Initial indications for the economic developments for the month of August released by the Central Bank of The Bahamas are that the gradual improvement in the domestic economy was upheld, supported mainly by ongoing construction sector projects and more modest gains in the tourism sector.

Given the weakness in real sector activity, high unemployment persisted, while inflationary pressures were relatively benign, although impacted by the recent firming in global oil prices.

The fiscal situation for the first month of FY2011/12 showed a contraction in the overall deficit, while monetary developments continued to feature high and stable levels of bank liquidity and external reserves, amid soft private sector demand.

The Monthly Economic and Financial Developments report is compiled by the Central Bank to provide the public with more frequent information on its economic surveillance activities.

Download a PDF of the Central Bank’s Monthly Economic and Financial Developments Report August 2011 here.