Bim can ‘hold out’

Economic activity in Barbados will continue to be “weak”, but the island has enough financial room to “hold out”.

That’s the prognosis of Jamaica Money Market Brokers, the Caribbean’s largest investment brokerage firm, in a new analysis on Barbados.

“Given the sluggish outlook, economic activity in general and revenue inflows should be weak. Tourism flows should be reduced, the net international reserves may be negatively affected by lower net capital inflows and business activity may be weak given the downgrade to non-investment grade,” JMMB said in its November investment and sovereign research document.

“Despite these negatives, however, Barbados does have some room to continue to hold out, given its relatively low debt ratios and tight fiscal controls.”

The organisation noted that because Barbados was a small open economy “the global headwinds should indicate the direction of growth”.

In this regard, it noted that happenings in the important United States and European markets would likely determine Barbados’ immediate economic future.

“With the ‘fiscal cliff’ in the US fast approaching and the possibility of a breaching of the debt ceiling again causing a bottleneck in congress, growth is a concern for the US,” JMMB stated.

“The Eurozone debacle is far from over and recovery is not anticipated over the next two years. Growth in emerging markets has also taken a slight hit with investors now tempering expectations of robust economic activity for China, India and Brazil,” it added. (SC)

2 Responses to Bim can ‘hold out’

  1. Tony Webster December 6, 2012 at 6:41 am

    IF this; IF that; Maybe this; Perhaps that. By chance we could even sell some “IF’s”…IF there are any buyers, and IF Barbados doesn’t sink below the waves. Why do I recall the lament of a business-man, who said he had no more time for highly -trained economists who always prefaced their prognostications with the caveat: ” On the one hand” …and towards the end of their spiel, added “On the other hand..” He thundered: “For GOD’s sake, give me a one-handed economist!” And this is waay previous to the arrival of this wonderfully-intertwined, connected, and ultra-dynamic “global economy”…like Medusa’s hairdo, perhaps?

  2. Patrick Blackman December 6, 2012 at 8:54 pm

    The problem with Barbados and most other islands is that we have the mentality of its mine and all mine. There is no desire by businesses to partner, reduce cost and everyone make a profit. It is better to be a 10% owner of a million dollar company than a 100% owner of a $10,000 one. The point her is that they need to understand there is strength in numbers but also beware of idiots in a group, they are very dangerous. All the economies in the region are too focused on tourism (it is like sugar dead), self sufficiency should be the goal…. not just supporting a few rich people in the island who own the hotels and villa.


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