Preliminary indications are that the domestic economy sustained its mildly positive growth path over the review month, supported by modest gains in tourism output and stable contributions from foreign investment-led project activity. Reflecting the gradually improving economic environment, the unemployment rate declined over the six-months to May, while inflation was relatively benign, despite some firming in international oil prices. On the fiscal side, the overall deficit narrowed during the eleven months of FY2013/14, as broad-based gains in revenue outstripped the rise in expenditure. Monetary developments featured a continuation of elevated levels of bank liquidity, and marginal growth in external reserves, supported by tax-related foreign currency receipts.
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