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MEFD February 2012

Published: Monday April 2nd, 2012

In the context of improving global economic fundamentals, indications are that the domestic economic recovery was sustained over the review month. Initial data showed gains in key tourism indicators, while foreign investment, combined with public sector infrastructural projects, underpinned the expansion in construction sector output. Consumer price inflation continued to show an upward bias, amid the firming price trends on the international crude oil market. Revised data for the fiscal sector indicated a contraction in the overall deficit for the first six months of FY2011/12, as revenue gains outstripped an increase in spending. In monetary developments, although growth in bank liquidity maintained pace with the year-earlier expansion, the build-up in external reserves was comparatively slowed, amid a public sector-led expansion in Bahamian dollar domestic credit.