MEFD September 2023

Published: Monday October 30th, 2023

During the month of September, preliminary economic indicators suggest that the domestic economy sustained its growth momentum, although at a moderated pace. As recovery from the COVID-19 pandemic reached completion, the pace of output expansion converged closer to the economy’s medium-term potential. Tourism output continued to record robust growth, undergirded by healthy gains in both the high value-added air component and sea traffic, as the demand for travel in key source markets persisted. In price developments, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—rose slightly during the twelve months to July, 2023, reflective of the pass-through effects of higher prices on imported oil and other goods. Monetary developments for the month of September featured a reduction in banking sector liquidity, as the growth in domestic credit, contrasted with the contraction in the deposit base. Further, during the review month, external reserves declined, attributed to a rise in net foreign currency outflows through the private and public sectors.

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