Central Bank Governor: 2021 will test country’s resilience

Last year was indeed difficult for Barbados but according to the Governor of the Central Bank of Barbados, 2021 will test the resilience of the island.

Governor Cleviston Haynes offered his thoughts about 2021 during the 2020 Economic Review by the Bank on Wednesday morning.

He stated that there is an atmosphere of constant disruption and anxiety in the world today, thanks to COVID-19, which will continue to cause uncertainty.

“My main concern is the level of uncertainty because it makes planning difficult and everything is not within our control. It is not where you can spend $100 000 here and say that this will simply address this particular problem. We are not in that type of situation,” said Haynes

The governor went on to note that Barbados is a small, open economy which is being impacted by what is happening in sources markets, especially key markets like the United Kingdom, Canada and the United States.

“They are being buffeted by the virus, they are taking actions that are inconsistent with what we would want to grow our main sector. We have imported some of their problems and so we now have to manage that aspect, and that uncertainty is what grieves me most,” the governor lamented.

Weathering the storm

However, Haynes said that he is encouraged by the existence of certain buffers, and believes that Barbados should be able to weather the storm. These buffers include the BDS $2.7 billion of gross international reserves which the island has that covers 40 weeks of imports. He also made the point that the situation is not only about foreign exchange, but providing support for people and businesses through this difficult period.

The governor advised that going forward the island needs to be able to adapt quickly to take advantage of emerging opportunities.

“Our first task however must be to minimise the risk of long-term damage by containing the spread of the virus now. That will involve wearing our masks, social distancing, etc,” he said.

Haynes contended that the character of Barbados and Barbadians suggests that any challenges faced in 2021 would be met and faced head-on.

(AS)