MEFD June 2020
Published: Tuesday August 4th, 2020
Domestic economic activity during the month of June continued to be adversely impacted by the Novel Coronavirus (COVID-19) pandemic. Ongoing travel restrictions imposed globally, negatively affected the tourism sector, as the high value-added air segment and the dominant sea component remained on pause. However, the resumption of foreign investment-led projects and post-hurricane rebuilding works provided some impetus to the construction sector. Monetary developments recorded a reduction in bank liquidity, reflecting non-bank participation in a Government bond issuance, even though domestic credit contraction outpaced the deposit base reductions. However, external reserves grew, bolstered by net foreign currency inflows from the Government’s external borrowings and residual re-insurance claims inflows.