Monthly Economic and Financial Developments (MEFD) May 2025

Published: Monday June 30th, 2025

Preliminary indications are that the domestic economy’s pace of growth moderated during May 2025, relative to the same period last year, as performance continued to move closer to their expected medium-term potential. Tourism inflows, although at healthy levels, rose at a slower pace, owing to capacity constraints in the high value-added stopover category, albeit the cruise sector remained buoyant. In price developments, average consumer price inflation posted a flat outturn during the 12 months to March 2025, relative to the comparative 2024 period, underpinned by reduced cost pressures from imported fuel and other goods and services. Monetary sector developments featured a buildup in banking sector liquidity, as the accumulation in the deposit base exceeded the growth in domestic credit. In contrast, external reserves decreased, mainly attributed to a rise in net foreign currency outflows through the public sector.

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