 0.1 million from 38,895 a year earlier, and air arrivals to 7,879 from 7,609 last year. Conversely, in March, total visitors to New Providence fell slightly by 0.2% to 0.6 million, relative to the same period last year, as sea passengers decreased by 2.9% to 0.4 million. However, air arrivals grew by 8.3% to 0.2 million.
On a year-to-date basis, total arrivals grew by 17.5% to 3.9 million visitors. Contributing, sea arrivals expanded by 19.6% to 3.3 million, while air arrivals gained by 5.2% to 0.5 million.
According to the most recent data provided by the Nassau Airport Development Company Limited (NAD), total departures—net of domestic passengers—increased by 6.6% to 174,271 in March vis-à-vis the comparative period in 2025. In particular, non-U.S. departures expanded by 46.4% to 35,295, relative to the same period last year. In contrast, U.S. departures fell by 0.2% to 138,976.
On a year-to-date basis, total outbound traffic through the airport rose by 4.6% to 0.4 million. Specifically, the 44.7% expansion in non-U.S. international departures to 94,419, overshadowed the 2.6% reduction in U.S. departures, to 0.3 million.
In the short-term vacation rental market, AirDNA data indicated that total room nights sold rose by 10.5% to 78,413 in March, vis-à-vis the same period in 2025. Supporting this outcome, the occupancy rates for hotel comparable listings increased to 66.2% from 63.4% and entire place listings, to 61.0% from 58.0% in the preceding year. Further, the average daily room rate (ADR) for hotel comparable listings moved higher by 7.2% to $191.69. Similarly, the ADR for entire place listings grew by 1.5% to $750.49 (see Graph 1).
During the first quarter, total rental room nights sold rose by 10.8% to 196,516, buoyed by gains in both hotel comparable (11.8%) and entire place listings (10.6%). Further, the ADR increased for hotel comparable listings by 6.2% and for entire place listings by 6.0%.
Prices
Average consumer price inflation—as measured by the All-Bahamas Retail Price Index—firmed to 1.1% in 2025, from 0.4% in 2024. Underlying this development, average cost increased for communication by 1.3%, after posting a decrease of 6.0% in the prior year. Further, average inflation quickened for furnishing, household equipment & routine household maintenance (12.8%) and restaurant & hotels (9.5%). In addition, average costs declines slowed for transport (1.6%) and clothing & footwear (0.4%). However, the average price decreases for alcoholic beverages, tobacco & narcotics, by 2.9%, food & non-alcoholic beverages, by 1.9% and education, by 1.6%, contrasted with respective gains the year-earlier. Otherwise, average inflation slowed for health (3.0%), miscellaneous goods and services (2.7%) and housing, water, gas, electricity and other fuels (0.1%).
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