MEFD October 2011
Published: Thursday December 8th, 2011
Amid the heightened uncertainty surrounding the global economic outlook, domestic economic conditions were relatively subdued over the review month. Indications are that tourism output softened, as the downturn in the key air segment overshadowed the weather-related improvement in cruise ship visitors. However, foreign investment and public sector projects continued to support activity in the construction sector. On the fiscal side, the Government’s overall deficit decreased during the first quarter of FY2011/12, as a hike in “non-trade” stamp taxes boosted revenue collections to offset the rise in expenditure. In monetary developments, both liquidity and external reserves contracted during the review month, reflecting a combination of the traditional increase in consumer demand in the latter half of the year and bank profit remittances.
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