Former Governor of Central Bank DeLisle Worrell’s Second Opinion on Economy
Text of Dr. Delisle Worrell – former Governor of the Central Bank of Barbados – October 2018 newsletter:
There is a Second Opinion on the Health of the Barbadian Economy
In November last year I published a diagnosis and prescription for the economy in The Barbados Economy: The Road to Prosperity, which you may find on my website, DeLisleWorrell.com. Barbados has a competitive tourist industry, a well regarded international business and financial services sector, and quality rums and other exports that are coveted in the Caribbean, North America, Europe and elsewhere. On the basis of the foreign exchange they earn, our economy should be growing by 3 percent per year.
Instead, our economy did not grow at all last year, and it is expected to contract this year.
The main reason is that $2 billion of investments have been held up in official processes of one kind or another. To make matters worse, taxes failed to cover Government expenditures by a wide margin. Government was obliged to borrow to make up the difference, including from the Central Bank. As a result, the foreign reserves fell to low levels, deterring potential investors.
Check Caribbeansignal.com for full text of former Governor of the Central Bank