The tourism-driven economy contracted by 10.3% in fiscal year 2020 (FY2020, ending 30 September), following a 1.8% decline in FY2019. Global travel restrictions resulted into a sharp decline in tourist arrivals by 99% year-on-year (y-o-y) from April 2020 to September 2020, after drops of 43% y-o-y in February 2020 and 70% y-o-y in March. Additional spending under the Coronavirus Relief One-Stop Shop Program, coupled with a 25% decline in tax collections, led to the first fiscal deficit in a decade. The current account deficit widened to 32.6% of GDP, given the collapse in tourism receipts. Another 7.8% contraction is projected in FY2021, due to continued declines in arrivals. The economy is expected to begin recovering, growing by 10.4% in FY2022 with an expected rebound in tourism.
|Headline Inflation Rate 1||2.1 (Dec18)||1.3|
|Merchandise Export Growth 1||-7.9 (Jan22)||-7.9||90.2|
|Exchange Rate Index 2||100.0 (Apr22)||100.0||100.0|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
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