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Monthly Economic and Financial Developments, September 2007

Published: Wednesday November 14th, 2007

Indications are that the expansion in the Bahamian economy moderated somewhat during September, amid a leveling off in foreign investment inflow and tourism activity. Strengthened seasonal demand for foreign currency also contributed to a fall-off in both bank liquidity and external reserves.

Total visitor arrivals fell by 7.0% during the first seven months of 2007, in comparison to the previous year, due to contractions in both the air and sea segments, by 8.0% and 6.5%, respectively. All of the major ports registered declines, with the largest decrease noted for the Family Islands of 8.6% to 0.8 million visitors. Similarly, travelers to the Grand Bahama market fell by 8.3% to 0.4 million, and arrivals to New Providence weakened by 5.9% to 1.6 million. On the fiscal side, the deficit for the first two months of FY2007/08 stood at $23.2 million, in contrast to a $0.4 million surplus in the corresponding period of FY2006/07. This outturn reflected a 7.7% rise in expenditure, as current and capital outlays firmed by 4.1% and 25.0%, respectively. Moreover, total revenue moderated by 3.4%, occasioned by a 5.4% contraction in tax receipts which overshadowed the growth in non-tax revenue.

Inflation for the twelve months ending September moved higher vis-à-vis last year by 0.8 percentage points to 2.42%, owing to continuing price pressures from higher fuel costs. The most significant increases were recorded for other goods and services (4.62%), furniture & household operation (3.98%), food and beverages (3.82%), and recreation & entertainment services (3.35%).

Please see Main Publications, Monthly Economic and Financial, September 2007 for full document reading.