Barbados Central Bank Governor Dr. Kevin Greenidge once again celebrated marginal GDP uptick while the real engines – foreign exchange, productivity, and what the economists call labour force erosion – stalled. Domestic activity has been the saviour because the traded sector was anaemic in the period. Tourism was flat. Manufacturing showed negligible movement. Visitor nights compared with prior year by not increasing substantially. Agriculture remained an inconsequential sector.
Meanwhile, unemployment “improves” only because many Barbadians transitioned to retirement or actively stopped looking for work. A reminder we have an ageing population.
In summary, tourism was our lord and saviour. QED.
Here is the Central Bank text:
Barbados’ economy continued to expand during the first half of 2026, with domestic sectors again leading growth. Real GDP grew by an estimated 1.4 percent, as the non-traded sector expanded by 1.5 percent. Business and other services drove that expansion, with wholesale and retail trade also contributing and construction recording modest growth. The traded sector also expanded by 0.4 percent. Tourism value added, which accounts for about half of traded output, remained close to its level a year earlier. Long-stay arrivals edged higher, but shorter average stays reduced visitor nights. Agriculture added to growth, while manufactu ring output remained broadly unchanged. Domestic activity therefore sustained overall economic growth in a more challenging global environment marked by heightened geopolitical tensions, trade uncertainty, and softer demand in several key tourism source markets.
Labour market indicators remained broadly favourable, while inflation rose from a low base but remained contained. The unemployment rate stood at 6.1 percent at end-March 2026, approximately 0.2 percentage points below its level a year earlier, and unemployment claims fell by 3.7 percent during January to June. The labour force also contracted by 2,700 persons as the number of retirees increased, so the lower unemployment rate reflected both a reduction in the number of unemployed persons and lower labour force participation. The 12-month moving average inflation rate reached 1.4 percent, while point-to-point inflation rose to 2 percent in May 2026, as higher prices for food, education, housing and utilities, and transport pushed the rate up. Government policy measures continued to cushion the domestic pass-through of external cost pressures.
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88 responses to “Growth illusion of Barbados’ Economy: January-June 2026”
John A
@ David
That is my point to Artax the structure we use regardless of what the law says does not serve its purpose. I honestly dont know after all the work the AG does to prepare a report he feels where next year finds him with the same issues.
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John A
Anyhow John 2 I had to go out but not long got back in and will be forwarding to you et all the information you wanted to see.
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John2
“That is my point to Artax the structure we use regardless of what the law says does not serve its purpose. I honestly dont know after all the work the AG does to prepare a report he feels where next year finds him with the same issues.”
Xxxxxxxxxxxxx
And you think it will be different if the audits and reports were done by a private company ?
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John A
First let me thank John2 and Artax for pushing me to state where independent audits are required by law. Seeing that some feel they know it all, let those who were told they know little enlighten them.
I will now quote directly from the NIS Act ( cap 47 ). I will do so in capitals that those that might be short sighted can see.
THE ACT EXPLICITY MANDATES THE BOARD AND SERVICE TO CONSIDER, APPROVE, AND MAINTAIN ANNUAL AUDITED ACCOUNTS AND FINANCIAL STATEMENTS IN ACCORDANCE WITH INTERNATIONALLY RECOGNISED ACCOUNTING STANDARDS.
Good now lets go to the law governing public companies and see what the LAW not John A, says bout dem!
Financial Management And Audit Act ( Cap5/ 2007-11)
We going drop down to “requirements” in the act above. Now for wunna I going put the direct quote in capitals again. You should also read the 2023 amendments as well. It goes on to say.
THE ORGANISATION MUST PREPARE ANNUAL FINANCIAL STATEMENTS FOR EACH FUND AND SUBMIT THEM FOR AN EXTERNAL AUDIT.
The above would cover public companies and such like.
The LAW also under our COMPANIES ACT CAP 308 STATES “ANNUAL INDEPENDENT AUDITS IN BARBADOS ARE REQUIRED UNDER CAP 308 FOR PRIVATE/PUBLIC COMPANIES.
Wunna could also read THE PUBLIC FINANCE MANAGEMENT ACT 2019-1 as this is somewhat linked to CAP 308.
Now I could go on cause I got the 69 pages here, but the above should settle this once and for all. Wunna think because I is a small one door shop keeper in St Farlip that I went school at Brumley, don’t get fool trust me LOL. if you read up on the above CAPS and ACTS, you will also see where all the auditor general is empowered to do is to review the financials submitted to his office and issue a report to government. It is then left to government to decide if they will act on his report, remember a report is the document he submits nothing more. Based on history we know how that has worked in the past. As a result I think we can all agree that this needs reviewing in some form.
SO FINALLY THE LAW STATES ABOVE THAT ALLLLLL ENTITIES OUTLINED ABOVE DOING BUSINESS IN BIM, MUST PRESENT EXTERNALLY AUDITED ANNUAL FINANCIALS TO GOVERNMENT. THE LAW NOT JOHN A.
I Cant mek it no clearer so wunna chew pun dat and have a good night.
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Artax
“The LAW also under our COMPANIES ACT CAP 308 STATES “ANNUAL INDEPENDENT AUDITS IN BARBADOS ARE REQUIRED UNDER CAP 308 FOR PRIVATE/PUBLIC COMPANIES.”
John A
Hold on!!
Don’t gloat, ‘pat yuhself on pun yuh back and celebrate, yet.’ 🥳🎈
‘I ‘had a mind you did gine guh down dah line.’
To bring some clarity to the discussion, we must FIRST IDENTIFY the DIFFERENCES between GOVERNMENT OWNED companies, PRIVATE and PUBLIC companies.
Barbados National Energy Co. Ltd. and Barbados Port Inc. are examples of registered government owned companies, or commercial state-owned enterprises.
A PRIVATE company is a business whose shares are not traded on public stock exchanges and are owned privately by individuals, families, private investors or entities.
A PUBLIC company is a corporation whose ownership shares are sold and traded freely to the general public through the stock exchange, (any business that is traded and regulated through the Barbados Stock Exchange (BSE), for example).
According to Section 308 (g) of the Companies Act Cap:
“PUBLIC COMPANY” means a company any of whose issued shares or debentures are or were part of a distribution to the public within the meaning of section 443, or are intended for distribution to the public.
Perhaps you may want to provide BU with examples of government owned companies that are listed on the Stock Exchange and issue shares or debentures. 😀
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NorthernObserver
Artax
Thanks. The staffing issue is not new. As you may know I have commented a few times on the failure to install a new Auditor General. Min Straughn, I believe in December on Brass tacks, ref “somebody was Acting”, though the Budget office website doesn’t reference this.
I have zero proof. But in the same way I suggested the NIS would roll into the NISSS without issuing any financial material, I believe, the continued systematic neutering of any reporting, and accountability products, suggests the aim is to close the Aud Gen office, or at least, not have it issue an Annual Report. Said report is a pain in the elected’s ass. It would begin by delaying a new, vs acting Aud Gen indefinitely. This is what has been done with Reporting in general. If you don’t issue for long enough people even forget a Report is due, a la the NIS, QEH, TB etc
Any comment on
In Nov 2025 three Bills were passed in Parliament, entitled Final Appropriation Bill. Each was for separate prior year, and back dated thusly. Here, as I understand it, is where the Consolidated Fund is authorized to transfer funds.
Why would final Bills for 2023 and 2024, I believe March is the GoB year end (?), take 2.5 years and 1.5yrs to end up for Final Approval?
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Artax
“THE ACT EXPLICITY MANDATES THE BOARD AND SERVICE TO CONSIDER, APPROVE, AND MAINTAIN ANNUAL AUDITED ACCOUNTS AND FINANCIAL STATEMENTS IN ACCORDANCE WITH INTERNATIONALLY RECOGNISED ACCOUNTING STANDARDS.”
@ John A
I’ve read the NIS Act (cap 47) and DID NOT SEE anything even comes close to your above comment.
As it relates to your other comment, re “THE ORGANISATION MUST PREPARE ANNUAL FINANCIAL STATEMENTS FOR EACH FUND AND SUBMIT THEM FOR AN EXTERNAL AUDIT.”
I read Financial Management & Audit Act (Cap5/ 2007-11) and DID NOT come across that either…… or a 2023 amendment.
There are actually four (4) references made to ‘financial statements’ therein. At 3 (d), 4, 22(1) and 36 (1).
Perhaps you should post the links for our perusal.
Or is this just another fabrication of proof?
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John2
John A
u can find laws that u think support what u pushing.
Now go find the description of the AG office then answer the following questions:
1. Is the AG office an independent entity ( by law) or not ?
2. Is the AG office internal or external to government entities like BWA, QEH, TB etc
The risk is not that the current model will fail. It is that it will persist.
THERE IS SOMETHING reassuring about the Central Bank’s latest review of the Barbadian economy. By conventional metrics, the economy is stable.
But one important question – one that sits beneath the surface of the Central Bank Governor Dr The Most Honourable Kevin Greenidge’s review –is what that stability is being used for.
The economy in the first half of 2026 did not behave in the same way as it did a year earlier. In 2025, growth was driven from the outside-in, led by a strong tourism rebound and supported by the tradable sectors that generate foreign exchange. In 2026, that dynamic reversed.
Tourism weakened in the second quarter and growth was sustained instead by domestic services and other non-tradable activity.
The economy expanded, but differently; not through external momentum, but through internal compensation.
Traditionally, we expect the opposite: growth driven by the tradable sectors, while nontradables follow.
External shocks
Now, the policy framework is working exactly as intended.
Fiscal surpluses preserve credibility.
Strong reserves provide a buffer against external shocks. The emerging strategy of frontloading financing – accessing capital markets early when conditions are favourable – would add another layer of protection. Each of these tools serves the same purpose: to reduce risk, smooth volatility and extend the horizon over which decisions can be made.
But risk management creates space and buys time. It does not transform an economy.
And the critical question is what is being done with that time.
To answer that, we have to look beyond the headlines and examine the composition of growth.
In the short term, domestically-propelled growth is stabilising.
It prevents a sharper slowdown. It shows that there is some internal dynamism in the economy. But it also reveals the existential constraint for a small open economy. Nontradable sectors circulate income within the economy, but they do not expand its foreign exchange earning capacity.
At the same time, net foreign direct investment weakened, reflecting both fewer inflows and the natural cycle of profit repatriation. This matters because FDI is one of the main ways the economy expands its foreign exchange earning capacity. When these inflows slow, the economy does not stop growing, it changes how it grows. Domestic activity takes over, but without the external reinforcement that makes that growth sustainable. In that sense, the decline in foreign direct investment does not simply reflect global uncertainty, as the review asserted, but the limits of an investment model that is episodic, project-based and concentrated in a sector that reinforces our structural dependence.
Investment outflows
This reversal between the tradable and nontradable sectors cannot persist indefinitely. In a small open economy, the external constraint always reasserts itself.
Growth that is not anchored in foreign exchange earnings eventually runs into balance of payments pressures, whether through imports, investment outflows or debt servicing requirements.
Which brings us back to the question of time.
If the policy framework is buying time and the domestic economy is using that time to sustain activity, what is happening at the structural level? What is being done to expand the tradable sectors, to diversify, to reduce vulnerability to external shocks? The review documents performance and explains outcomes but stops short of articulating a path from stability to transformation.
Another quieter adjustment is also taking place – one that operates at the level of households. The Governor was explicit that Government cannot continue to shield consumers indefinitely from rising prices.
This introduces a different kind of shift.
It is not only that the economy is adjusting.
It is that the burden of that adjustment is gradually being redistributed. Not through dramatic policy announcements, but through the slow withdrawal of support, the restructuring of tax relief and the quiet passing through of costs to households.
Stability
It is a redistribution that is technocratic rather than political, embedded in policy design rather than public debate. And it reinforces the central dilemma. Stability is being maintained. But the underlying structure – the dependence on one driver, the limited expansion of tradable sectors, the exposure to global shocks – remains largely unchanged. The risk is not that the current model will fail. It is that it will persist. That the economy will continue to grow modestly, supported at times by domestic activity, buffered by strong reserves and managed with increasing sophistication – while the deeper question of transformation remains unanswered.
Which brings us back to the question that sits at the centre of this moment: what is Barbados doing with the time it has bought? Until that question is answered – not in rhetoric, but in measurable shifts in how the economy produces, exports and grows – the story will remain the same.
Professor Troy Lorde is an economist and Dean of the Faculty of Social Sciences at the University of the West Indies, Cave Hill Campus. Email troy. lorde@cavehill.uwi.edu
INSTITUTIONS AND HOUSEHOLDS are borrowing more money from financial institutions.
They secured about $264 million in loans during the six-month period ended June 30, the Central Bank of Barbados shared in its economic review for the January to June period.
Governor Dr The Most Honourable Kevin Greenidge reported on this during his second quarter press conference last Thursday at the Courtney Blackman Grande Salle.
He also mentioned an increase in the deposits of domestic and foreign currencies.
“Credit to the non-financial private sector expanded modestly during the first half of 2026, with growth spread across most major sectors. Total credit increased by 2.8 per cent, or $263.6 million,” Greenidge said.
“Credit recorded under the ‘other’ category rose by $104.4 million, including $91.1 million in additional lending to the utilities sector.
“Real estate and other professional services added $93 million, household borrowing increased by $51.6 million, and construction credit rose by $17.5 million. Credit to the distribution sector declined.”
Greenidge also reported a continued decline in non-performing loans as borrowers served their loans better.
Loan quality improved
“Loan quality continued to improve during the first six months of 2026. The stock of non-performing loans declined by 1.2 per cent from its end-2025 level, as households and firms in the construction and hotels and restaurants sectors improved their repayment performance,” he said.
“The commercial bank nonperforming loan ratio fell to 3.4 per cent and the finance company ratio to 6.4 per cent.”
The Governor also said that as Barbadians borrowed more money, they did not neglect making additional deposits at financial institutions.
At the end of June, total deposits were $16.7 billion, comprising $15.1 billion in domestic deposits and $1.6 billion in foreign currency depotis. The overall total was up from $16.3 billion deposited at the end of June last year.
“Deposits increased in both currencies during the first half, with domestic currency balances accounting for most of the dollar increase and foreign currency balances growing faster in percentage terms,” he said.
“Total deposits increased by 2.7 per cent, below the three per cent growth recorded in the corresponding period of 2025. Foreign currency deposits rose by 10.3 per cent, with construction, real estate, hospitality, and distribution firms recording the largest increases.”
Greenidge explained that domestic currency deposits increased by two per cent as households and firms in utilities, manufacturing and the real estate sector raised their balances.
“Construction firms increased their foreign currency balances while reducing their domestic currency deposits. Lower balances held by public financial and non-financial corporations moderated the overall increase,” he said.
“Liquidity ratios declined during the first half but remained ample. The liquid asset ratio of commercial banks decreased to 27.7 per cent in June from 28.9 per cent at the end of 2025, while the finance company ratio declined to 11.7 per cent from 13.5 per cent.”
The Central Bank’s economic review said that both ratios nonetheless remained comfortably above required levels, while excess domestic cash ratios also fell to 16.8 per cent for commercial banks and 6.3 per cent for finance companies.
Greenidge also said capital buffers “remained strong at end-June 2026, while profitability moderated during the 12 months ended June 2026”.
“Capital adequacy ratios stood at 18.1 per cent for commercial banks and 19.4 per cent for finance companies, comfortably above the eight per cent regulatory minimum. Both commercial banks and finance companies recorded lower profits, partly reflecting a decline in net interest income. Return on average assets stood at 0.8 per cent for commercial banks and one per cent for finance companies.”
BARBADOS’ FUEL IMPORT BILL increased by $127.1 million as international oil prices surged in the first half of the year.
As Iran closed the Strait of Hormuz during its Middle East war with the United States and Israel, Barbados spent $540.7 million on fuel imports between January and June, up from $413.6 million in the same six months last year.
This is according to the Central Bank of Barbados’ economic review for the January to June period.
Governor Dr The Most Honourable Kevin Greenidge said last Thursday that the increase in imported fuel was the main reason why imports increased by the end of June.
“Higher imports widened the merchandise trade deficit, although stronger exports partly offset the increase,” he said.
“Imports of goods rose by $132.4 million to $2.3 billion, while exports increased by $66.2 million to $1.3 billion, widening the trade deficit by $66.3 million, or 7.2 per cent, to $982.9 million.
‘Buffers running low’
“Fuel accounted for almost the entire rise in imports, increasing by $127.1 million to $540.7 million, with chemicals and consumer goods contributing the remainder. Stronger re-exports of fuels, food and beverages, together with the recovery in exports of domestically-produced rum, moderated the deterioration.”
The latest information from the Central Bank comes as International Monetary Fund (IMF) experts cautioned that while the global oil market absorbed the war shock, “buffers are running low”.
This point was made in an analysis by Jean-Marc Natal, head of the commodities unit at the IMF, and Azim Sadikov, mission chief for Saudi Arabia and division chief for the Gulf Cooperation Council countries.
“The largest disruption to the global oil market in decades should have sent prices soaring. But after spiking at the start of the war in the Middle East, crude prices soon settled in a range of $90 to $100 per barrel, much lower than many had feared,” they said.
“Why didn’t prices climb higher? The answer is that a combination of factors helped cushion the initial blow. But much of that room has now been used up.”
Natal and Sadikov observed that “before the most recent escalation of tensions, the US-Iran framework agreement to reopen the strait sent prices sharply lower, in large part because stranded oil on tankers in the Gulf could rapidly return to the market”.
“Still, much remains uncertain – including when freedom of navigation through the world’s most critical oil chokepoint will be effectively restored, and how quickly shipping, insurance, and operator confidence will follow,” they said.
“Industry estimates suggest it will take two to three months before a significant share of oil flows can resume following a full reopening of the waterway. A longerterm concern is that prolonged production halts could cause permanent output losses, especially where financing to restart wells is scarce.
“Whenever supply begins to recover, the oil deficit will close only gradually, drawing inventories closer to operational minimums – the level below which the physical system itself begins to bind.”
The two experts offered the following lessons for policymakers:
• Inventories matter. Rebuilding them is essential to prepare for future shocks.
• A single chokepoint leaves the global economy heavily exposed. Diversifying energy sources – including renewables – is as important as diversifying routes.
• Support to consumers should be targeted to the most vulnerable and temporary to protect government budgets and the price signals that encourage energy saving and efficiency.
Source: Nation
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Artax
@ NorthernObserver
Based on what I’ve read, three (3) Final Appropriation Legislation were passed in 2025.
Final Appropriation (2024-2025) Bill, 2025: Presented and passed on September 1, 2025
Final Appropriation (2023-2024) Bill, 2025: Passed later in the legislative cycle on October 30, 2025
Final Appropriation (2022-2023) Bill, 2025: Passed concurrently on October 30, 2025
The explanation given was the legislative purpose served as financial adjustments.
“These final appropriation acts legally account for and finalise the allocation of sums from the Consolidated Fund for prior public services of Barbados once actual audited expenditures for the respective fiscal years are completed.”
The FA (2024-2025) Bill, for example, requested a Supplementary grant to cover satisfy resolutions that were passed during the Financial Year that ended March 31, 2025 granting additional sums totaling $730,938,983, out of the Consolidated Fund.
According to the schedules, the following amounts were appropriated to the Prime Minister’s Office:
I don’t have any other information on this issue, as I don’t actually listen to the debates any longer.
We’re operating in an environment where you have 30 guys in the Lower House ‘singing the same tune,’ while ‘dissenting voices’ are only heard in the Upper Chamber.
Additionally, after three (3) consecutive ’30 loves,’ one would’ve believed that, in the interest of transparency and accountability, legislation would either have been formulated or amended to facilitate the convention of a Public Accounts Committee.
🤔🤔🤔
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Pachamama
Bushie
It might have been long an imprecision to discount the industrial production of the “merriment” Industries.
But to wonder what all of this means in real terms. Is it solely supported by central planning?
Artax
What you have penned concurs with what I read. In total, “Final Appropriations” of $1.6B for 3 consecutive annual periods were passed.
It seems rather odd, that a supplementary grant of $540M (for the 2022-2023 period) was enacted, and backdated, such that it was deemed appropriated on April 1, 2022; when the Bill passed in the House on Nov18/25, Senate Nov19/25,(Barbados Parliament website) though I’ve seen the Oct 30 date in other places.
While not illegal, is this back dating practice common? And where did the public bodies find, in this annual case, $540M to pay its bills? (Which were from Apr 2022-march 2023, now 2.5yrs past the official year end)
Your quoted comment, “once actual audited expenditures for the respective fiscal years are completed”….might the delays be due to delays in the audit?
You must realise by now, “interest of transparency and accountability” is spoken frequently, but in Bajan parlance, endorsed infrequently. PAC’s went ‘out of style’ in the D administrations, and are basically zero now with no opposition. Thorne tried to stir that PAC pot, and the B’s introduced stumbling blocks which put the lid back on the PAC pot. Nuh PACs bout hey.
Watch them neuter the Budget Office. That way returning to former functions and reporting takes years.
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John A
@ Northern
Listen the estimates was only a rough estimate based on what we “feel” we would need, so we had to get a little top up dats all. It don’t call for all this audit talk and thing, just open de wallet and ” give them a little ease.” You see in the republic what was laws before is now more like “suggestions.”
Remind me of a fellow I knew that when the bank called and told him he was overdrawn he said that is impossible I still got cheques left.
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Artax
@ NO
To be fair, we cannot reasonably compare government estimates with financial projections for a company, for example, because of policy changes or unforeseen circumstances.
Take the Social Empowerment Agency (SEA), for example.
That department may have estimated house repairs based on outstanding and estimated applications.
However, during the financial year, some people may have unfortunately experience structural damage to their homes, roofs blown off or complete destruction as a result of an intense localized ‘freak storm,’ which would cause an increase in applications for house repairs and welfare services, and a corresponding increase in disbursements.
SEA, through its ministry, would have to apply for a supplemental vote to cover the additional spending.
Please note, I’m not implying ALL applications for supplemental financing are justified, because we all know how politics work.
Your last point is understood but there have been enough requests for supplementary appropriations to support the thinking that the consolidated fund is a public trough and taken for granted. Too much squandermania- rom steel houses, to hardwood fiasco to Hope deliverance.
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Bush Tea
LOL @ David
You mean MULTIPLE ‘Hardwood House fiascos’.
The Dees had theirs – still unresolved as far as Bushie is aware…
…and then the Bees came up with their own ‘Hardwood’ scheme under Sutherland. No doubt that died when he was transferred – just as the DLP’s hardwood died when Mascoll transferred.
Bajans are so naive that they did not even bother to use a new name for the scam…
But who else can wuk up like a Bajan…?
What a people!!
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Hants
True dat.
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John A
@Artax
Sorry for the delay in getting back to you with where to find the exact document that speaks directly to the Audit requirement for state entities but yesterday was libations and food day.
PUBLIC FINANCE MANAGEMENT ACT 2019-1 117
FIFTH SCHEDULE (SECTION 7)
contents for Annual Reports for state owned enterprises.
You will find there listed in items (a) to (m) what is required.
Along with other things the below are listed ( f ) Audited information (j) Annual Financial Statements (k) An audit report ( i ) unaudited information
if you go on to section 116 under the same PFM ACT 2019-1 116 you will see where the act in clause (c ) and ( d) go on in detail to state what is needed with the auditor report. As you know Cap 308 speaks to what an audit is as it pertains to Independence. The requirements for the NISS are basically the same as one would expect.
If you cant find these neither I cant help you cause its all there in black and white.
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NorthernObserver
Artax
While you provide a very plausible reason; since you earlier mentioned those monies to the PMO, which was the largest beneficiary in each year (I think…memory), there were numerous other departmental beneficiaries? Shall I say, it was widely distributed. So the “lotta dem” have unprojectable expenses, which may arise. All good. Yet it takes 2.5yrs to come to the surface, for “all ah dem”?
I put it to you, for what I will broadly describe as ‘political reasons’ these expenses were concealed. Not sure it had anything to do with IMF, but they appeared shortly after that last IMF program ended. May just be coincidence.
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Redguard
Professor Lorde identifies the elephant in the room, economic transformation, but he does not delve into what is possible.
Bermuda, Cayman Islands have financial services on lock
Oil is not going to be found
We are stuck in tourism purgatory, more arrivals requires more concessions and more extraction, the net effect is minimal and some may argue negative
Marijuana is a non-starter, despite the BMCLA fantastical views
The Blue economy was an idealist dream and due to the dearly departed Dr. Cox it is pretty much over now.
Where does that leave us? With social science graduates being the primary output from our University and BCC and SJPI seen as after thoughts, STEM driven transformation is impossible, so our only route is institutional and governance transformation. But judging from the responses, the 90 – 0 which presented the ideal situation for such a transformation has been used for other pursuits.
We can boast that the governor of the Central Bank has a social media page and even has time to play different characters in the scenarios. Now that is Bajan innovation.
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Artax
“As you know Cap 308 speaks to what an audit is as it pertains to Independence.”
@ John A
The Companies Act, Cap 308, DOES NOT apply to government ministries, departments or certain state-owned agencies.
I SUSPECT you’re of the belief that Cap 308’s reference to PUBLIC means an entity owned by the government of Barbados……
……rather than a company that is regulated by the BSE, and permitted by law, to offer to its shares or securities to the general public.
Government finances are REGULATED primarily by the Barbados Constitution, Public Finance Management Act, Financial Management and Audit Act, and the Ministry of Finance, Economic Affairs & Investment.
Government’s accounting system ADHERES to the guidelines as outlined in the International Public Sector Accounting Standards (IPSAS).
The Treasury Department is headed by the Accountant General whose responsibilities are outlined by the Financial Administration and Audit Act, Chapter 5 of the Laws of Barbados.
The Barbados Audit Office is an INDEPENDENT public constitutional institution, established under Section 113(2) of the Constitution.
The Auditor General is the EXTERNAL auditor for the government and audits the financial accounts, checks public spending, and reports directly to Parliament.
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Artax
“Sorry for the delay in getting back to you with where to find the exact document that speaks directly to the Audit requirement for state entities……”
@ John A
Your ORIGINAL ARGUMENT was the Financial Management And Audit Act ( Cap5/ 2007-11) states, “The organisation must prepare annual financial statements for each fund and submit them for an EXTERNAL AUDIT.” [August 2, 2026, at 9:28 pm]
Below is the information you referred to, was taken from page 117 of the Public Finance Management Act, 2019-1.
FIFTH SCHEDULE (Section 7)
Contents for Annual Report of the State-Owned Enterprise
The Annual Report of Performance for the State-Owned Enterprise, prepared pursuant to section 7, shall contain the following:
(a) commentary on the department’s overall performance for the year, including performance measured by the key performance indicators and a comparison of actual achievements with those forecast in the annual plan;
(b) a summary of the level of activity undertaken during the year;
(c) details of significant developments which are likely to affect the entity’s performance;
in subsequent years, in particular any initiatives to improve quality, value for money,
customer satisfaction and income generation;
(d) organisational coverage of the annual report;
(e) the period covered;
(f) audited information;
(g) a Statement of performance;
(h) End-of-year performance information on appropriations;
(i) Exemptions from the statement of performance;
(j) Annual financial statements;
(k) an Audit report;
(l) unaudited information;
(m) asset performance indicators;
(n) a report on health and safety.
Please INDICATE WHERE in the above list any reference is made to an “EXTERNAL audit?”
As I’ve mentioned in a previous contribution, you are attempting to engage in discussing a topic of which you do not have the requisite knowledge or experience.
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Artax
“……for what I will broadly describe as ‘political reasons’ these expenses were concealed.”
NO
That’s one of the reasons why made a specific reference to the amounts appropriated to the PMO.
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NorthernObserver
Two notes
@1.34pm
Much of this theoretical, as most don’t report.
.and
as a reminder to all, Clearwater Bay Limited was a company, not classified under State Owned Enterprise, though the state, I believe, was the only shareholder. It operated under the Companies Act.
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John A
Artax is is you that are trying to mislead persons who can read clause a to n for themselves.
I will say again entities like the NISSS CAN NOT be allowed to continue without filing independentt audited financials.
I am glad though that although you could find nothing I posted yesterday on record, you did manage to find it today. Anyhow I have no further comment on this issue and I invite all to read the summary of clauses in your 1.34 pm post and decide for THEMSELVES how they interpret it. Of course I would expect you to say that they would not be capable of doing such, but let’s give them a chance all the same.
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NorthernObserver
JohnA
Time to quit. None of what Artax has penned is incorrect. The NISSS is subject to annual reporting, and the financials are to be audited by the Aud Gen office. The only external is the tri-annual Actuarial Report.
It is moot, because the NIS or the follow up NISSS do not report.
This issue lies with private companies. Ask most and they’ll say, employees are their most valuable asset. Yet, here they are collecting NIS contributions from employees, then adding their own share and remitting. Then? Not one shite.
They all have a responsibility to their employees, to ensure these monies are being well managed.
These employers are well within their rights today, to withhold NIS contribution via escrow. The monies are being collected, and are available, ONCE the NIS follows the laws, and performs as legislated. It is failure to perform escrow. Only the most political of persons could object to this.
If you wish results, you must squeeze. And it isn’t as though you are seeking something which isn’t legally required, or in the best interest of your employees, Barbadian citizens for the most part.
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Artax
@ John A
My friend, it is YOU who’s attempting to “MISLEAD people.” 😂
Based on your comments it’s ‘pellucidly clear’ you DO NOT know anything about government’s accounting system. 🤐
Rather than admit to that fact, you came to this forum to post shiite.
YOU posted the following statements, which YOU CLAIMED were TAKEN from the NIS Act (cap 47) and Financial Management & Audit Act (Cap5/ 2007-11):
(1): “THE ACT EXPLICITY MANDATES THE BOARD AND SERVICE TO CONSIDER, APPROVE, AND MAINTAIN ANNUAL AUDITED ACCOUNTS AND FINANCIAL STATEMENTS IN ACCORDANCE WITH INTERNATIONALLY RECOGNISED ACCOUNTING STANDARDS.”
(2): “THE ORGANISATION MUST PREPARE ANNUAL FINANCIAL STATEMENTS FOR EACH FUND AND SUBMIT THEM FOR AN EXTERNAL AUDIT.”
In my response on August 3, 2026 at 12:49 am, I posted that I read the BOTH the NIS Act (cap 47) and Financial Management & Audit Act (Cap5/ 2007-11) and DID NOT come across “ANYTHING that even comes CLOSE to your above comments”…… OR the 2023 amendment you suggested we should READ.
Therefore, I ASKED you to provide a link for our perusal.
In your August 4, 2026 at 11:13 am contribution, you MADE SPECIFIC REFERENCES to Schedule 7, items (a) to (m) in the Public Finance Management Act, 2019-1, 117, Fifth Schedule (Section 7), as EVIDENCE to SUBSTANTIATE your claims……
……and ‘said,’ “You will find there listed in items (a) to (m) what is required,”……
…… which I FOUND based on YOUR ‘directions,’ ‘copied & pasted’ Schedule 7 to BU, and SIMPLY ASKED you WHERE in the list are there ANY SPECIFIC REFERENCES to an EXTERNAL AUDIT.
Rather than answer my question, you decided to respond with you’re “glad though that although you could find nothing I posted yesterday on record, you did manage to find it today,”……
…… which is a BLATANT LIE, because ‘up to now’ I’ve not found anything YOU claimed was in the Act.
However, I AGREE with you and “invite all to read the summary of clauses in (my) 1.34 pm post, (as well), and decide for THEMSELVES” if YOUR comments I listed above as (1) and (2), are INCLUDED therein.
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Artax
“Clearwater Bay Limited was a company, not classified under State Owned Enterprise, though the state, I believe, was the only shareholder. It operated under the Companies Act.”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
If you had read my contribution thoroughly, you would’ve realised I mentioned:
“Barbados National Energy Co. Ltd. and Barbados Port Inc. are examples of registered government owned companies, or commercial state-owned enterprises.” [August 3, 2026 at 12:16 am]
“The Companies Act, Cap 308, DOES NOT apply to government ministries, departments or CERTAIN state-owned agencies.” [August 4, 2026 at 1:09 pm]
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NorthernObserver
I read your contribution. I didn’t object.
You didn’t mention CBL, I did.
BARBADOS ENDED the first half of 2026 with $3.1 billion in international reserves. That represents almost 26 weeks of import cover, comfortably exceeding the international benchmark. The current-account deficit also narrowed to $189.4 million.
These are reassuring developments. They show that Barbados has retained the capacity to pay for imports, meet its external obligations and defend the exchange-rate peg. But the composition of improvement deserves closer attention.
The current-account deficit did not narrow because Barbados sold substantially more goods and services to the world. According to the Central Bank, the merchandise trade deficit widened and the services surplus became smaller. The improvement came primarily from stronger net current transfers and a narrower income deficit. In plain language, Barbados received external inflows that offset weaknesses elsewhere in the account.
Those inflows are valuable. But they are different from foreign exchange earned through consistently stronger tourism, exports or internationally competitive services.
The Bank has warned that some inflows may not recur at the same pace. Its updated economic outlook explains that the first-half increase in current transfers included corporate tax receipts associated with the global minimum tax regime.
For Barbados, the new arrangements have created additional corporate tax receipts, some of which entered the country as foreignexchange transfers from companies abroad. This represents an important opportunity. Barbados has spent decades developing its international business sector, legal framework and reputation as a jurisdiction in which global companies can operate.
But international tax rules can change. Corporate profits can fluctuate. The timing of payments can vary from one period to another. Companies can reorganise their operations in response to new regulations.
The Bank’s warning is therefore prudent. Barbados should not assume that an unusually strong inflow in one period will automatically become a stable feature of every future period.
This is especially important because the more traditional parts of the external account did not perform as strongly. Tourism value-added remained close to its level one year earlier. Long-stay arrivals edged upward, but visitors stayed fewer nights. The United States market was affected by higher airfares and reduced seat capacity.
This exposes a weakness often hidden by the headline arrival numbers. A visitor who comes to Barbados for seven nights does not contribute the same as one who stays for 14. Shorter visits increase the number of arrivals without producing an equivalent increase in foreignexchange earnings. Greater attention to what visitors spend, how long they remain and how much of their expenditure stays within Barbados should be prioritised. The merchandise account presents the other side of the problem. The Bank estimates that essential goods, including fuel, food, machinery, pharmaceuticals and construction materials, account for roughly 48 per cent of total imports. This dependence is expensive even when the global economy is stable. It becomes more serious when war increases energy and freight costs, shipping routes are disrupted or the prices of essential commodities rise.
Strong reserves provide protection against these shocks. But reserves do not remove the underlying dependence. As I have stressed, they only buy time.
The policy question is what Barbados does with that time. One response should be to treat potentially volatile corporate tax receipts cautiously. They should not automatically finance permanent expenditure that becomes difficult to reduce if receipts decline.
Where inflows exceed expectations, part of the benefit should strengthen reserves, reduce debt or finance investments that lower future external vulnerability. Renewable energy is an obvious example. Investments in water security, food production, storage and efficient transportation can produce similar benefits.
The objective is not complete self-sufficiency. Barbados will always import many of the goods required by a small modern economy. The realistic goal is to reduce dependence where local production is economically sensible and strategically important.
Barbados must also earn foreign exchange from a wider range of activities. Tourism will remain central for the foreseeable future, but the country should focus more intensely on value rather than arrivals. Longer stays and stronger intersectoral linkages would allow more visitor expenditure to remain in the economy.
International business, professional services, education, digital services, culture, health-related services and specialised manufacturing must also contribute more. This is what the Bank means when it calls for stronger traded-sector performance, higher productivity and improved export competitiveness.
The reserves are real. The improved external position is real. Barbados is in a far stronger position than it was during the foreign-exchange difficulties preceding the 2018 economic programme. But confidence should not become complacency.
A cushion protects us when we fall. It does not remove what causes us to fall.
Professor Troy Lorde is an economist and Dean of the Faculty of Social Sciences at the University of the West Indies, Cave Hill Campus. Email troy.lorde@cavehill.uwi.edu
THE INTERNATIONAL MONETARY Fund Article (IMF) is doubtful that Barbados can sustain the economic growth now being fuelled by strong tourism demand and construction activity largely connected to that industry.
IMF experts believe that “when the current boom subsides, demographic headwinds will act as a meaningful brake on economic growth”, mentioning the need to upgrade skills while responding to challenges posed by the country’s ageing and declining population.
They examined the issue in a Growth Prospects analysis in the IMF Article IV Consultation Report on Barbados, which was published in June when the US$260 precationary Stand-by Arrangement was approved.
In the recent half-year economic review, Central Bank Governor Dr. The Most Honourable Kevin Greenidge reported that tourism, construction, and transportation each fell short of projection, contributing to a slow-down in economic growth.
Real growth domestic product grew by 1.4 per cent between January and June, which was below expections.
Before the IMF Article IV Consultation report warned that “while near-term growth prospects are favourable, there are important headwinds that limit long-term growth”. “Supported by strong tourism-related construction activity and sound macroeconomic policies, Barbados is poised to continue to grow solidly in the near term, provided that the island can accommodate an additional inflow of tourists without encountering supply chain bottlenecks,” the IMF staff said.
“However, heightened construction activity and increasing tourist arrivals are unlikely to continue indefinitely. With economic activity concentrated in the tourism sector, the country’s growth prospects are acutely vulnerable to an economic slowdown in tourismsource countries.
In this context, Barbados must continue implementing long-term structural reforms. While financial, trade, and labour market reforms are likely to be most impactful, the sequencing and timing of these reforms are likely to determine their significance to the island’s growth prospects.”
They also said that tourismindustry investment “can boost off-peak tourism demand, in areas such as Meetings, Incentives, Conferences, and Exhibitions and cultural tourism, reducing seasonal fluctuations and improving resilience”.
Recommendations
“Importantly, human capital development and productivity remain important factors determining the island’s productive capacity, particularly in the face of the domestic population decline,” the report stated.
“On this front, Barbados has sought to address the challenges of ageing and declining population through its 2024 Population Policy, introducing recommendations for managed migration and interventions to spur fertility rates and the tabling of the Immigration Bill, 2025 and the Barbados Citizenship Bill, 2025.
“The National Training Initiative together with the recent launch of the Barbados Job Registry are intended to strengthen the labour market by improving alignment between skills and employers’ needs.”
The IMF report included Government’s view on Barbados’ growth prospects.
The authorities “expect the expansion of tourism capacity and Barbados Economic Recovery and Transformation Programme (BERT 2026) reforms to support higher medium-term growth”.
“Sustained construction activity, continued expansion of airlift, and BERT 2026 structural reforms should support medium-term growth. Planned hotel developments are expected to increase room capacity by about 25 per cent by 2030, complemented by expanded airlift from the United States, Canada, and the United Kingdom, and new routes from Africa and Asia,” Government said.
Growth potential
“Upgrades to airport and maritime port infrastructure also aim to alleviate capacity constraints. Productivityenhancing reforms – including the work of Business Barbados, operationalisation of the Single Electronic Window, and establishment of the Competitiveness and Productivity Commission – will strengthen the business environment.
“In this context, they expect medium-term growth to rise toward three per cent under the conservative program framework, with the full implementation BERT 2026 raising further toward the medium to Government added.
However, the that “while ongoing are expected to the near term, to face structural limit potential implementation of raising growth potential toward five per cent over to longer term,” added. the IMF staff view was ongoing capital projects to support growth in term, Barbados continues structural challenges that potential output”. External shocks shocks “Barbados has enjoyed periods stronger growth with construction tourism demand. environment, with private hotel projects public investment, economic activity they said.
“However, Barbados’ vulnerability to and natural disasters, the demographic ageing population continue to weigh growth prospects.”
They stressed medium-to-long reforms will be potential growth, key reform areas key infrastructure improving the environment, and gap.
Source: Nation
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