BAHAMAS-ECONOMY-Central bank pleased with growth of domestic economy.

The Central Bank of the Bahamas (CBB) says indications are that during the month of August, the domestic economy maintained its growth momentum, albeit at a moderated pace, as the recovery from the COVID-19 pandemic neared completion and economic indicators returned closer their expected medium-term trajectory.

In its monthly 'Economic and Financial Developments' for August, the CBB said tourism output remained buoyant, supported by ongoing gains in both the high value-added air segment and the sea component, on account of the persistent demand for travel in key source markets.

In price developments, average consumer price inflation, as measured by changes in the average Retail Price Index (RPI) for The Bahamas, rose during the 12 months to June, 2023, attributed to the pass-through effects of higher prices on imported oil and other goods.

The CBB said monetary trends for the month of August were marked by a contraction in banking sector liquidity, with the expansion in domestic credit, contrasting with the reduction in the deposit base. Further, external reserves decreased during the review month, owing largely to an increase in net foreign currency outflows through the private sector

According to the CBB, the tourism sector output sustained its robust growth in monthly trends, reflective of healthy gains in both the high-value air component and sea traffic, as the demand for travel in key source markets persisted.

Official data provided by the Ministry of Tourism (MOT) revealed that total visitor arrivals expanded to 0.74 million in August, from 0.62 million in the corresponding period of 2022. Specifically, the dominant sea segment rose to 0.62 million, from 0.50 million passengers in the prior year.

On a year-to-date basis, total arrivals strengthened to 6.6 million visitors, vis-avis 4.3 million in the corresponding 2022 period. Contributing to this outcome, air arrivals increased to 1.3 million passengers, from one million in the previous year, reflecting gains in all major markets. Similarly, sea arrivals also accelerated to 5.4 million, from 3.3 million visitors in the preceding year

The CBB said that price indicators showed that year-over-year, the average daily room rate (ADR) for entire place listings grew by 8.4 per cent to US$549.65 and for hotel comparable listings, by 10.5 per cent to US$197.71.

The CBB said that average domestic consumer price inflation, as measured by the All Bahamas Retail Price Index, rose to 5.2 per cent...