In 2022, the post-pandemic economic recovery strengthened. Tourism activity grew steadily, particularly in the second half of the year as COVID-19 protocols were eased and the Welcome Stamp initiative continued to attract strong interest. The improved economic performance contributed to lower levels of unemployment; however, inflationary pressures were elevated due to rising international commodity prices and freight costs. Commitment to fiscal reforms supported improved fiscal performance and unlocked financing to
support the recovery. International Reserves remained strong and well above the international benchmark of three months of import cover.

The recovery in economic activity will be sustained in 2023, although the outlook remains highly uncertain, and risks are elevated. Real gross domestic product (GDP) growth of 4.4% is expected in 2023 driven by continued improvements in tourist arrivals, an accelerated pace of implementation of capital projects, and sustained efforts to improve the business climate, reduce the cost of living, and economic reforms.