Barbados’ economic forecast is looking cloudy. A group of Government’s economic advisors is urging the Freundel Stuart administration to maintain jobs and search for “further growth” measures, as Barbados faces “a high degree” of economic “uncertainty” in the coming months.
And with global food prices causing fresh concern, economists and analysis assigned to Research and Planning Unit within the Ministry of Finance and Economic Affairs said if the problem worsened authorities would have to contemplate “some policy adjustments”.
In the latest edition of their Early Warning System report released last month, the Economic Affairs Division team said the island continued to face some economic challenges and 2013’s economic picture appeared cloudy. The report said chances of a strong economic recovery “will hinge on external developments in major source markets over the next six to 12 months”. “However, efforts to maintain fiscal stability while seeking domestic measures to maintain and even enhance employments levels must be explored. The focus must be to continue to maintain employment while looking for further growth measures over the short to medium term,” the ministry team stated. “The implementation of recently announce Budgetary measures, particularly those speaking to income tax adjustments will be beneficial to those individuals with a higher propensity to consume. “With the current global uncertainty in food prices, some policy adjustments may have to be made in the event higher global prices are pass through to domestic prices,” it added. Examining the performance of key economic indicators in the first half of this year, the analysis said the ???