Largest economic contraction on record projected for 2020
RBF says the slump in global travel continues to affect the tourism and related industries and partial indicators for consumption spending, investment activities, and labour market conditions recorded annual contractions in the first ten months this year.
The sluggish economic activity, domestic credit has slowed and interest rates have declined owing to high levels of liquidity, which was around $856.5 million as at Wednesday.
Under the current uncertainty, economic growth for 2021 is anticipated to range between 1.6 and 8 percent, while in 2022, growth is forecast to be between 5.2 and 8.7 percent.
RBF says annual inflation stayed negative at -2.9 percent in October and is forecast to be -3 percent by year-end.
Foreign reserves stand at around $2,194.1 million, sufficient to cover 7.3 months of retained imports.
Credit: FBC
Date: 27/11/2020
