Central Bank of Barbados

Review of Barbados’ Economic Performance for the First Nine Months of 2015

Dr. DeLisle Worrell, Governor of the Central Bank

Dr. DeLisle Worrell, Governor of the Central Bank

Barbados’ tourism has been encouraging so far in 2015, with arrivals increasing by 14.5 percent to end -September. However, construction activity fell short of expectations, and the spillover effects to the retail and domestic services sectors were muted, resulting in growth of 0.3 percent […]for the year so far. Average unemployment over the first half of the year was 12 percent, and inflation, which is mainly imported, fell to 0.8 percent in the twelve months ending July…

 

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51 Comments on “Review of Barbados’ Economic Performance for the First Nine Months of 2015”

  1. Violet C Beckles October 27, 2015 at 8:36 PM #

    Numbers are worse than that , Do any one remember the man leaving the island and the MOF begged to up grade the numbers.Now the numbers are lower than even the white-man was saying ,

    Like

  2. David October 28, 2015 at 5:01 AM #

    It seems Barbadians have become numb to the important issues. Imagine public debt has risen from 28% in 2008 to 68% today and we show little concern. We have borrowed a way into a hole.

    Like

  3. Well Well & Consequences October 28, 2015 at 5:38 AM #

    Only now is it resounding in some minds, most are too numb from other miscarriages they have experienced over the decades.

    Like

  4. Well Well & Consequences October 28, 2015 at 6:03 AM #

    http://www.barbadostoday.bb/2015/10/28/govt-sinking-deeper-in-debt/

    Like

  5. Well Well & Consequences October 28, 2015 at 6:15 AM #

    I am sure it would be much better than what obtains now, too many lawyers in parliament who take themseles and their own idiocy too seriously. There is no law that says you have to be a lawyer to govern, any intelligent individual is quite capable. George Washington was not well read and he handled things and that was when they were still making it all up.

    It’s just that lawyers believe themselves to be special and above everything so they run up front and try to push everyone else out of the way, that also applies to doctors but to a lesser extent.

    Like

  6. David October 28, 2015 at 6:20 AM #

    @Well Well

    Your last comment is a generalization. A lawyer is a human being with the opportunity to be a good citizen like any other person. We have to be sensible how we critique issues. We have to focus on revamping the governance system.

    Like

  7. Stooping Crane October 28, 2015 at 6:21 AM #

    Anyone else would have done the honourable thing and resigned.

    Like

  8. lawson October 28, 2015 at 6:52 AM #

    If the numbers are not bad…. why does this guy only have one suit.

    Like

  9. Well Well & Consequences October 28, 2015 at 7:37 AM #

    David…that’s part of revamping the governance system, that is why I generalized, most governments are made up of lawyers, the bad ones know who they are, so do the good ones, unfortunately there are more bad ones than good one. I would ask you to name all the good ones in Barbados, but I am well aware that it would be being provocative. .lol

    We are trying to give the dirty lawyers a chance to take a good luck at themselves, self examination, coddling them is giving them a license to continue their rotten behavior, I am sure you agree David.

    Like

  10. Well Well & Consequences October 28, 2015 at 7:49 AM #

    David….in responding to your opinion on the Cahill link, since Inniss Sinckler, Lowe, Estwick, Byer and a few others who are not lawyers but a minority of other professions, it’s much easier to attack them indiviually, they are easier game, but when you have a gang of lawyers all doing them same stupid things and are all on one location, you have to generalize.

    Again, the good ones, if they exist in that gang, know exactly who they are and should have nothing to worry about, just carry on smartly.

    Like

  11. Frustrated Businessman October 28, 2015 at 7:59 AM #

    As I predicted, the only taxes being earned are property taxes. They will increase again, and then a grading system will be introduced to tax commercial properties even further. Those costs will be passed on to consumers who will suffer more as commercial rents increase.

    VAT will also increase again, they have to earn more VAT from less business activity.

    Corporate tax will continue to fall. Not only are we earning less, we are paying less of what we should. Small business has been forced underground to survive, never to rise again, or even aspire to grow. Swan Street off-grid business is our new model, not Goddards.

    Capital flight will increase. If Cahill goes ahead, our greatest tourism asset Sandy Lane will go up for sale and the principals will leave their adopted homes.

    And then when the collapse comes at the end of next year, they will lay off all the civil servants who voted for ‘no job losses’ in 2013.

    It is inevitable, this gross income/expenditure mismanagement cannot go on forever. What is so sad is that the longer it takes to play out, the less chance we have of real recovery.

    There will be no economic recovery under Fumble’s Fools.

    Like

  12. William Skinner October 28, 2015 at 9:20 AM #

    We continue to throw old and irrelevant solutions at our problems. It is obvious that the current government’s economic and fiscal policies are not working. Failure to be bold and innovative coupled by opportunistic economists have placed us in a very sorry predicament. We are stuck in the 1960s while the world is approaching 2016. As I have often said, it is impossible to produce a 2015 model on a 1950 production line!

    Liked by 1 person

  13. Artaxerxes October 28, 2015 at 10:04 AM #

    Obviously, government would have realized revenue from the land taxes, since there have been significant decreases in corporation, PAYE and value added taxes. However, the short-fall was “buffered” by government borrowing from Barbadians through the issue of bonds. Note that these bonds represent a debt to government and the debt incurred must be included in current budget projections, especially since the accrual system of accounting is being used.

    The government also seems to be silent on the important issue of the rapid aging population in Barbados. This fact will obviously present the island with the prospect of a high future costs that may not be necessarily recognized in the current budget projections.

    For example, there has been a significant increase in the abandonment of senior citizens at both the general and district hospitals; their upkeep has to be undertaken by the state. Also, many individuals have not properly prepared themselves for retirement, and will often depend on the state for financial and other support. These factors, as well as the services that are already being provided by government, will ultimately incur additional costs to the tax payers of this country.

    The current expansionary fiscal policy has coincided with rising, and largely unfunded, age-related spending (pension and health care costs). This island’s demographics clearly indicate that the ratio of senior citizens to working age population is projected to increase significantly, as well as per capita health care costs.

    In other words, government has to borrow or increase taxes to finance these rising costs.

    Like

  14. Willie's October 28, 2015 at 10:28 AM #

    Tell them Frustrated Bizzy, tell them.

    Like

  15. Frustrated Businessman October 28, 2015 at 10:51 AM #

    Willie’s October 28, 2015 at 10:28 AM #
    Tell them Frustrated Bizzy, tell them.

    I suspect Bizzy is allot more frustrated than most of us, having invested much more in this country than most of the rest of us put together.

    Like

  16. Willie's October 28, 2015 at 11:00 AM #

    Frustrated Bizzy
    You mean like Ionics? That is not so much an investment as the great train robbery.

    Like

  17. Well Well & Consequences October 28, 2015 at 11:13 AM #

    The country has provided more to Bizzy and his bròther than they can ever live long enough to repay.

    Like

  18. David October 28, 2015 at 12:15 PM #

    The governor of the central bank revised is forecast for growth this year but was confident to forecast growth for next year. Interesting he made the point that the growth will only be achieved his public projects are implemented to time.

    Like

  19. NorthernObserver October 28, 2015 at 12:57 PM #

    I must admit that 6 years of business school does not help to interpret these numbers as presented. Dr, Worrell refers to an increase of 99 million in property tax, yet when I look at the item line on p9 of the report I cannot find the math which results in a +99 number. But I believe he is correct.
    The fall in Corporate taxation is concerning, without explanation in the report; it suggests that local corporations are setting up “offshore” and paying taxes “elsewhere”. If true, a worrying trend.

    Globally, income tax is nearing death. Too many ways “around”, and increasingly governments rely upon the collectible taxes, consumption taxes like VAT (in BCB terminology…INdirect taxes), to actually get dollars in.

    The government continues to spend significantly more than it is taking in. And the rise in debt is seemingly “out of control”

    While dismal, even more concerning are comments like those echoed in BToday by the MofF, “You would get the impression we are giving Cahill more concessions than we have ever given to anyone else in the history of Barbados….the same argument was brought against Sandals, because they didn’t want the Sandals investment either”.

    The connection is when business people read this; companies against which they must compete (and ferners too) being provided with advantages they are not afforded, the resulting attitude is “phuck you, we gine create our own advantages, and the call to St.Lucia is made”. It degenerates into a downward spiral.

    Like

  20. Prodigal Son October 28, 2015 at 2:26 PM #

    @ David October 28, 2015 at 12:15 PM #

    The governor of the central bank revised is forecast for growth this year but was confident to forecast growth for next year. Interesting he made the point that the growth will only be achieved his public projects are implemented to time.

    ………………………………………….

    I had to laugh when I heard the governor.

    Any professional with any self value or conscience would say…….hey, each time since 2008 that I have made a prediction, it has not materialised………I am now out of options….. egg is all over my face……. I can no longer do this……. I have lost all my credibility and I will go.

    The medium term fiscal strategy plan was to be the saviour of the Barbados economy and the man had to come back (after all the morons including the dead king were touting its value) and admit that it failed….twice!

    David, you are so right, we have become so numb to this lying deceitful government that when they speak, no one responds. It is sad.

    Does anyone believe that the unemployment rate has gone down? The economy is at its worse, businesses are laying off every day as they contract and yet the unemployment rate has gone down? Unbelievable.

    Say it aint so, governor ……..tell us that you have not been manipulating that figures!

    Liked by 1 person

  21. SITH October 28, 2015 at 3:45 PM #

    Interesting to see the visitor numbers from Brasil. One flight a week and 3300 total visitors for 9 months averages out at 86 people per flight. What subsidy amount is the government paying to GoL airlines?

    Like

  22. Spectator October 28, 2015 at 9:17 PM #

    Concering the lawyers in parliament: The Romans said, iudex non calculat.

    Like

  23. Just Asking October 29, 2015 at 12:27 AM #

    Willie’s October 28, 2015 at 11:00 AM #

    Frustrated Bizzy
    You mean like Ionics? That is not so much an investment as the great train robbery

    Willie you killing me you send Frustrated Bizzy into hiding in one of his gazillion companies set up from the soaking he puts on government coffers.

    The Governor’s report was not music to the ears we can only hope for improvement come 2016.

    The slap in the face was $22 million loss from the Customs strike. What a catastrophic waste of money which may have set growth at 0.5 instead of 0.3. Bush Tea’s candidate for PM the worthless Caswell and the numbskulls at NUPW are pleased as punch with their handiwork.

    Link the hit the economy took from the irrational Customs strike with the COP’s chilling analysis on the entry of firearms and we are in a dark place. $22 million tossed away in a struggling economy not a roll of toilet paper to show for it. This is a shameful chapter in industrial relations. A chapter never to be repeated.

    Like

  24. Atrue Freeman October 29, 2015 at 5:50 AM #

    Minister Sinckler, this is a good time to start your privatization program – a lot of BHL money will soon be available.

    Like

  25. Bush Tea October 29, 2015 at 7:17 AM #

    @ Just Asking
    So you are saying that Caswell is responsible for a $22M drop in customs duties?
    WHAT A MAN!!!

    If Bushie was MoF, and a little fellow who runs a micro union could so casually reduce my National growth by 0.2% ….. Wuh shiite fella …. Bushie would be ASHAMED as shiite… Hell the bushman would resign and consider himself a bald pooch dog….
    …but of course Stinkliar may be a bit confused with what 0.2% means….so perhaps we should stick with the $22M approach…

    Look Joker …. The WHOLE point of LEADERSHIP is that YOU take responsibility for results. REAL leaders do not go around blaming their followers for results….because ANYTIME that the followers are MORE influential than YOU are, in affecting results, then that tells you that you are taking up SOMEONE ELSE’s space…..

    Like

  26. Ping Pong October 29, 2015 at 8:07 AM #

    Th e Governor of the Central Bank has actually put the blame of Barbados poor economic at the feet of the Government.

    ” The Central Bank’s current projection for growth in 2015 is now 0.5 percent, mainly because of the delayed implementation of the previously highlighted investment projects.”

    Like

  27. David October 29, 2015 at 8:26 AM #

    @Bush Tea

    Ignore waiting, the BU troll.

    Like

  28. David October 29, 2015 at 8:32 AM #

    @Ping Ping

    And to be specific the Prime Minister who has cabinet subcommittee responsibility to ensure timely rollout of projects. Didn’t Sinckler promise the Four Seasons/Paradise deal was close to signoff and with the lawyers? What is the snag preventing close this time around? What is pitiful is the lack of communication. No respect!

    Like

  29. Bush Tea October 29, 2015 at 8:33 AM #

    @ David
    Bushie likes trolls…🙂

    Like

  30. Artaxerxes October 29, 2015 at 10:27 AM #

    William Skinner October 28, 2015 at 9:20 AM #

    “We are stuck in the 1960s while the world is approaching 2016. As I have often said, it is impossible to produce a 2015 model on a 1950 production line!”

    Your above comments are quite interesting and reminded me of Denis Kellman’s response to the water woes currently being experienced in the certain areas of this island.

    Kellman made the following comments on his face book page on September 30, 2016 at 6:42am:

    “A blessed morning to all , especially the good residents of St Lucy who had their water woes, some who received relief from water tankers and some who had to rely on the stand pipe. One lesson out of this ordeal is that people need to listen to sensible suggestions. For years i have advocated that we should not remove the standpipes or the public bathes. The bright people did not listen and removed some. Over the last 6 days i saw what they did not see as usual.”

    Bear with me because I cannot see the rationale in Kellman’s statement, hence (since Kellman may be considered just as radical as Comissiong), out of fear, I have to tread carefully making my comments on this issue, lest I be brutally attacked by the “dynamic trio” of Donna, Bushie and De Word.

    Having provided that disclaimer, I believe that “standpipes” and public baths were used in an era when Barbadians could not afford to include tap and bathroom facilities in their homes or they lived in areas where it was probably difficult to have a water supply.

    Correct me if I’m wrong, but if the water supply to a district services both residents and “standpipes” and public baths, if that district experienced a lack of water, will not the “standpipes” and public baths have a lack of water as well?

    Unless “standpipes” and public baths in that district receive water from one source, while residents receive their water from a different source.

    Then again, my comments may be non sequitur, lack objectivity or impractical, because I “still think in the same linear paths as many folks of the past.”

    Like

  31. Bush Tea October 29, 2015 at 12:04 PM #

    @ Artax
    Since you want Bushie to be the Devil’s advocate (or even worse… Kellman’s – cause the Devil smart) ….it is fairly logical what Kellman is saying…
    It is VERY much in like with the regular theme pushed by the Fumbling Froon… about going back to the canefields and being lucky we that have current….

    If Bajans were forced to revert to standpipes again – for example if the price of water was so high that no one could afford it… or is the BWA staff all relaxed in their new fancy headquarters instead of fixing the damn leaks, then the demand for water would fall of so drastically that there would be enough to service the standpipes…🙂

    Problem solved.

    The OTHER problems like diseases, infections and other health issues that would result from this would be John Boyce’s problem not Kellman’s….
    You must understand that Kellman is ‘advised’ by AC…..

    Like

  32. lawson October 29, 2015 at 12:37 PM #

    BT the way I see it is most bajans way of thinking of using less plastics to put your land fill is not to wear a condom so to fix problems like water would seem to be a far reach. You will have to solve the problems the old fashioned way….emmigrate

    Like

  33. Al Capone October 29, 2015 at 12:57 PM #

    When this GOCB going resign doah! Every quarter he saying the same ole SHOITE….o.5% growth. Worrell hear muh man..it sounds bad. This is now the DLP second term, 7 1/2 years to be exact and we hear the same thing….”recession is to blame”. Gimme a break man. International recession dun now some 5 yrs ago so how the heck we still cannot get this economy going? Truth is we going round in circles wid these clowns at the helm. Thank God wanna getting put out next time or we would be hearing the same ole 15 years from….LOL

    Like

  34. Dompey October 29, 2015 at 1:45 PM #

    Artax

    I am not quite sure where you were born and bred in Barbados, but I did recall quite vividly on numerous occasions when there were a water shortage of water in the town locality that many of the Standpipes remained running.
    So Kellman has a valid point as far as the standpipes and public baths are concerned in my estimation.

    Like

  35. David October 29, 2015 at 5:16 PM #

    The governor’s economic review can be compared to the post match men’s cricket interview .

    Like

  36. Artaxerxes October 29, 2015 at 5:31 PM #

    Dompey October 29, 2015 at 1:45 PM #

    “Artax: I am not quite sure where you were born and bred in Barbados, but I did recall quite vividly on numerous occasions when there were a water shortage of water in the town locality that many of the Standpipes remained running. So Kellman has a valid point as far as the standpipes and public baths are concerned in my estimation.”

    In this modern era when government agencies are moving to eliminate the use of “pit toilets” and “bathing in the yard;” when people are being encouraged by affix water tanks to their homes; when the NHC has moved from building one bedroom units (such as those found in the Pine) to “high-rise” housing complex with modern facilities;

    You are agreeing with Kellman and advocating the use of standpipes and public baths. The Urban Dictionary describes “dompey” (also known as a “Dip”) as “a pinch of chewing tobacco that you place in your lip.” If you acquired the moniker on that basis, perhaps the tobacco has affected your brain.

    The blog-master implied that you seem to be still living in the early 1980s. However, William Skinner’s response to this topic, re: “stuck in the 1960s while the world is approaching 2016,” is a more accurate description of you.

    Like

  37. Deputy Dog deputy October 30, 2015 at 11:43 AM #

    Delisle is a real moojan . Just because he finds a pack of condoms does not mean he has to blow DEM up to show his impotence. Worrell in case you don’t know the Central bank is there to reflect independently of Gov’t and tell the country where we stand…..”STABLE STABLE…Growth 0.5 Growth 0.5. All is well”….we holding our OWN”. What a heap of rubbish!!!

    Like

  38. Spectator October 30, 2015 at 3:09 PM #

    The structural deficit in Bim is simply too high due to the fact that Bim´s political class wants to maintain a full-scale government which fits big countries but not a microstate. No taxation can change this fact. I assume that Bim needed a 1/3 reduction in public servants and/or outsourcing to private companies to come back on track. As long as gov. sucks all the money from the loan-market, the credit crunch for private companies will go on. Currently, money is not used for any new private investment but to pay the by far too many public servants.

    Example: The local building of the Supreme Court is bigger than the building of the Supreme Court of a country amongst the top-5 global economies (which houses more than 130 federal judges plus 250 other staff members). Another example: The BWA-building.

    Soon the point of no return is reached where devaluation is inevitable at the detriment of the people. Barbados would be the first country in the world to defend currency status during a period of assumed 10 years recession.

    Like

  39. Spectator October 30, 2015 at 3:34 PM #

    Barbadians should look abroad which place did best and why. That is not Singapore with its colonial fines but a certain province in Switzerland. I would like to focus on the province called Zug. GDP per person is 150,000 CHF = approx. 300,000 BBD. At the beginning of the 20th century, this place was the Swiss Haiti, poor and cold. Zug has absolutely no natural resources like gold, oil, sun etc. pp. However, after World War I the local government began to convert Zug into an offshore-carrier within the mountains and to insist on lean government. The duty of tax commissioners there is not to rob citizens but to advise them how to save taxes. If citizens do not like a new bill, popular vote is at place to teach government a lesson. Being a politician is not a full-time job to feed the family but a task beside other jobs. So politicans are in touch with reality. Citizens do not to go to administration, they just do e-government.

    What was achieved there can be done in Barbados as well. The population is highly educated. It only needs the political will to abandon the British and American tax- and spending habits and to copy by far more successful societies. There is plenty of room left how Bim can improve as an offshore jurisdiction. OECD might now cry out, but after the financial crisis is settled, there will be a new need for offshore services.

    Like

  40. Bush Tea October 30, 2015 at 4:16 PM #

    @ Spectator
    Skippa, if Barbados even ATTEMPTED to follow Zug’s example …those OECD white people would ‘black-list’ our asses so darkly, that even the whites bout here would cry racism…

    Such high level schemes as low-tax money laundering are reserved for ‘certain’ peoples bozie…

    Like

  41. Exclaimer October 30, 2015 at 5:00 PM #

    @ The BU swine!

    Why do we in the Caribbean allow “developing” countries such as India and China a free pass in the continent of Africa? What do those two countries see in that poor, underdeveloped continent (Africa) that we in the Caribbean seem oblivious to?

    I implore you to watch the video(s) below and build your own conclusions:

    “India embraces Africa’s leaders at summit in New Delhi” (7 hours ago)

    http://www.bbc.co.uk/news/business-34676919

    How sad that we reside in a country with a majority African population yet our leaders continue to underappreciate the economic, social and political potential of Africa.

    With regards to Africa, I believe that we in the Caribbean region have missed the boat. Our insularity will be the death of us.

    Like

  42. Spectator October 30, 2015 at 7:50 PM #

    @ Bush Tea
    and current news on “blacklisting” the Caribbean

    Everybody has a price-tag. Gov. should invite the right decision-makers in the European Parliament and selected member states for an “informative tour on specific problems of small, vulnerable economies” to a local hotel for two weeks. Change of attitude in no time. So they work in Switzerland, so lobbying works everywhere.

    Talking on forums is good, proactive “landscaping politics” is better – and in this case legal, of course.

    What happens in Greece is incredible. No proper tax collecting system, no land registry, problems with land tax etc pp. Before EU throw stones at the Caribbean they should clean up the Mediterranean mess.

    Like

  43. islandgal October 30, 2015 at 9:29 PM #

    “Correct me if I’m wrong, but if the water supply to a district services both residents and “standpipes” and public baths, if that district experienced a lack of water, will not the “standpipes” and public baths have a lack of water as well?”

    Rotfl Artaxerxes……Kellman loves to piss on people and tell them that it is raining!

    Like

  44. islandgal October 30, 2015 at 9:34 PM #

    “With regards to Africa, I believe that we in the Caribbean region have missed the boat. Our insularity will be the death of us.”

    The boat dropped us off and we forgot that we were African. Massa made sure we believe in his God and that his God will bring salvation to us one day. Won’t hold my breath though….

    Like

  45. Prodigal Son October 30, 2015 at 10:15 PM #

    It was really laughable to see where we have come to as a nation………….

    …………….that after all these years that we have moved away from stand pipes, we have BWA personal parading that they are delivering goodies to people…….five gallon buckets to catch water in 2015…..all the while promoting 50 years of independence.

    What progress!

    Like

  46. islandgal October 30, 2015 at 10:47 PM #

    Prodigal I was saying to someone a few days ago that Barbados has reverted to the 60’s just before Independence. Population cannot access running water in rural communities, garbage collection sporadic and health care in shambles. What have we to show for 50 years????

    Like

  47. Colonel Buggy October 30, 2015 at 11:24 PM #

    islandgal October 30, 2015 at 10:47 PM #

    Prodigal I was saying to someone a few days ago that Barbados has reverted to the 60’s just before Independence. Population cannot access running water in rural communities, garbage collection sporadic and health care in shambles. What have we to show for 50 years????
    …………………………………………………………………………………………………
    Wasn’this the aim of the Prime Minister when he openly said , in his ridiculing and put-down manner, that Barbadians have Wall houses, Running water and electrified homes? Illaro Court excluded.

    Like

  48. Colonel Buggy October 30, 2015 at 11:32 PM #

    islandgal October 30, 2015 at 9:29 PM #
    ……………………………………………………………………
    And we wonder why Chinks have resurfaced, and are on the increase in Barbados?

    Like

  49. Exclaimer November 1, 2015 at 7:04 AM #

    Stuart is right. Can you imagine a batsman being sent to the crease and the opposition captain insists that the batsman’s ankles be bound with rope? Such a request would be preposterous.

    We know that Barbados is being mismanaged. However we should not dismiss those external actors sitting in smoke filled rooms who have a plan in mind to bring our region to our knees. Those old European colonists are still there in the back ground pushing buttons and passing questionable legislation with the intention to weaken our resolve and to undermine our economy to such an extent that we may consider running cap in hand back to them.

    We should be forming stronger bonds with other developing countries who we may share a “similar” history with whether it is a country such as Kenya, Malaysia, India or Cuba.

    Our region and our country would be that much stronger if we were to disentangle ourselves from that old European web of deceit and maliciousness.

    Like

  50. David November 1, 2015 at 7:31 AM #

    @Exclaimer

    So what is preventing the Stuart administration of two terms from forging and acting on non traditional relationships as you suggested?

    Like

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