Economy grows in first quarter

 

THE Barbados economy has turned in one of its better first quarter performances in recent times. 
 
Yesterday the Central Bank of Barbados announced that the economy registered a growth rate of 1.7 per cent for the first three months of 2016, maintaining the expansion of late last year while reversing the 0.5 per cent contraction in the same three months of 2015.
 
The Bank’s Governor, Dr. Delisle Worrell reported that the growth in the first quarter was fuelled by tourism with long-stay visitor arrivals increasing seven per cent.
The Bank’s data show that the USA market was up five per cent, the UK 6.2 per cent, and Trinidad and Tobago and Other CARICOM 1.8 per cent and 0.3 per cent respectively. Arrivals from Canada, Germany, Other Europe and Brazil declined.
 
Dr. Worrell said that international reserves at April 30 stood at $938 million, equivalent to 14 weeks of import cover, an increase of $11 million during the winter season.
 
According to the Bank’s Governor, net private inflows increased by $19 million, largely due to the proceeds from the sale of Banks Holdings Limited to the Brazilian conglomerate, Ambev, which yielded $102 million for local shareholders and $68 million for overseas-based shareholders. 
 
The Governor stated that retail prices are estimated to have remained unchanged for the quarter and unemployment for 2015 averaged 11.3 per cent, down from the previous year’s 12.3 per cent.
 
Dr. Worrell said that although there was a two per cent decline in the number of total licences awarded in the quarter, there has been an expansion in the number of societies with restricted liability and exempt insurance management companies.
 
In the area of manufacturing, the Governor said that Chemicals, Barbados’ largest physical export, and exports of value added rum were about the same as for this period a year ago, but commodity rum exports are down.
 
He said that the estimated fiscal deficit at the end of March this year was 5.4 per cent, in excess of the targeted accrual deficit of 4.5 per cent at the time of the Minister of Finance’s Economic Statement in June last year.
 
“Capital expenditure of $201 million was $30 million higher than in fiscal year 2014/15,” he said. The Governor noted that the largest items were the Inter-American Development Bank water and sanitation systems upgrade, roadwork projects financed by the Andean Development Corporation, as well as the Smart Meter Business Transformation Project. 
 
“Capital expenditure financed from abroad was approximately  $185 million or 92 per cent of the total,” he added. (JB)

Barbados Advocate

Mailing Address:
Advocate Publishers (2000) Inc
Fontabelle, St. Michael, Barbados

Phone: (246) 467-2000
Fax: (246) 434-2020 / (246) 434-1000