1.6 per cent growth forecasted for 2016

THE current forecast for economic growth in 2016 is 1.6 per cent. That’s according to the Central Bank of Barbados in its outlook for the rest of this year.

The Bank’s Governor, Dr. Delisle Worrell, revealed yesterday that the 1.6 per cent projection is based mainly on tourism and ancillary activity.

“Summer airlift capacity is forecasted to be up 4.5 per cent, with increases from the UK and US,” said the Governor. He also noted that total investment in infrastructure, tourism facilities and alternative energy is expected to be 23 per cent higher than last year.

He pointed out that the fiscal deficit for 2016/2017 is projected to be five per cent of GDP on the basis of expenditures approved by Parliament two months ago.

“This compares with projected nominal growth of GDP of 2.3 per cent (real growth of 1.6 per cent, plus a deflator of 0.9 per cent implying a further increase in the gross debt to GDP ratio,” Dr. Worrell said.