Barbados economy records 1.3% growth
Tue, 10/25/2016 - 7:36pm
A pick-up in construction activity and business and other services, along with more growth in tourism, fired the Barbados economy to a 1.3 per cent growth rate for the nine months ended September 2016.
In addition, the slide in the country’s foreign reserves was halted somewhat from what had taken place up to June this year, although the levels are still below those of one year ago.
Reporting on the performance of the economy for the period between January and September this year, Governor of the Central Bank of Barbados, Dr. Delisle Worrell said that the economy expanded 1.3 per cent “thanks to improvements in the tourism sector (three per cent), construction (five per cent), and business and other services (three per cent)”.
The top economist also highlighted that the average employment rate fell to 10.2 per cent by June this year and that inflation remained in negative territory, with the price index falling by 1.2 per cent.
Dr. Worrell noted that the stock of foreign reserves at September 2016 stood at $900 million, representing 14 weeks of import cover.
He pointed out that Government’s fiscal consolidation has assisted in the maintenance of a level of reserves that are above the 12-week benchmark.
The Governor also pointed out that maintaining the value of the currency hinges on the current fiscal policies that aid in dampening the demand for foreign exchange. The reserves had declined to $884 million at June thisyear. However, for the corresponding period to September 2015 the country’s reserves were $977 million according to the Bank.
Between January and September this year, the country welcomed 432 700 long stay visitors or 5.7 per cent, with the USA market growing 10.7 per cent, Canada 1.0 per cent, the UK 2.6 per cent and CARICOM 13.0 per cent. All other markets declined.
The Governor added that Barbados ranks seventh in the Americas in the competitiveness of our tourism. Ahead of Barbados are the USA, Canada, Brazil, Mexico, Panama, and Costa Rica.