Monthly Economic and Financial Developments (MEFD) December 2023

Published: Monday January 29th, 2024

During the month of December, preliminary indications are that the domestic economy’s growth momentum persisted, albeit at a moderated pace, as economic indicators converged closer to their expected medium-term trajectory. Tourism output remained buoyant, undergirded by robust gains in both the high value-added air traffic and sea passengers, reflective of the ongoing demand for travel in key source markets. With regard to prices, average consumer price inflation—as measured by changes in the average Retail Price Index (RPI) for The Bahamas—moderated during the twelve months to October, 2023 reflective of a slowdown in the rise in international oil prices, vis-à-vis the same period the year prior. In monetary developments, banking sector liquidity contracted, explained by a deceleration in the growth in the deposit base, which contrasted with the reduction in domestic credit. Likewise, during the review month, external reserves declined, owing primarily to a rise in net foreign currency outflows through the public sector.

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