Barbados’ international reserves continue to fall

Serious challenges linger for the Barbados economy, Acting Central Bank Governor Cleviston Haynes disclosed today.
In his report on the island’s economic performance for the first nine months of the year, Haynes outlined a worrying slide in already low international reserves.
At the end of the third quarter, reserves had reached 8.6 weeks of import cover, which is below the international benchmark of 12 weeks.
Overall, the economy grew by an estimated 1.4 per cent for the period under review, largely fueled by the performance of the tourism sector which expanded by 4.1 per cent compared to 2.8 per cent growth of the corresponding period in 2016.
The Government, however, made some headway in reducing the island’s high fiscal deficit.
“The fiscal deficit was estimated to be $279 million for the first six months of the fiscal year, a $115 million improvement over the same period in 2016,” the Central Bank report said.
Governor Haynes said despite the moderate growth and some improvement in the fiscal imbalance, the Government must take urgent action to halt the slide in international reserves to protect the country’s exchange rate.
He underscored that Government must maintain a tight hold on its expenditure to allow recently introduced tax revenue measures to reduce the debt overhang and place the economy on sustainable footing.

17 Responses to Barbados’ international reserves continue to fall

  1. Miguel Carlos Jose Humphrey
    Miguel Carlos Jose Humphrey October 31, 2017 at 3:27 pm

    we are using borrowed money…not our own !! So what do you expect ?

    Reply
    • Eddy Murray
      Eddy Murray October 31, 2017 at 3:47 pm

      Not only that, the £ keep on falling an we depend on UK visitors and land buyers for our money, what we expect to happened.
      Next if you continue to send people from other countries where you expect the money to stay not at home.

      Reply
  2. Stanton Peace
    Stanton Peace October 31, 2017 at 3:54 pm

    does Mr Stuart or Chris Sinckler have an economics degree and are they legal to practice on this economy lol

    Reply
  3. Lilian Lloyd
    Lilian Lloyd October 31, 2017 at 4:01 pm

    MORE REASONS TO VOTE DEM OUT.

    Reply
  4. Alex Alleyne October 31, 2017 at 4:16 pm

    I ain’t hear noting from he in a while, so I was thinking that “all is well’ . Now he come throw me a curve.
    Is he hinting that Government should send hope some of it’s staff.???????????????????????????????????????????????????. in order to keep cost down.

    Reply
  5. Adrian Hinds October 31, 2017 at 4:30 pm

    open the economy to more barbadians as entrapeneurs. Limit the power of Barbados public sector unions. scale back the numbers of the conscripts in the army of occupation in the Barbados civil service. But I’m afraid we are heading the other way of strengthening and expanding the control the current private sector players have on the economy; Increase the difficulty regular barbadians experience trying to become owners of enterprise while making it much easier to remain in consumer status in perpetuity.

    Reply
  6. F Inniss October 31, 2017 at 4:54 pm

    To all Bajans, do have a Happy Independance Day.

    Reply
  7. Ann Thomas October 31, 2017 at 5:22 pm

    Surprise, surprise. Country going to hell in a hand basket and all they can worry about is who got what and who ain’t got what.

    We all know they ain’t got a clue.

    I hope dem understand that when the bell ring, we ain’t interested in any history lessons, any spiritual quotes, any classes on morality or any other red herring that might hop across the path.

    We want to know why the economy is not growing, and don’t blame the recession either, why we can’t drive on good roads, why we have to put up with a constant stream of failure.

    Reply
  8. Leroy Martyr
    Leroy Martyr October 31, 2017 at 5:25 pm

    Barbados have too many foreign companies sending the money back home to the parent company

    Reply
  9. Richard Johnston October 31, 2017 at 5:28 pm

    Linger? You must be kidding.

    Reply
  10. BARBADOS FIRST/PATRIOTIC PARTY (BF/PP) October 31, 2017 at 7:06 pm

    BARBADOS FIRST/PATRIOTIC PARTY (BF/PP) October 29, 2017 at 7:10 AM #
    Barbados First / Patriotic Party (BF/PP)
    of member = 0 (at present).
    Hello fellow Barbadians.
    We all know of Barbados problems with the most important being the state of the economy.
    High Debt
    High Deficit 
    High Taxes
    Low Growth 
    Low Productivity
    Lack of leaders to make the hard decisions and lack of patriots to make the necessary sacrifices.
    Barbados First / Patriot Party (BF/PP) would like to see the following combinations of solutions implemented to try to resolve Barbados economic problems.
    Repeal the Owen Arthur/BLP law that prevents  government from reducing a public worker wage or salary without his/her consent. If this is successful or fails then…
    Negotiate with the Unions, a Public Service salary cut of no more than 5%. All Member of Parliament salaries would be reduced by 5% – 8% for every 1% sacrificed by the public workers. This is in keeping with being patriotic and MP showing leadership in making sacrifice (putting Barbados First).
    The above sacrificing measures (may be considered unpopular) will reduce Government expenditure as was done under the Sandiford/DLP administration. It is proven to work and is needed again today.
    A two years hiring freeze on all government agencies except the Essential Services. This would be reviewed in partnership with the Social Partners at the end of the two years. (This will further allow Government to reduce its bloated workforce through attrition).
    The NRSL/VAT will be reduced to help alleviate the Sacrifices of the Patriotic Public Workers. The Private sector will have to reduce their prices accordingly.
    BF/PP is opened to going to the IMF to accommodate debt restructuring
    BF/PP would also seek to govern within the Social Partnership.
    The salary cut will reduce expenditure/ reduce deficit, this will allow for the cut in taxes which should lead to a reduction in prices/cost of living as well as an increase in competitiveness and higher growth.
    BF/PP would also seek to divest:
    1.CBC –  with option for the workers to become owners or part owners.
    2.Hilton Hotel – same option as above
    3.Transport Board – Same option as above. And only after provisions are put in place to accommodate the elderly, schools and disable.
    To address productivity and accountability the Unions, Main Opposition Party and Accountant General will EACH get to select one member on all boards.
    BF/PP will also SEEK to have public workers increases to be tied to the increase in GDP with bonuses as incentives to increase productivity and attendance.
    Politically: All members seeking to be elected to parliament will declare their assets, liabilities and publish their last year tax return.
    Provisions will be put in place for the constituencies to recall their MP after 2.5 years
    Unfortunately BF/PP has no members and is therefore unable to take part in the next general elections.
    BF/PP is now seeking members for ALL level.
    If you are of like mind, Patriotic, willing to sacrifice and is interested in putting Barbados First,
    Please send an email of interested to:
    BFPPBDS@Hotmail.com
    Thank you
    Barbados First / Patriotic Party (BF/PP)
    Putting Barbados First!
    Pride and Industry.

    Reply
  11. BARBADOS FIRST/PATRIOTIC PARTY (BF/PP) October 31, 2017 at 7:21 pm

    One main party brought Barbados to this point by its’ mismanagement of the economy for over the last 8 years.

    The other main party is promising to repeal all the revenue making policies of the other party.
    Beside the REPEAL promises there were also talk/support for giving the public workers a salary increase

    How are we going to pay for the salary increase and the free education?

    BF/PP think it is interested that with all of the promises made that there was no mention of or no promise to keep all public workers employed

    Reply
  12. Loretta Griffith October 31, 2017 at 7:45 pm

    Congratulations to the acting Governor of the Central Bank. I am very pleased with (in my opinion) his very lucid delivery of the report.
    For me there is a level of confidence permeating the country.

    Let’s hope that our country continue to prosper and grow from strength to strength. I do not have dual nationality or wealth, so it’s here I belong and will remain.
    Congratulations once again to the acting governor and staff. Keep your integrity intact and all should remain well. Never for once let anyone try to make you compromise it, else you be eventually thrown under the bus. When you look in the mirror you should always like what you see.
    Continual success.

    Reply
  13. john q October 31, 2017 at 8:00 pm

    Mr Humphrey is so right……. Bajans are living on borrowed money and borrowed time. This bubble is going to burst real soon ……

    Reply
  14. Roy Benjamin
    Roy Benjamin October 31, 2017 at 8:04 pm

    This report is damning. The question though is what does Government plan to do to get us out of this hole? The Minister of Finance and the Prime Minister need to tell Barbadians what their plan is.

    Reply
  15. Harry October 31, 2017 at 8:07 pm

    BF/PP you say the party has 0 members, but it must have at least one. Please identify yourself so that prospective members are aware of you are.

    Reply
  16. Loretta Griffith November 1, 2017 at 5:27 am

    John q, Barbadians have always been living on borrowed money, it would appear. That is why we are now reaping the world wind. It would seem we were living a lie longer than we thought.

    Reply

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