Jul 2015 Financial News

Tourism promotes growth for local economy (Barbados)

Jul 15, 2015

A 14 per cent increase in visitor arrivals to Barbados fired the economy to a 0.5 per cent expansion during the first half of 2015.

And were it not for external debt service payments of $278 million leading to an $84 million dip in reserves, they would have grown by $178 million.

This performance was outlined yesterday by the Bank while reporting on the economic review for the period January to June, and making projections of a one per cent growth rate for 2015.

Governor Dr. Delisle Worrell stated that the strong growth in long-stay visitors during the winter season continued into the second quarter of this year.

“Total arrivals rose 14 per cent with increases of 25 per cent, 23 per cent and 14 per cent from the US, Canadian and UK markets, respectively,” said the Governor.

In addition, tourism value added rose by an estimated three per cent during the review period.

The Governor pointed out that the foreign exchange market reserve was almost in balance. “The fiscal position is gradually improving and with the additional fiscal measures announced in the Budget, the fiscal deficit is projected to be reduced further to four per cent of GDP,” the Governor reported.

“Furthermore, the strong demand by private individuals for the recently-issued Government Savings Bonds demonstrates a renewed confidence in Government securities,” the Governor said.

Expenditure by visitors was up five per cent, the net international reserves amounted to $968 million which is equivalent to 14.4 weeks of import cover, private capital inflows were $372 million, down $114 million from 2014 and the annual average rate of unemployment was 12.3 per cent, compared to 11.6 per cent for 2013.

In addition, the rate of inflation fell to 1.4 per cent at the end of last April.

Dr. Worrell also reported that the fall in agriculture continued.

The Review shows that during the first three months of the new fiscal year, the fiscal deficit was estimated at $221 million. Expenditure fell by four million dollars, and total revenue was $33 million lower with VAT and personal income tax receipts falling $14 million and $22 million, respectively. (JB)

Source:
Barbados Advocate
Wednesday July 15, 2015

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=44577