BRIDGETOWN: The Government of Barbados says it is hopeful that the island’s economy will rebound by 2016.
A government statement on a recent meeting in Barbados between Prime Minister Freundel Stuart and the former President of the Republic of Chile, Sebastiάn Piñera, reported that Stuart said economic growth will allow Barbadians who made the necessary sacrifices to reap the benefits.
“During the discussions on the global economic crisis and its impact on Barbados, Piñera said Chile was following what was happening here, and the country seemed to be doing well,” read the statement.
Stuart said his administration is working on getting its fiscal deficit down to manageable levels.
However, Stuart is quoted by the statement as saying that the island was beginning to feel the effects of the falling oil prices.
“In addition, Barbados has been having a very good tourism season, with the hotels holding their own, and we expect this trend to continue,” he said, adding that government was also working in the area of renewable energy and Parliament had recently passed the new Electric Light and Power Act.
The Barbados economy is expected to grow by two per cent this year with the Central Bank reporting that fiscal adjustment measures have reduced the deficit by nearly one per cent of gross domestic product (GDP) so far this fiscal year.
In an analysis of the island’s current economic performance, the Central Bank of Barbados is also predicting that the island’s economic growth will increase to 2.3 per cent in 2016.
Last December, Finance Minister Chris Sinckler said that the local economy was on a growth path once more and that the fiscal deficit is now on a “downward trajectory”.
Sinckler said the island’s fiscal consolidation program had been effective in restoring balance to the foreign exchange market and securing the value of the Barbados dollar.