The Barbados economy grew by 1.3% over the first six months of 2016, compared to virtually no growth a year ago. This was a slight deceleration from the first quarter, mainly on account of unexpected delays in major tourism investments projects…
[youtube=https://youtu.be/yrCzHRSPJ3A
Press Release June 2016 Final.pdf (1.03 MB)
Subscribe to get the latest posts sent to your email.
After all the talk we have to impose foreign exchange control in Q2 after registering a 43 million dip?
Manufactured growth…….the numbers do not add up to the projected growth. But I guess it has to be to reach the 2% growth projected by year end.
NIS contributions down notwithstanding an “increase” in employment levels; “primary surplus” reduced by $14m (primary surplus?); and $300m in printed money. Why did the Governor avoid mentioning the growth for April-June instead of piggybacking on the Jan-March 1.7% growth? Yet George Pilgrim penning letters to the newspapers contending that the government’s policies are working. Where, how, when, what and for whom?
@enuff
The question to ask, with more controls of forex to come how will it engender confidence by players in the economy, the investors, consumers; citizens et al.
The place is falling apart…
…and the ‘solution’ being applied is to push our heads further into the sand and visualise success. Our leaders are so damn stupid that they seem to actually see this as a viable approach… but the brass bowl PEOPLE take the cake….
Judging from the numbers of ‘happy’ people at Soca on de hill etc …it seems to be working.
Interesting the Governor was critical about the time it has taken to mobilise projects. Who is chairman of Cabinet sub Committee again responsible for infrastructural development?
My bet is that many of these investment projects are delayed because the principals have seen what Sandals have achieved and now want it for themselves.
This reprehensible DLP Government is the CURSE in Barbados, the voters shall CURE Barbados when the UGLY Demonic leader is force to hold election
Eddie Abed’s comments as reported in the Nation today are correct. Just talking about foreign exchange restrictions will cause a false demand for foreign exchange. It will become a self-fulfilling prophecy. Worrell is a fool.
Peltdownman July 20, 2016 at 8:11 AM #
“My bet is that many of these investment projects are delayed because the principals have seen what Sandals have achieved and now want it for themselves.”
@ Peltdownwoman
I may be wrong, but my bet is the “delay of these investment projects” may have something to do with the following:
“When the Central Bank removed the minimum deposit interest rate stipulation in April 2015 an attempt was made to narrow this gap and REDUCE the Barbados RISK PREMIUM, through INTERVENTION at the Treasury bill auction. However, because of Government’s CASH FLOW NEEDS, the MINOR rate reductions achieved could not be SUSTAINED.”
Peltdownman July 20, 2016 at 8:11 AM #
My bet is that many of these investment projects are delayed because the principals have seen what Sandals have achieved and now want it for themselves.
Sandals Barbados is losing money despite concessions, not a good example.
There has been no foreign investment for eight years because First World citizens can be prosecuted for paying the bribes demanded.
Locals not investing due to lack of facilitation, local banks flush with cash they can’t give away.
You can’t stimulate an economy without risking the exact ForEx crisis we now face, the two are contradictory.
The desperate hope that a new Minister of Planning can somehow un-jam a useless civil service and encourage foreign investment through construction again is a joke, it took them two years to kill it and it will take ten years to rebuild it.
@ FB
On what basis are you saying that Sandals is losing money?
If they can’t make money with all those concessions nobody can.
I have heard the stories of the bribes demanded. I just wish someone would get it on tape.
Old Baje July 20, 2016 at 10:00 AM #
“If they can’t make money with all those concessions nobody can.”
@ Old Baje
Sandals is renovating Almond Beach Resort, which it purchased at the cost of BD$250M, as well as refurbishing the Dover Beach property to accommodate an additional 222 rooms and suites, while creating an additional 520 new jobs.
Yes, I’m curious to know how Sandals in losing money as well.
On point of order why in Parliameny yesterday did the BLP use all kind of goobly junk excuses to abstain on the vote to extend the retirement age of the auditor general and Dpp listening to Dale Marshall pontifications one got the belief the man had lost his marbles
Can we get the Walter PPK Blackman on this post, his talk about skills should afford him some shooting points, can he change the range?
If any economists are following the blog please comment on the continuous printing of money by the Central Bank and tell us how this is going to play out.
Consumers will continue to present BDS dollars to buy imported goods and sooner or later the Central Bank will not be able to supply enough foreign exchange because we are not earning enough.
But what I want the economists to comment on is how this slow motion train wreck will play out.
Artax July 20, 2016 at 10:12 AM #
“Sandals is renovating Almond Beach Resort, which it purchased at the cost of BD$250M, as well as refurbishing the Dover Beach property to accommodate an additional 222 rooms and suites, while creating an additional 520 new jobs.
Yes, I’m curious to know how Sandals in losing money as well.”
Oh – Sandals is renovating ABR?
Since when? My understanding is that Bernie Weatherhead is managing part of the rooms at ABR which I thought is owned by GOB.
Sandals bought it for BD$250M? Has Sandals paid the BD$250M or did GOB lend Sandals the money. Or did China lend the money.
I too am curious how it can be said that Sandals is losing money when the privately owned Jamaica?, US? or Panama? based company does not publicly disclose its financial results.
@ FB
You need to substantiate your claim that Sandals is losing money in Barbados.
@ Old Baje
I will ask Piece to produce 2 T. shirt for you, first shirt to wear now to show the DLP wreck train in slow motion.(If the voters get a chance to derail this demonic train before 2018) second shirt show where to discard the wreckage , my question will you wear them?
What does Dale Marshall mean by priorties and how can he be connecting two separate and distinct issues as being relevant on those other issues that had an impact on the economic performance cojoining what can be accounted to years of misappropriation due to neglect under the blp administration
His castigation of present govt is also a reflection of the many prioties most noticebly the water woes which which the blp did not care or neglected to prioritize in fourteen years of govt.
“There was a 3 percent decline in the number of international business and financial services (IBFS) licenses granted during the first half of the year. The number of international banks stood at 28, with 6 banks having closed operations since the beginning of the year.”
So, there were 34 international banks before 6 banks closed operations since the beginning of the year, an 18% decline.
Bad news for the accountants and lawyers
Perhaps Donville can explain why this growth sector is shrinking.
All the posturing and lies by Stuart,Sinckler,Worrell and the proof of the pudding is in the eating.The economy is in trouble.Xmas coming and Eddie and his group ordering stock all like now.Worrell is therefore warning them……just like what Trinidad did…….US dollars will be in demand so a warning to the business community,expect controls again,first time in ages!
Due Diligence July 20, 2016 at 12:04 PM #
“Oh – Sandals is renovating ABR? Since when? My understanding is that Bernie Weatherhead is managing part of the rooms at ABR which I thought is owned by GOB. Sandals bought it for BD$250M? Has Sandals paid the BD$250M or did GOB lend Sandals the money. Or did China lend the money.”
@ Due Diligence
My above comments were based on the following article I read in the Jamaica Observer:
Jamaica Observer: Sandals’ investment in Barbados cited as bright spot in economy
Friday, June 13, 2014
BRIDGETOWN, Barbados (CMC) – Barbados Hotel and Tourism Association President Patricia Affonso-Dass has described the investment by Sandals International in that country as ‘encouraging’, citing current investments in the local tourism industry as the ‘bright spots’.
Sandals is renovating the landmark tourism property, Almond Beach Resort, which it purchased at the cost of US$125 million (Bar$250 million).
Sandals already has another property — the Casuarina — under renovation, and Affonso-Dass observed that with that company forking out its own money for property upgrades, Government is left to direct its capital support at other real estate in the sector.
She noted other investor property buy-ups, including a takeover of Amaryllis that is set for renovation and the purchase of Four Seasons. Financial investments also affect Sandy Beach, which is being converted into a condo hotel; and there is planned development for Settler’s Beach.
Old Baje July 20, 2016 at 12:07 PM #
@ FB
You need to substantiate your claim that Sandals is losing money in Barbados.
Because the Sandals model is based on nearly twice the number of rooms that existed at Casaurina, hence the current expansion project.
The Almond property was purchased by Butch to build a Beaches properly.
Re what Mr Arthur said in Parliament yesterday…..what he is saying in absolute terms is true but at the same time is not an absolute truth as the Opposition has not been opposing for opposing sake up to now…..It is similar to the gov’t wanting to restore their 10%….people can understand that MPs use their money to help constituents but cannot agree this is the right time to do it. At the end of the day bajans are smart, they hear what he is saying but do not care as it is seen as looking out for the benefit of two persons while the rest of Barbados sucking salt….i seen the abstentions as a message to this govt that way past its “best by” date that they do not disagree with the motion but get the rest of Barbados in order first….
ac July 20, 2016 at 10:29 AM #
On point of order why in Parliameny yesterday did the BLP use all kind of goobly junk excuses to abstain on the vote to extend the retirement age of the auditor general and Dpp listening to Dale Marshall pontifications one got the belief the man had lost his marbles\
……………………………………………………………………………………………………
It beats me why this government would want to extend the retirement age of the Auditor General, when at present they treat the position like a little boy in the yard. I would think that the present incumbent would instead, settle for an early retirement.
@Colonel Buggy
A reasonable observation. Successive governments have mostly ignored reports produced by his Office.
> >
@ FB
I understand what you’re saying but many of the overhead costs are semi-variable, espcially the labour component. They probably can’t justify the restaurant capacity at this point but I still doubt they are losing money.
David July 20, 2016 at 1:01 PM #
“The Almond property was purchased by Butch to build a Beaches properly.”
http://www.sandals.com/news/article/id/516/
Sandals and Beaches to Make Double Debut in New Destination: BARBADOS
OCTOBER 18, 2013
“In addition to the opening of Sandals Barbados, SRI also announced that an agreement has been reached with the Government of Barbados regarding the building of a brand new Beaches Resort at the site of former Almond Beach Resort in St. Peter, Barbados.”
In fact part of the former Almond Beach Village (Heywoods) was reopened in January 2014 as Almond Beach Resort by Sun Group, which is managing the property owned by? – GOB or SRI, Butch’s Panama based holdco.
https://www.almondbarbados.com/news/7-grand-re-opening-february-1-2014.html
Sun Group subsequently announced “It is with great pleasure, we wish to confirm that Almond Beach Resort will continue operations and continue to take reservations through to June 30, 2017. All services offered through this period will remain the same. We wish to assure you that the entire Sun Group team will continue to offer all of our guests an excellent Caribbean experience.”
So what happened with the 2013 agreement reached with the Government of Barbados regarding the building of a brand new Beaches Resort at the site of former Almond Beach Resort in St. Peter, Barbados?
Did SRI actually buy the property from GOB (that bought it from the Trinis) or just reach an agreement with GOB to build of a brand new Beaches Resort at the site of former Almond Beach Resort in St. Peter, Barbados, when SRI gets around to it?
Is this one of the unexpected delays in major tourism investment projects the Guv mentioned?
@DD
This is a link that addresses the stalled Beaches project. Remember the Governor referred to these stalled tourism projects.
http://www.loopnewsbarbados.com/content/no-start-date-yet-beaches-barbados-resort >
I thought that as per usual, in the House yesterday, OSA was again being his nasty self. I am so disappointed in this man. The Bible cannot lie…..do not put your trust in man.
This government knew that it did not have the votes to make the change to amend the constitution but still went ahead……thus showing us how arrogant they are. They think that they can continue to run rough shod over the BLP.
Well, they finally learnt their lesson. Sweet!….just a taste of what is to come.
The thing is the BLP told them they had no problems with the amendment but of course these wildboys do not care about a fellow which was confirmed by the Fumble’s remarks after….you aint begging a fellow to support the bill…………well if that’s the way you are acting…… deal with it.
This was an inappropiate time to bring this bearing in mind that this government sent home workers from BIDC who were 60 and were reaching 60 years……..and were unappologetic about it. Donville Innis was adamant that they had to go. The Tribunal capped the reimbursements to the dismissed workers at one year even though they were left in the wilderness for two years and counting………
This gives the poor masses they claim to represent the feeling that we will look after the big boys and to hell with you…..you are only useful to us at election time.
David
Thanks for the link.
Tourism Minister Richard Sealy quipped that it would be “nice” for him if the St. Peter project were completed by 2018.
Given that Sun Group is taking reservations for ABR through June 2017, and it will take a couple of years to build Beaches after the existing buildings are demolished, I think Minister Sealy will be disappointed.
Completion, should SRI decide to proceed with the 2013 agreement, is more likely to be 2019/2020.
Oh please !Prodigal u sounding more ignorant that Dale the “duffus”Marshall who rather than kept his ignorance to himself use parliament as a political soap box with his silly rants to hoodwink the voters that the blp cares so much when evidence has shown that many of the issues brought to table on the concerns of social problems where ignited under the blp goverance.
Now since you have lend an approval of the blp opposition pray tell the relevancy of what dale the “duffus”said as a response on the issue of an extended retirement age
This is the same irrelevant card which the blp played on the govt reinstatement of their wages when they accused tge govt of seeking a raise hike on the backs of the poor
IMHO the govt needs to stand strong and firm agsinst this type of rubbish mouthings which the desperate blp used as whipping agendas to rally support
DLP (formerly CBC) TV and Radio July 20, 2016 at 1:17 PM #
“Re what Mr Arthur said in Parliament yesterday…..what he is saying in absolute terms is true but at the same time is not an absolute truth as the Opposition has not been opposing for opposing sake up to now…..”
@ DLP (formerly CBC) TV and Radio
Although I understand what you are trying to say, I main concern is if the constituents of St. Peter and Christ Church West are receiving the best representation in parliament by Arthur and Agard respectively.
Both former members of the BLP have shown an obvious hate towards Mottley, and since leaving the ranks of the party to become independent members of parliament, they have found some excuse to vote in favour of the DEMS.
What amazed me with Arthur especially, is that members of the Opposition spoke in unison on the matter of BIDC employees being forced to retire at years and the former NCC workers losing their pension rights, as a result of actions taken by this DLP administration. Arthur chose to attack ONLY Mottley and Bradshaw, while implying that, under his administration, Mottley may have agreed to a similar change in procedure. However, Arthur seem not have taken into consideration that the variables changed over the past 8 years, since he did not have to deal with force retirements, retrenchments and the possibility of workers losing their pension rights during his tenure.
By their actions, Arthur and Agard have demonstrated they are more concerned with the demise of Mottley, rather than offering their constituents honest, unbiased representation. “Revenge politics” deny the electorate the representation they deserve.
In my opinion, when politicians decide to leave their political parties for whatever reason or they are expelled, the seat should be declared vacant and a by-election held.
@ Prodigal
Please “restrain” yourself from answering Uglicia the yard-fowls. They are trying to change the focus of this discussion into a BLP versus DLP scenario.
Notice, they have not made any reference or contribution relative to the CBB report.
Let’s try not to reduce this discussion to their level of rhetorical political diatribe and “yard-fowlism,” as is their main intention.
Excellent Artax……………I was just coming on to make the same point after reading exerpts of Dale Marshall’s contribution in Barbados Today.
Dale made the same points as did Kerry who I believe are still supporters of him and yet the only persons OSA could seek out to cuss were Mia and Santia. He got real problems. You dont like Mia, see her and dont see her. It is time for him to let go of this animosity…..hatred is a terrible emotion.
Leave Maria……..she is not a well person and it is dangerous to her health to be harbouring such hatred………
I agree with you and this has always been my position and to quote you….”when politicians decide to leave their political parties for whatever reason or they are expelled, the seat should be declared vacant and a by-election held”.
OSA is only hanging around to be a thorn in Mia’s side…………he has made his contribution, time to move on!
Thanks, Art……I do not engage the ac’s………..I have long moved on from them!
Did you see Carl Moore’s letter to the Editor………..he wants people like you and I to declare who we are since Mr Anti America has come forth! LOL!
This CBB governor and the minister of finance have been lying to the people for so long on the economy that now they chickens are coming home to roost.
As soon as we seen the CBB putting restrictions on foreign exchange transactions, we know it is serious. Barbadians have began to hold on to US dollars as evident this summer as people are asking around for US to travel.
@ Prodigal
I agree with the first part of your 3:41 PM post but please don’t engage in scare mongering. The annual foreign exchange limit on credit cards has not changed. So nothing has changed for holiday travelers.
Prodigal Son July 20, 2016 at 3:34 PM #
“Did you see Carl Moore’s letter to the Editor………..he wants people like you and I to declare who we are since Mr Anti America has come forth! LOL!”
@ Prodigal
I just read the Carl Moore letter.
Rather than continually writing those “two lined shiite letters” to the Nation, in which he makes snide remarks and WAX nonsensical, (UNCHALLENGED), perhaps Carl Moore should demonstrate some bravery, contribute to BU and prevail against the wrath of the “annomymice.”
Failing to do that, he’s just keeping a whole set of the same noise he advocates against.
Yeah…..Art!
Carl Moore the present day Joan Benjamin wife of Ted of biscuit sales
Old Baje,
Thanks, your point is taken.
One can still get US$492 in cash from the banks but what I was saying that before one could get US dollars on the “side” to top up but not anymore. People are holding on to what they have…………I know that for sure. Sorry, no scare tactics on my part!
I also just read the Carl Moore letter.
I write anonymously because I am free to do so.
Too besides I would willingly identify myself to anyone who needs to know my identity.
For the record I do not need to know anything about any blogger on BU because I respect their right to do as I do.
Prodigal and Artax were scaremongering from 2008.Most the CXC markers from overseas are going to banks and getting 490 US for Barbadian currency as they are about to leave after two weeks marking. That is the maximum amount Barbadians can get when you produce your passport and ticket.
What do you want the government to do? Let the private sector who does not contribute in any big way to earning foreign exchange spend all the hard earned foreign currency on only retail items. It is best to play it safe and put restrictions on it over a certain amount.
I bought something online this morning using my credit card which must be paid in US dollars.
The economy was to crash since 2009 and it still waddling long with bajans buying up any 4×4 they can find. Traffic is horrendous around St. Michael although schools are on vacation because of too many vehicles. How can the people be suffering? Costumes sold out in many bands and you say the people suffering. Man go out nd have some fun and stop all the crying because the government in until 2018.
Mr. Carl Moore you can start a blog if you want to know the names of the bloggers if it is so important to you
@ curious
I have NOT contributing to BU from 2008 and you CANNOT present anything in any of my contributions that suggest I engaged in “scaremongering.”
I will allow the other incoherent shiite in your contribution go over my head.
Perhaps you should focus your attention on the CBB report (well……… that’s if you understand it).
Look yardfool could not careless who reponds to any thing i say. I speak my peace not for engagement but rather to kerp u yardfools and suspected footsoldiers aware of the fact that not everyone buys into the political hat tricks that the blp tries to shove down throats like yesterday long drawn out unisom theatre road show
The blogmaster invites you to join and add value to the discussion.