May 2007 Financial News

Another quarter of growth for Barbados

May 01, 2007

Barbados' economy grew by an estimated 3.7 per cent over the first three months of this year.

Although down from the 4.1 per cent growth over the same period in 2006, this still marked the 11th consecutive quarter of economic growth above three per cent.

Construction, the main driver of the economy for the same period in 2006, and over the last year, only expanded by 5.4 per cent, which marked a decline from the 6.5 per cent witnessed over the same period last year.

Central Bank Governor Dr Marion Williams told a Press conference yesterday the island was finally witnessing a slowdown in the construction boom that had been going for the last two years.

Almost halted

It also caused growth in non-metallic production to practically halt, growing by only one per cent in contrast to the 30.4 per cent surge for the same period in 2006.

Instead, economic growth was driven this quarter primarily by strong performances in the non-traded sectors led by distribution and transportation services, which Williams said were fuelled by Cricket World Cup activities.

On the other hand, she said that up to the time of the reporting period, the anticipated increases in tourism activity for the tournament had not borne fruit.

Williams said real tourism value-added decreased by about 3.8 per cent with preliminary estimates suggesting that long-stay arrivals contracted by six per cent, which she linked to a decline in CARICOM travellers as they put off visiting until the main cricket activity started.

Source:
The Nation Newspaper
Tuesday May 1, 2007

http://www.nationnews.com/story/300438822723138.php