Barbados economy stabilizing
By George Alleyne
Barbados is on course for a
flat economy this year but has
begun to increase net foreign
reserves and register gains in
revenue while reducing public
debt, positioning the island for
a 1.75 percent growth in 2020.
Such is the forecast based
on performances for the first
nine months of 2019, which
overall reflect stabilisation of a
downward spiralling economy,
setting the base for an upward
movement going forward.
“We have made an encouraging
confident start to what
is a difficult challenge. However,
we must not become complacent,
as unfavourable global
economic developments can
easily undermine our efforts,”
warned Central Bank Governor,
Cleviston Haynes as he
delivered an economic report
for the first nine months of
the year.
“We have made sufficient
progress to suggest that we are
moving in the right direction.
What I would say more generally
is that we always have to
remain focused on where we
are at, and if we need to make
adjustment at any point we
need to make those adjustments.”
Though Haynes was reporting
for the island’s nine-month
performance, the island’s fiscal
year begins on April 01 of
the calendar year.
So, he reported that for the
fiscal period April to September
revenue gains went up nine
per cent, while non-interest
expenditure fell by 0.8 percent
during that same period.
On the calendar year measurement
he indicated that for
the first nine months of the
year the international reserves
stood at $611 million that
equates to 15.6 weeks of import
cover for essential goods and
services, while the debt-togross
domestic product (GDP)
ratio was down to 121 percent
of GDP, which included arrears
on external debt.
On reflection these figures
are significant markers on
recovery.
When the current administration
took office in May 2018,
the international reserves
stood at the dangerously low
level of $220 million, which
STATEN
ISLAND We Are Pleased
MANHATTAN
Caribbean L 46 ife, November 8-14, 2019 BQ
limited government’s ability
to import essential goods
and services to a few weeks,
way under the international
threshold of 12 weeks. That
status held a threat to devaluation
of the dollar.
Back then debt-to-GDP
ratio that reflects the country’s
overall debt compared to
gross domestic product was
at 155.
Revenue overall increased
by nine per cent during the
first six months of the current
fiscal year, and non-interest
expenditure fell by 0.8 per cent
during that same period.
Haynes noted that Barbados,
“continues to reflect
strengthening of the public
finances, reduced public sector
indebtedness and a steady
improvement in holdings of
international reserves”.
For this reason and despite
of the flat trajectory for 2019
the Central Bank Governor
was upbeat on the 2020
outlook that hinges mainly
demand for tourism services
and the pace of investment
activity, both of which have
promising indicators.
Barbados Central Bank Governor, Cleviston Haynes.
Photo by George Alleyne
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