The domestic economy maintained its mildly positive growth trajectory in July, according to The Central Bank of The Bahamas‘ latest Monthly Economic and Financial Developments report. Gains in the tourism sector were underpinned by improvements in the major source markets, increased high-end room capacity, and an expansion in airlift.

In addition, foreign investment projects continued to support activity in the construction sector.

However, tourism-dominated employment gains trailed the labour force expansion, with the average unemployment rate consequently increasing in the year-over-year comparisons, through May, 2018. Meanwhile, domestic fuel prices remained elevated for the year, given only incremental abatement in imported fuel costs for the month of July.

Liquidity in the banking sector declined over the review month, with the reduction in the deposit base outpacing the decline in credit. Similarly, external reserves decreased during July, reflecting the seasonal uptick in foreign currency demand.

Preliminary indicators for the tourism sector point to a sustained improvement in the industry’s performance during the review period, over the prior year. The key driving factors included the addition of more high-end room inventory—as the multi-billion dollar Baha Mar resort completed its phased opening in May—along with an increase in airlift from several markets in North America, and an aggressive marketing campaign by the Government.

Read/download the full report here:

• Monthly Economic and Financial Developments July 2018