Monthly Economic and Financial Developments (MEFD) December 2025
Published: Monday February 2nd, 2026
Economic indicators suggest that during the month of December, the domestic economy sustained its growth trajectory, relative to the comparative period in 2024, as key economic indicators continued to normalize closer to their medium-term potential. Tourism output gains, while at healthy levels, slowed in comparison with the previous year, as the high value-added stopover segment remained constrained by capacity limitations and reduced demand from the United States market. Nonetheless, expansion in the cruise segment remained robust. In fiscal developments, preliminary data on the Government’s budgetary operations for the first quarter of FY2025/26 revealed that the deficit narrowed, on account of an increase in total revenue, which overshadowed the rise in aggregate expenditure. Further, monetary trends during the review month showed a reduction in banking sector liquidity, as the expansion in domestic credit, contrasted with the contraction in the deposit base. Likewise, external reserves decreased, explained by net foreign currency outflows through both the public and private sectors, in line with the seasonal uptick in the demand for foreign currency in the latter half of the year.
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