MEFD May 2020

Published: Monday June 29th, 2020

During the month of May, developments in the domestic economy were dominated by the spread of the Novel Coronavirus (COVID-19), which led to a contraction in economic activity. Specifically, globally imposed travel restrictions impeded tourism sector activity, as the high value-added air and sea segments grounded to a halt. Nevertheless, the partial restart of foreign investment-led projects and post-hurricane rebuilding works, provided impetus to the construction sector. Monetary developments featured a modest expansion in bank liquidity, as the notably rise in domestic credit, was offset by the growth in the deposit base. However, external reserves decreased, largely reflecting the reduction in foreign currency inflows from real sector activities.

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