BUSINESS MONDAY: Not yet out of the woods

THE darker clouds have not dissipated just because the Barbados economy is expected to grow by two per cent this year. President of the Barbados Chamber of Commerce and Industry (BCCI), Eddie Abed, said so in an address to the recent annual general meeting of the Chamber.

He said that the economy was recently downgraded by Moody’s into more junk status. Sadly, there are only seven countries in the world with a rating worse than that of Barbados, according to the BCCI President.

Abed went on to note that only good intentions and promises are being meted out to us. Barbados’ fiscal deficit remains stubbornly high, and the national debt is worrisome, as it is going in the wrong direction, he remarked.

“This is simply not sustainable,” he cautioned.

The President also pointed to the growing industrial unrest, and the seemingly unrealistic wage demands as were reported in the media, along with the additional costs from the 2016 Holidays with Pay Act, which if passed in the present form, will impact on profitability, if not the survival of our businesses.

In its 2016 first quarter growth review, the Central Bank of Barbados said that the economy had expanded 1.7 per cent between January and March this year, on top of a 0.9 per cent growth rate in 2015. The outlook for the rest of the year is about 1.8 per cent, although some agencies are projecting a slightly higher performance for this year.

The BCCI President said that in this, the country’s 50th year of Independence, Barbadians must be aware and be thankful for the sacrifices of “our forefathers and the good governance of both political parties”.

However, he contended that national goals cannot be achieved without greater productivity for increased pay, better governance by greater transparency, prioritising government’s programmes in an era where the costs of providing world class services is impossible.

Abed added that the national dialogue must begin as Barbados remains vulnerable.
 

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