Acting Governor of the Central Bank of Barbados, Cleviston Haynes, during yesterday’s press conference.
‘Overcoming challenges requires strong, sustainable fiscal effort’
Despite the moderate economic growth and policy-induced reduction in the fiscal imbalance of the Barbadian economy, it continues to face significant economic challenges.
Word of this came from Acting Governor of the Central Bank of Barbados (CBB), Cleviston Haynes, during a press conference that was held at the CBB Headquarters yesterday morning.
“The challenges facing our economy remain significant and overcoming these challenges requires a strong, sustainable fiscal effort that contributes to restore confidence, increase investment activity and a rebuilding of our reserves,” he said.
“The path to stabilisation and growth will require difficult choices, but I believe that we have it in us to face up to and overcome these challenges.”
The Acting Governor went on to note that the Barbadian economy grew by an estimated 1.4 per cent over the first nine months of 2017, as economic growth moderated in the third quarter of the year. However, he noted that the tourism output, which fuelled the stronger growth performance over the first half of the year, fell during the third quarter as a result of a reduction in the average length of stay of visitors and hurricane-related disruptions to tourist arrivals in September.
Haynes revealed that the Government made some progress in reducing the fiscal deficit, due to increased revenue arising from fiscal measures implemented over the past two years and the stabilisation of its expenditure.
“The scale of fiscal and debt imbalances now require significant structural reforms, related to the public sector financial management and improved tax administration,” he stressed.
Haynes posited that the impact of fiscal measures is expected to cause an increase in the price level, which will result in an above average inflation of rates in 2017 to 2018. He added that these measures were also anticipated to dampen expenditure, and growth is forecasted to happen within the range of 1 per cent to 1.5 per cent for the calendar years 2017 and 2018.