Central Bank to report on state of economy soon

Barbadians will know by month end just how the local economy did in the first three quarters of this year and what are the prospects for the future.

The island’s Central Bank has set October 27 as the date for the third quarter review by the Governor, Cleviston Haynes.

This comes as the International Monetary Fund (IMF) projects a three per cent rate of growth for the island which is currently into an IMF led programme.

There is a suggestion that the three per cent rate could be lower depending on what happens with tourism.

When Governor Haynes meets with the media on October 27 he will be outlining how the economy did in the nine months (to September), making projections for the remainder of the year and 2022.

In addition, the current state of employment/ unemployment, the rampaging cost of living, and government’s fiscal position, will be among other factors included in the review.

Earlier this week the IMF gave its outlook for the economy which it said months ago remained in a depressed state.

The revised figure comes at the same time the Fund lowers global economic growth. The forecast for global growth has been revised downwards as the International Monetary Fund and the World Bank prepare for their annual meetings. Barbados’ Prime Minister, Mia Amor Mottley, is to attend that meeting.

The Barbados Advocate has been informed that the growth forecasts which the Fund has issued for Barbados are all over the place – one moment showing output at a higher level and at another time a lower level.

Both the government and the Central Bank along with the Government’s Economic Adviser have been projecting growth in the latter part of the year on the basis of a pick-up in tourism arrivals.

The economy contracted 18 per cent last year, and nine per cent in the first six months of this year.

In its World Economic Outlook report released on Tuesday the IMF said it projects global economic growth of 5.9 per cent this year, down 0.1 per centage point from July, and sees global economic growth slowing to 4.9 per cent next year.

The Fund also cut its USA growth estimate for this year by one per cent to six per cent.