Apr 2015 Financial News

No failure – Sinckler stays confident on economic recovery (Barbados)

Apr 27, 2015

FINANCE and Economic Affairs Minister, Christopher Sinckler has taken issue with those who believed that economic recovery could only be done through an arrangement with the International Monetary Fund (IMF).

He used the occasion of an improving economic position to demonstrate that the country has the ability to manage its own affairs and bring about economic growth.

“There were many predictions that our instability as a country and as a region will continue, and that recovery could only be possible if we as Caribbean people, and we as Barbadian people, scamper off whimpishly to Washington DC for a bail out from some international financial institution,” Sinckler said.

He made the comments at the official opening of the First Citizens Bank at Welches, St. Thomas.

“However, those of us who have faith in our own abilities as a people to face our problems and find home grown solutions to address those challenges in a way that does not decimate our society, and work hard enough to be able to ensure that the vision and confidence which we know is born out of our tenacity and hard work....we can say today we are still in the battle fight and winning,” he said.

“Our confidence in ourselves has not been misplace. While the mission is far from over and the final destination is still some distance off, our strides are getting fuller, our strength more lasting and are chances for ultimate success will show,” said Sinckler.

According to him, “We have begun a turnaround in the Barbados economy and society.”

The Minister said, “The fact that our first quarter growth is just short of one per cent and the prediction falls between one and two per cent growth for the remainder of the year, gives us a degree of confidence that the polices we have adopted, the disciple that we have shown, the tenacity that we have, will bring us out successful in the end.”

At the end of March the country’s net international reserves stood at $1.135 billion representing 16 weeks of imports up from 14 weeks at the end of 2014.

“The increase of $83 million in international reserves reported by the Central Bank of Barbados, is not a comparison of the first quarter of 2015 with the last quarter of 2014 – that is not how reserves are done. It is a year on year comparison,” he told the opening ceremony.

Sinckler also revealed that Government has achieved its revised fiscal target of 7.2 per cent of GDP for the fiscal year 2014/15, with a small primary surplus of Bds$37 million, up from a primary deficit last year of $385 million.

“That in any language is an achievement of which we should be proud,” the Minister indicated.

“The economic recovery being witnessed is part of the steadfast discipline that we have applied in putting together a programme over the last 19 months to do a number of things.

“They include returning stability to our foreign exchange market, bringing our fiscal deficit down to more manageable levels... and to see a turnaround in relation to growth in our economy, in relation to expansion of our critical and domestic sectors.

“We have been happy with growth of the alternative sector in Barbados.”

He stated that even in consideration of the very realities we have faced as a Barbadian society and economy, “we had to confront over the past difficult years, many counted on Barbados to fail and to fall. There is nothing wrong with that, because the environment that we operate is so unforgiving and so tough... when confronted with the world’s worst economic and financial crisis in nearly a 100 years, it would have impacted on confidence.” (NB)

Source:
Barbados Advocate
Monday April 27, 2015

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=43033