MEFD June 2021

Published: Tuesday August 3rd, 2021

During the month of June, domestic economic developments continued to be influenced by the Novel Coronavirus (COVID-19) pandemic. Nevertheless, despite ongoing globally imposed travel restrictions, the tourism sector showed signs of a slow recovery, with an uptick in the high value-added air component, and the gradual resumption of sea traffic, due to increased vaccination efforts. The half-year however, performance still lagged 2020, owing to the growth momentum experienced before the pandemic struck. Meanwhile, varied scale foreign investment-led projects, combined with post-hurricane rebuilding works, provided continued stimulus to the construction sector. Monetary developments in June recorded a build-up in bank liquidity, as the growth in the deposit base contrasted with the contraction in domestic credit. Moreover, external reserves grew, bolstered by net foreign currency inflows from Government’s external borrowings and modest net foreign currency inflows through the private sector.

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