MEFD May 2023

Published: Monday July 3rd, 2023

Indications are that during the month of May, the domestic economy maintained its growth trajectory, although at a moderated pace, as the recovery converged closer to pre-COVID-19 pandemic levels. Tourism sector output continued to register strong growth, undergirded by robust gains in both the high value-added air segment and the sea component, given the persistent demand for travel in key source markets. In labour market developments, the All Bahamas unemployment rate decreased in May 2023, as the number of self-employed persons grew. On the fiscal front, Government’s budgetary operations for the first nine months of FY2022/23 revealed a narrowing in the deficit, as the expansion in revenue collections outpaced the rise in aggregate expenditure. Monetary sector developments featured a reduction in bank liquidity, despite a contraction in domestic credit, which outstripped the falloff in the deposit base. Nevertheless, external reserves grew, owing in part to the receipt of proceeds from Government’s external borrowings.

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