Monthly Economic and Financial Developments (MEFD) July 2025

Published: Monday September 1st, 2025

Preliminary indications are that the domestic economy’s tempered pace of growth persisted during July, converging closer to its expected medium-term potential. Tourism registered healthy, but moderated activity, as the high value-added stopover segment remained capacity constrained, although the cruise sector continued to record robust growth. In price developments, average consumer price inflation decreased during the 12 months to May 2025, relative to the same period in 2024, underpinned by reduced cost pressures from imported fuel and other goods and services. On the fiscal front, preliminary data on the Government’s budgetary operations for the first eleven months of FY2024/25 showed that the deficit narrowed vis-à-vis the comparative period in FY2023/24, as the growth in total revenue outpaced the rise in aggregate expenditure. Monetary sector developments featured a buildup in banking sector liquidity, although the growth in the deposit base trailed the expansion in domestic credit. However, external reserves declined on account of net foreign currency outflows through the public sector, combined with reduced inflows via the private sector.

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