Jun 2015 Financial News

Barbados on course to boost economic growth

Jun 10, 2015

BARBADOS is still on course to boost economic growth, Finance and Economic Affairs Minister Christopher Sinckler has said. 

The Minister stated that some projects in both the public and private sectors have already started and that they will redound to higher growth. 

He pointed out in his recent news conference that there will be capital inflows associated with the projects. 

Sinckler spoke about work having commenced on a project in the Port and on villas along the island’s west coast. In addition, he pointed to the eagerly awaited redevelopment of Sam Lords Castle, which will be done by the Chinese starting this September, and the proposed Beachland project as well as the new Hyatt, which according to him should start this year.

The Barbados economy expanded by about 0.3 per cent last year. That slender growth was the result mainly of improved showing by tourism and construction activity.

Subsequent to that, the economy grew by almost one per cent in the first quarter of 2015. The continued recovery in the tourism industry has been fuelling the majority of the growth, and projections are for a 1.5 per cent expansion in 2015.

Next week Mr. Sinckler will be presenting his Budget that many believe will look to improve the country’s fiscal position which has been the focus of Government policies over the course of the last three years.

That deficit was down to about 7.2 per cent as of March 2015, and there are projections to bring it to six per cent of GDP by March next year.

The Central Bank of Barbados has said that that deficit approved by Parliament last March remains above levels that can be sustained over time.

It also said that the immediate objective of reducing the ratio of debt to GDP will be attained only when the deficit falls below the growth rate of GDP. (JB)

Source:
Barbados Advocate
Wednesday June 10, 2015

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=43920