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The economy expanded steadily during the first nine months of 2025, even as global trade tensions continued and growth in several advanced economies slowed. Real GDP increased by 2.7 percent, led by tourism, agriculture, construction, and business and other services. Labour market conditions improved, with the unemployment rate at a record low of 6.1 percent at end-June, 1.6 percentage points below a year earlier, while jobless claims edged up 3.2 percent. Inflation eased as import costs fell. The 12-month moving average rate slowed to 0.5 percent by August, with smaller price increases for food, non-alcoholic beverages and health, and lower prices for housing, utilities, furnishings, transport, and recreational and cultural services. The August point-to-point rate ticked up to 1.2 percent on higher restaurant prices, but underlying inflation remained subdued.
The external position remained robust on strong tourism receipts and higher long-term financing. International reserves measured $3.3 billion at end-September, as increased travel credits and capital inflows to both the public and private sectors offset a wider merchandise deficit, a larger income deficit, and lower receipts from the international financial business sector.
Government recorded stronger fiscal balances and reduced the debt ratio during the first half of the fiscal year. Higher tax revenues, particularly from corporations, outpaced spending on wages and salaries, goods and services, and capital projects. The primary surplus reached $574.1 million (3.8 percent of GDP), while the fiscal surplus rose to $227.1 million (1.5 percent of GDP). The debt-to-GDP ratio declined by 2.9 percentage points to 100.1 percent at end-September.
The financial sector remained sound, with lower loan delinquency, modest credit growth, ample liquidity, and capital buffers well above the regulatory minimum.