Category Archives: Barbados Economy

Usefulness of Central Banks

Centrals Banks across the globe are coming under increasing scrutiny given what many consider the implementation of flawed monetary policies. With the possible exception of the US Federal Reserve which has an involved management structure and decision making process, central banks are creatures of elected politicians and are constrained to implement policies to buttress government’s agenda. The ongoing conflict between

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Cost of Living Matter (2) – A Time to Remain Unborn

Some ‘insane’ Barbadians are asking the question again – is the standard of living we have become accustomed tosustainable. Is it sensible for us `a net importer and purchaser of foreign currency to promote and implement policies that guarantee we must BORROW billions in foreign and local dollars to fund the short fall not covered from taxes collected in the

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Financial Crisis in the Forecast – Whither Barbados and SIDs?

The blogmaster is unsure how many Barbadians are going about business today blissfully unaware of the meltdown in global financial markets. Central banks around the world are reluctant to be aggressive with tightening monetary policy for fear it will trigger another financial crisis. The ongoing conflict between Russia and Ukraine will continue to spike inflation given disruption to global supply

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Cost of Living – Crapo Smoke We Pipe

It is no surprise the ineffectual debate about reducing the cost of living has resurfaced. As usual the country is beguiled by the usual talking heads whose commentary is crafted to fulfil political interest and reaffirm traditional economic theories. However you ‘slice and dice’ the challenge facing Barbados to significantly reduce the cost of living, it cannot change the fact

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From Pillar to Post

Many will agree the times we have to live have been and will always be uncertain, especially for small developing states (SIDs). Countries like Barbados- if economists are to be believed- will be vulnerable to economic shocks. To add to the vulnerabilities there is scientific consensus about the threat caused by global warming, predicted to translate to increasing drought, rise

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Shrinkage to Economic Life

Pandemic_Economy

Submitted by Steven Kaszab The Pandemic has thrown the global markets and economic flow into the dumpster. What was, seems to becoming a thing of the past, with corporations amalgamating their manufacturing processes into singular locations. Labor costs, which ruled the day before the pandemic have been set aside allowing logistics, energy and shipping costs to surface as the new

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Too Much Debt Man!

debt

Recently the blogmaster received an email expressing concern about Barbados’s foreign debt stock as the economists refer to it. A look at Central Bank’s Review of Barbados’ Economic Performance (January to December 2021) listed the following. Gross Central Government Debt stood at (BDS $millions): 2016 2017 2018 2019 2020 2021(p) 13,294.1 13,704.1 12,573.8 12,791.2 12,761.2 13,310.7 Gross Central Government Debt

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Paul Kagame Visits Barbados

Paul Kagame

Paul Kagame the transformational leader of Rwanda is set to visit Barbados today after leaving Jamaica. In another blog post Rwanda was featured for its rapid transformation under his leadership following a brutal civil war. His arrival will be telecast – see link: https://youtu.be/PhLZtEhRouA Becoming the SINGAPORE of the Caribbean Posted on October 21, 2020 by David 122 comments The pace at

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Pandemic Levy Misery

Prime Minister Mia Mottley announced in the recent budget that a 15% pandemic contribution levy will be charged to companies deemed resilient that earned net income greater than 5 million dollars in 2020 ad 2021. Companies operating in telecommunications, retail sale of petroleum products by dealers, commercial banks, general and life insurance were targeted. The years 2020 and 2021 as

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B-Day in Barbados

Today Prime Minister Mia Mottley will deliver the Budget for 2022 at 3PM. It will be of interest to pundits for several reasons. It comes against rising oil price caused by the Russia Ukraine conflict which threatens to deplete the foreign reserves government has been boasting, and a cashflow pressured by having reallocate funds to cover pandemic expenses. Of concern

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Fuel Price Mystery Mechanism

Retail Prices for Gasoline and Diesel in Barbados from January 2015 to February 2022

The following was extracted from caribbeansignal.com website. Barbadians should be aware there is a policy by the government to pass on changes in the price of oil to the consuming public at the pump. The impact is that for private and commercial users it will positively and negatively be a cost push effect factor influencing price. Will the government in

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It’s the Economy Stupid!

Based on the recent IMF visit “at the request of the Government of Barbados, an International Monetary Fund (IMF) team led by Bert van Selm conducted a staff visit via videoconferencing from February 7-11, 2022” see IMF Press Release– Barbados received a thumbs up. Here is the summary of the report card. The Prime Minister must have called an early

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Policy Performance and Outlook (Part 2)

barbados economy

A follow through to the Policy Performance and Outlook (Part 1) received/posted by Barbados Underground last week. To be honest topics coming from the political opposition and others critical of government policy on the campaign trial so far have not clearly articulated economic alternatives to give hope to an electorate definitely suffering from all types of fatigue, economic, social and the

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