MEFD June 2017

Published: Monday July 31st, 2017

Preliminary evidence suggests that domestic economic activity remained mildly positive during the month of June, as output in the construction sector continued to be buoyed by foreign investment projects, and to a lesser extent, public sector rebuilding activity. In contrast, the tourism sector’s performance remained soft, reflecting largely the loss of significant room inventory in one major market. Stronger private sector demand continued to be evident, based on the year-on-year growth in foreign exchange transactions, associated with payments for imports of goods and services. The estimated fiscal deficit expanded over the first 10 months of FY2016/2017, with capital outlays leading the growth in overall expenditure, which exceeded the increase in revenue. Monetary developments featured an expansion in banking sector liquidity, with deposit gains outpacing credit growth. External reserves firmed modestly, buoyed by inflows from real sector activity.

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