The current DLP keeps telling Bajans that things are “OK and NOT that bad in Barbados”, however below is the overall summary of the DLP produced 2012-2013 Barbados Estimates. The DLP has given Bajans (5) straight years of a major account deficits due to poor fiscal alignment, budgeting coupled with ZERO fiscal vision for Barbados.
Estimated Current Barbados Revenue – $2,656,139,783
Estimated Total Barbados Expenditure – $3,645,859,147
Estimated Excess of Total Expenditure over Current Revenue $989,719,364
Capital Expenditure at January 31, 2012 increased by 6.2% over capital expenditure for the same period in fiscal year 2010-2011
(excerpt from DLP produced 2012-2013 Barbados Estimates)
Now you tell me BU does the 2012-2013 Barbados Estimates summary above give you the “warm fuzzy” that things are OK in Barbados, keeping the PM in mind and the possibility of giving the DLP another term?
Moody’s published its Disclosures on Credit Ratings of Barbados as at 26 March 2012. Its review has not gotten much airplay on the talk shows which have been concerned with the REDjet matter. Perhaps it says a lot about Barbadians and where our priorities are located at a time when the economy continues to face unprecedented challenges.
A scan of the 5-page report confirms that the Barbados 4.3 billion economy continues to be challenged. Noteworthy is that concern about the fundamentals of the local economy pre-dates the slow down in the global economy. What the global recession has done is to expose a false position that the Barbados was a citadel of strength. Here is a pertinent comment extracted from the Moody’s Investor Service Review:
“The economic strength assessment balances a relatively high GDP per capita (US$ 19,200 in PPP terms) with low growth rates and the small size of the economy (US$ 4.3 Bn.) which relies on a narrow economic base that depends heavily on tourism and international business services. Even during a period of very favorable global conditions from 2004 to 2007, Barbados’ real GDP growth averaged just 3-4%. Furthermore, both of the island’s main industries are expected to continue showing low growth in coming years as they face significant structural challenges. As a result, growth is expected to be only 1% in 2011 and just above 1% in 2012.”