The Central Bank of the Bahamas published its Monthly Economic and Financial Developments report for May 2025, launching a new monthly series intended to provide more frequent updates from its economic surveillance. The report points to moderating domestic growth versus a year earlier as tourism gains slowed in the stopover segment due to accommodation capacity constraints, while 12-month consumer price inflation to March 2025 was flat. Banking sector liquidity increased as deposit growth outpaced domestic credit, but external reserves declined mainly on higher net foreign currency outflows through the public sector. Air departures from Nassau, net of domestic passengers, fell 3.2% year on year to 133,397 in May, leaving year-to-date outbound traffic down 2.3% at 0.7 million. Short-term rental room nights sold rose 5.0% to 66,830, with the average daily rate up 10.4% to 571.89 for entire-place listings, while occupancy eased to 44.1% from 47.3% a year earlier. Excess reserves rose by BSD 44.1 million to BSD 1,965.4 million and excess liquid assets by BSD 33.5 million to BSD 3,182.5 million, while external reserves fell by BSD 24.0 million to BSD 2,803.2 million. Growth in Bahamian dollar credit strengthened to BSD 93.2 million, driven by a BSD 83.3 million increase in net claims on the Government and a BSD 13.0 million rise in private sector credit; total private sector arrears increased to BSD 465.5 million (7.9% of claims) even as non-performing loans declined to BSD 313.0 million (5.3%). The weighted average loan rate rose to 11.82% and the deposit rate to 0.74%, and the Bank indicated it will retain an accommodative stance for private sector credit while monitoring foreign exchange market conditions to support reserves and financial stability. Future MEFD reports are scheduled for release on the Monday following each Monetary Policy Committee meeting, with 2025 release dates listed as 4 August, 1 September, 29 September, 3 November, 1 December and 29 December.

Original source View in tracker