Barbados Foreign Exchange Reserves Holds Steady Supported By .6% Growth At The End Of June 2012

Text – Review of Barbados’ Economic Performance for First Six Months of 2012

0 thoughts on “Barbados Foreign Exchange Reserves Holds Steady Supported By .6% Growth At The End Of June 2012


  1. @ marlo ray!

    just what i thought you had in mind. so expected! any who ever you are the winds of gloom and doom are whimpering in the wind. just remember this economy has come a long way from almost toppling over to surely making its way back up to the top. there is more good news in store feast on those things .


  2. ac | July 9, 2012 at 8:55 PM |
    “there is more good news in store feast on those things .”

    Yippee! We have found large reserves of oil and gas off the south coast of Bim! And the Trinis are not pleased!!


  3. Like Marlo above … this entire submission is not worth a comment … but 🙂

    “Sell crazy somewhere else” … The bajan public is HIP to the sh)te coming for Mr. Worrell every now and again … He is part of our national problem and need to go like the current cast of clowns we have in the DLP leadership lead by fooly fooly .. again “please sell crazy somewhere else” ….. the bajan public is not buying sh)te these days like in 2008 ….


  4. If oil is discovered in BIM …. The current DLP administration will surely find a way to “FRIG” it up for years to come ….


  5. The DLP has the worst energy policy in the entire region, while gas prices are going down regionally the DLP still banging poor people at the pump in BIM … Oil being discovered in BIM to the DEMS simply means a reason to tax the middle class more … since they have “0” ideas on how to grow national revenues and the economy ..


  6. AC when exactly does your spacecraft leave for mars … ? we cant wait to stop hearing your sht)e on BU ….


  7. Austin sounding desperate – Poor fella- the economy just would not collapse in the face of the worst global recession in our lifetime- hmmm
    Reserves still adequate, public servants still employed,health care and education, housing, international business taxes reduced, income taxes coming down, Barbados leading the Caribbean in alternative energy initiatives-
    this economy just wlould not collapse.

    Biggest trading partners in recession or growing slowly but teh Barbados economy just would not collapse.

    I have never seen a set of more pitiful BLP yardfowls preaching gloom and doom and rejoicing at any news that might be negative.

    Go Team Barbados! The economy is not collapsing even though it is some people’s political interest to say so.


  8. Even the Governor has jumped in on the DESPERADO ACT……man a zero point six percent [o.6].%..?..wait what is dat..?..But is election time…maybe someone may mistake it for a 6 % like the CBC 1.3 Mil for 1.3 Billion vat mistake by Pearson.


  9. Boss man Owen See Thru Arthur pulls no punches

    THE BOSS MAN Owen See Thru Arthur demonstrated Kerrie Symmonds who is in charge and what he would not be standing for last weekend.

    From what we have been able to gather, he See Thru stamped his authority at a gathering where he and a couple others were supposed to speak.

    He took a strong disciplinary line and in the process gave a Kerrie Symmonds, who seemingly measures himself against the orators of yore, a reality check when Symmonds turned up late, as usual, to speak at the meeting.

    As the Symmond’s allotted time had passed, Owen See Thru Arthur let it be known that he was speaking as scheduled and his junior colleague Symmonds would have to be punctual in future if he wants a place in the starting line-up.

    While on the matter of the BLP do you know that the little girl that Indar Weir has made pregnant while driving Indar Weir’s jeep the other night leaving Long Bay crashed the jeep and destroyed another vehicle but because the two of them were stealing some sex on the side they fled the scene of the accident, thedriver of the other vehicle even though concerned about his misfortune was quickly put at ease as he was told it was an old BMW and not too many of them exist on Barbadian roads and that it was indeed Indar Weir’s and it was driven by a very young girl.

    I hope Under Wear’s wife has not seen the smashed up BMW and nor has she questioned how it got that way !


  10. ok, quick genuine question, no partisan politics if possible.
    If the strategy of “holding” disposable income from the people is to keep foreign reserves steady, and, we are indeed as is claimed meeting the MTFS targets using this strategy..why have foreign reserves fallen since December?

    Also, why did Worrell have to use the phrase “no lower than the amount recorded at the end of 2008?”

    just observing


    • @observing

      Obviously falling reserves must be a concern. The fact that the BLP holds the other position that we have enough to engage in greater spending to stimulate the economy is also of concern. Arthur and Mascoll are of the view that there is a domestic activity which the government has not factored in to its economic strategy. Then they are others who remain acutely aware that 70 cents out of every dollar takes flight. Others remain concerned that a behaviour which is fueled by consumption has not changed since the crisis and we are doomed anyway. Pick your poison.


  11. I have no problem with Good News Lord knows we need it as a nation … However DLP Lies, Distortions of Facts, Political Gamery of Public Resources, Lack of effective Leadership & Governance, Under-performing ministries, Lack of Innovative Thinking etc etc etc and I can go on on on …..
    These are the things folks like me have problem with … We not drinking that KOOLAID the DLP serving it too sweet” …


  12. Let me dissect some rubbish posted above by the human “!” character.

    1. Quote: Austin sounding desperate – Poor fella- the economy just would not collapse in the face of the worst global recession in our lifetime- hmmm

    Austin: Because we have been experienced the worst global recession in a lifetime … does not mean we have to endure the WORST GOVERNMENT IN A LIFETIME.

    2. Quote: Reserves still adequate, public servants still employed,health care and education, housing, international business taxes reduced, income taxes coming down

    Austin: Coming Down from where the DLP took it since 2008 … and EVERYTHING ELSE gone UP … Ya in getting credit for something that has not happened like most of the DLP manifesto promises (remember that document)

    3. Quote: Barbados leading the Caribbean in alternative energy initiatives-
    this economy just wlould not collapse.

    Austin: Total political non-sense and means nothing to poor people all over Barbados… come again… No real jobs yet just a bunch of photo opportunity featuring our PM.

    Ya better go drink some more DLP Koolaid and come again …


  13. Is the government waiting for the pot to burn before putting measures in place to stem the flow of forex? This is like knowing that the tidal wave is coming but doing nothing to get to higher ground where you could stand a chance of survival. It seems this government is on a suicidal mission.


  14. Poor Austin ! not from the same planet called”wishful thinking ” that the BLP has invaded with a celestial pot of 1.15billion in giveaways at taxpayers expense.


  15. What good news?
    FOREX fell at the time of the year (tourism season) when it is expected to grow and the likes of ac crowing? The first half of the year is also supposed to be the strongest and with 0.6% growth to June we are looking at another < 0.5% for this year.
    Our strongest tourism markets are down a combined 14% while we brag about a 35% increase in Trini arrivals, but Redjet is now history, spend and occupancy levels down, which tells you that the increase in Trinis did little as the people staying at friends and family and spending nothing. Unemployment has also jumped to 11.8% (who recalls Sinckler bragging during his Estimates presentation?)


  16. I did not see the press conference but I am wondering if it aint the first half of the year that foreign money from sugar despatched abroad comes into Barbados. Is that accounted for in CBB foreign position?


  17. @david
    That’s what worries me. If both strategic chlices are poison, the debate over which chalice is right or wrong becomes puerile. The question to be asked then is who is better positioned to give us a reasonable balance of poison and antidote…the fact that the external markets which we are hinging on show zero signs of significant growth should also be a source of worry.

    Just. Observing


  18. Where do I turn to find information on Government spend on international travel (politicians and public servants)…?

    Incidentally I saw a clip on TV of Rosemary Alleyne in a towel entering some bath in Japan and some comment being made about her being prepared to show more had she not been on family TV. Of course my participation as a audience was minimal, but seriously, is this woman a fair representation of what a Barbadian woman looks like (with or without a towel)? And where is the money coming from to entertain these seriously undeserving, talentless pretenders in engaging in such frivolous and expensive (in so many ways) campaigns?


  19. The Governor is truly political too.
    On one hand he is saying that the reserves fell and need to be protected, but must add the current amount is no lower than at the end of 2008. He says dampen demand but the Budget just released $30m+ in tax relief (according to Sinckler) and a big push for RE that relies on heavy importation. He further says that the recent Budget was “designed to boost foreign earnings” and there’s the possibility of $100m in private capital inflows. Simply too much double speak.
    This is all a ploy to take aim at the Bees suggestion to use FOREX to help spur economic growth.


  20. @observing, enuff et al

    It might be useful if anyone can clearly articulate the argument from the Opposition espoused by Arthur and Mascoll that part of our forex can be used to stimulate domestic activity. To be honest BU continues to struggle with the view.


  21. @ David | July 10, 2012 at 9:14 AM |

    Then Barbados is caught between a domestic stimulation rock and a forex hard place. The economic downward spiral is in full motion and nothing can save it but rock bottom. Government revenues depend heavily on VAT which in turn depends on high domestic demand which in turn depends on increasing or stable foreign reserves. The only way out is to increase foreign income which we all know is drying up by the day. Loss of foreign revenue from reducing tourist spend, fall off in international business, drying up of FDI and reduced remittances from the Bajan Diaspora do not paint a rosy picture for Barbados foreign reserves. With these growing fears one can expect an increased flight of financial capital from Bim to reduce risk exposure starting with the repatriation of retained profits and management fees by the banks.


  22. But if there is a FX crisis why is it that these VAT receipts dependents finding every excuse to jump onto a plane and travel (with entourages)? How does an ordinary citizen, particularly one that is asked to tighten the belt, track the amount of FX that is spent on globe trotting by public officials?


  23. Poor Austin, your feelings were hurt. Listen, the Central Bank report clearly shows that the promises that the BLP are throwing at people to get votes are wild, reckless and not suited to this situation.
    How could you talk about letting people spend wild when this economy is so dependent on foreign exchange. If the tourists are not spending and the inflows are not flowing because of recessionary conditions in your source markets, you cannot embark on some expansive fiscal policy unless you balance it by major expenditure cuts (sending home a few thousand government workers) and that will also depress aggregate demand.
    In this context any politician who is promising subsidies,and this fund and that fund as Mottley did without identifying where the cuts will come from is trying to fool the public.


  24. In 1994, when the BLP tool office the World economy was already rebounding with the US and the UK leading the way.
    In 1995, the UK economy was growing at 3.1 % contrasted to in 2012, the UK is in recession with plans to send home half a million civil servants over the next few years.(many of whom would be current and potential tourists) That is the reality of our source markets.
    I go further, in the 14 years when the BLP was in power, the year that the economy did not grow was when the US AND UK economies took a shock from 9/ 11.
    Do not let anybody fool you that the global economy is the not the major factor at work here.
    In 2012 US growth is very anaemic and the UK is in recession- the expansionary fiscal policies of the late 1990’s are not suited for this environment but politics is politics and the BLP leaders will tell their supporters what they want to hear.
    It is up to intelligent people to read between the lines or fool themselves into beleiving in a non existent economic messiah who will come and bring BLP tourists who were waiting for the election to come along with cheap oil.


  25. I find it very very hard to believe that this economy has grown. I speak to senior people in most distribution companies in Barbados almost and all are saying business is really, really bad. Layoffs are pending at several retail companies unless consumer spending is resurrected in the next few weeks. Tourism will continue to fall because of the high cost of living as government continues to shoot itself in the foot which this ridiculous tax regime. You cannot buy everything duty free, when you leave the hotel you must eat who wants to pay $7-10 U.S for a snack box and a drink when you can get a 6 piece family meal for that in the US. Politicians make too much money they are absolutely out of touch with the commmon man.


  26. What has become patently clear in the last 10 years or so is that we don’t know what we want as it concerns food security. Do we go the root recommended by Peter Wickham and create a model which generates ’nuff’ forex to buy food or should we use technology to develop an agriculture strategy which helps to build some semblance of a food plan.


  27. While I have a reservation about such a “key figure” as the governor of the Central Bank saying exactly the same thing as or endorsing the Minister of Finance shows me that their is not a level of independence I would wish when considering the B’dos economy. Any one ever notices tho how the Governor looks like Kermit the Frog in an over-sized jacket? Just wondering, it sends a message of a puppet and his strings being controlled. That’s just me..hahahaha


  28. Crabbie

    The Governor’s physical appearance is the most accurate thing about him. One look at the character and you KNOW what you are facing. He did say that there was nothing wrong with a GoCB being a creature of the Prime Minister. Every trait that I hold abhor in the typical product of Crumpton Street High, is plain to see in the GoCB.


  29. Look, Growth is a shite concept, one that is forced down the throats of WestMinister trained academics. It is designed to promote blatant consumerism which is of course at the core of the capitalist agenda. For a country that views itself as developing there are far more standards out there to be bench marked against.


  30. @miller

    It seems that the solution rests with growing forex inflows and at the same time reduce foreign imports and consumption. A conundrum if ever there was one.


  31. @David | July 10, 2012 at 4:34 PM |

    And that is why we must aggressively pursue alternative energy solutions where ever possible and push for a more affordable locally focused culinary mix. The same way the propaganda agents (marketers and advertisers) can sell alcohol, cigarettes and foreign food and consumer products why not employ them to promote the benefits of home grown ‘organic’ foods and other products;
    which is a fast growing business in the USA, UK and Europe. A similar effort can be made in respect of the use of local herbs and plants instead of synthetic pharmaceuticals thereby stimulating micro businesses aka ‘cottage industries”.
    Government must be really serious about renewable energy and stop pussyfooting. Announcing green sweet talk in the Budget is not enough. Let us see some real action on the ground starting with the government vehicles and buildings. Each school should have a set of” green” targets which should go towards the students’ assessment for progression to higher learning.
    What sayest thee, David?


  32. @ david
    Why are you struggling with the view?
    You can only form an opinion if you know how much money the BLP intends to spend from the FOREX account. What are the costs vs benefits? Risks? It is worthy to note that current reserves are higher than 2004, 2005 and 2006.

    While the GoCB is talking about the 35% increase in Trini arrivals the decline from the US and UK is more than 2.5 times in real terms greater: 4,031 vs 10,976. Look at Brazil down, 91 visitors per flight for the year: 50% capacity if it is the Boeing 737-800, 63% if the Boeing 737-700. How much FOREX are we paying Gol for those empty seats?


  33. @Crabbie
    There is no independence.. Not even an attempt to present an appearance of one.


    • @Miller

      Agree and we need to hear what the government in waiting has on the cards. There is the suspicion it will dust of the exploration project and go for the black gold off the West Coast. The result RE will revert to the back burner.

      @enuff

      Still waiting for an explanation.


  34. @ David
    I aint in the BLP lol. But couldn’t spending some money on our hotel plant create construction and multiplier jobs while improving our product leading to a more competitive industry? Growth, jobs and +-Forex vs no growth, no jobs and -FOREX.


  35. @ David:

    Do you know when the Four Seasons project is earmarked to restart?
    What is the hold up? Is this project under the radar of the Minster of Tourism or the Minster of Finance? The restart of this project would be a fillip to the local economy provided the bulk of the labour employed is local.


  36. Now tell me has Four Seasons.been sold to Butch Steward or Bejorkin ?
    These are things we need to know……why how much money just been injected by the NIS funds……Oh by the way…. we also have a Trini Nat Gas pipe line coming …more money to draw from the NIS Fund..

    The only one left to buck in the Sh#…is we the people…back broad..while we FLY…..Budget said it all…..waana shut to F up…. its all about ….We politician….two pensions included…..


  37. News coming from Economic Dept of the UWI on the hill……Barbados under stagflation……economy needs a boost, ( which the Budget failed to give)……I said it about 6 weeks ago…

    but eva body luvs chris,,,


    • @Onions

      Who on the Hill should we listen?

      Did you hear Dr. Frank Alleyne as well on the need to protect our import cover?


  38. @ David
    Is Dr. Frank Alleyne the only economist on the Hill ? Did we not inform BU in another thread from our even more proactive economist….that Barbados was experiencing stagflation 6 weeks ago …way before the budget? The longer we wait to address matters, the more difficult will be to recover.
    So as was with the four parachutes, deaf ears….an opening of $2.8 Billion in reserves…and we are at this sorrowful position today…..

    Why if we don’t take ova soon…heavens help what used to be paradise.


  39. Why that is without any debate….a most easy one….in light of the STABLE….no more horses please

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