Business

Central Bank of Barbados Stands by its Economic Reviews

In response to a letter published in the Saturday Sun on August 17 questioning the Central Bank of Barbados’ economic report and analysis, the Bank reiterates its unwavering commitment to accuracy, transparency, and public trust – values that have been at the core of our institution throughout its 50- plus-year history. The Bank recognises the critical role that accurate, transparent, and objective economic reporting plays in maintaining public confidence, and takes considerable care to ensure that the information we publish is both reliable and reflective of current economic realities.

The economic data, including statistics on economic growth, nominal GDP, inflation, and unemployment, are produced following best practices. While the Barbados Statistical Service (BSS) is responsible for producing much of this data, we rigorously interrogate their submissions to ensure thoroughness and reliability. Our reports are grounded in robust statistical frameworks, supported by rigorous analysis, and are frequently reviewed by international partners such as the International Monetary Fund (IMF) to ensure accuracy.

The 2023 GDP estimates, produced by the BSS and reported by the Central Bank, have been reviewed and validated by an IMF technical assistance mission. This external review provides additional assurance of the validity of our data, which we stand by confidently.

Specific concerns were raised about our estimates of tourism earnings and their contribution to GDP. To clarify, the estimated performance of tourism earnings in the first half of 2024 is comparable to that of the first half of 2007, a period when Barbados also hosted a major international cricket event. In both instances, we observed a significant increase in the ratio of tourism earnings to gross domestic product – rising from 15.9 percent in 2023 to 20.9 percent in 2024. This is consistent with the increase observed from 22.7 percent to 27.5 percent between 2006 and 2007.

Tourism estimates for the first half of 2024 are supported by several key indicators:

Long-stay arrivals increased by 17.9 percent over the first half of 2023 (source: Barbados Statistical Service).
Hotel room rates rose by an average of 10 percent, with the second quarter showing a particularly strong increase of 13.3 percent over the second quarter of 2023 (source: Smith Travel Report).
Cruise arrivals recorded a 17.9 percent increase, with cruise calls rebounding significantly in the second quarter of 2024 (source: Barbados Statistical Service).
Food prices experienced a general increase of 5.3 percent, indicating that visitors paid more for food, contributing to higher tourism spending.
These data points collectively underpin our estimate of a 4.5 percent economic growth rate for the first half of 2024. We remain confident in our assessment, which reflects a strong recovery in the tourism sector post-COVID, driving economic expansion across other sectors.
We acknowledge the concerns raised by some Barbadians regarding the perceived disconnect between the economic reports and the actual conditions they experience. It is important to understand that while the economy may be growing, it can take time for the benefits of this growth to be felt by every member of society – a phenomenon observed globally, including in advanced economies like the United States. This is why we have consistently emphasised in our economic reviews the need for increased investments to achieve sustainable and inclusive economic growth that will improve the lives and livelihoods of all Barbadians.
We welcome public discourse on our economic reviews and are committed to engaging with stakeholders to address any genuine concerns. If discrepancies exist between our reported data and independent analyses, we invite dialogue to assess and verify these numbers. Our primary objective is to provide the most accurate and comprehensive picture of Barbados’ economic performance, even as we acknowledge the inherent challenges in producing projections in a dynamic and uncertain global environment.
We assure all Barbadians that there is no intent to manipulate or distort economic data. We will continue to refine our models and methodologies, ensuring that the Central Bank remains a trusted source of clear and accurate economic information.
Once again, we thank you for your concerns and look forward to opportunities to strengthen our processes and our relationship with the public. (PR)

Business

GALA DINNER CELEBRATES 40TH ANNIVERSARY

The Light & Power Employees Co-operative Credit Union Ltd. (LPECCUL) marked an impressive milestone on Saturday night, hosting a memorable 40th Anniversary Gala Dinner at the Accra Hotel. The evening was a celebration of history, resilience, and growth, honouring LPECCUL’s four decades of commitment to financial empowerment and community service in Barbados.

Guests arriving at the gala were greeted with the warm sounds of steelpan music by Ms. Allana Goodridge, a graduate and former junior member of the credit union, who set an elegant tone for the evening. The festivities were expertly guided by Master of Ceremonies Paula Palmer, who delighted the crowd with a mix of exciting prizes and giveaways sponsored by Stade’s Distillery Visitor Centre.

A highlight of the evening was the special achievement award presentation by Mr. Anton Lovell, CEO of Co-Operators General Insurance Company Limited. Mr. Lovell recognised LPECCUL for its outstanding success and commended the longstanding partnership between the two institutions, underscoring the strength of their collaboration.

The evening’s keynote speaker, Lt. Col. Trevor Browne, a founding member of LPECCUL, delivered a compelling speech on the origins of the credit union. He shared insights into its formation, early challenges, and eventual growth, citing the various business ventures and investments made over the years. Lt. Col. Browne emphasized the importance of credit unions in Barbados expanding their focus to attract and support younger members, highlighting the value of investing in youth-led businesses as a way forward.

Closing the event, LPECCUL President Sheena Edwards delivered a heartfelt Vote of Thanks. She expressed deep appreciation to the evening’s special guests, including representatives from credit unions across Barbados, eight of LPECCUL’s original 40 founding members: Anthony Seale, Charles Holder, Donald Hoyte, Oliver Jones, Ian Bridgeman, Julie Alleyne, Keith Burnett and Lt. Col. Trevor Browne, and former company manager Curtis Smith. She also extended her gratitude to the dedicated LPECCUL staff, The Light & Power Employees Co-operative Credit Union Ltd.whose hard work and commitment have been instrumental to the credit union’s enduringsuccess.

The 40th Anniversary Gala Dinner was a celebration not only of LPECCUL’s history but also of its ongoing mission to inspire financial independence and support the community. As LPECCUL continues to innovate and expand its services, the credit union remains committed to fostering financial success for all members.(PR)

Business

Barbados To Host Regional Economic Conference

Local, regional, and international economics, finance, and development experts will gather in Barbados from November 6 to 8, 2024, for the 55th Annual Monetary Studies Conference (AMSC).

The event, which the Central Bank of Barbados is co-hosting with the Caribbean Economic Research Team (CERT), will be held under the theme: “Macroeconomic Management in an Era of Polycrises.”

“We are living at a time when our islands face multiple issues, ranging from high debt levels to climate change, to an aging population to geo-political tensions such as the ongoing Ukraine-Russia war and the Israel-Hamas conflict,” Director of Communications, Information, and Outreach at the Central Bank, Novaline Brewster, said.

“Each of these on its own would represent a challenge. Combined, they could threaten the stability of our economies and the livelihoods of our citizens. The AMSC gives us an opportunity to bring together some of the leading minds to share their insights and offer research-based approaches to addressing these various crises.”

Ms. Brewster revealed that to complement the more technical sessions, on the second day of the conference, November 7, at 4:00 p.m., American economist Professor Jeffrey Sachs will deliver the 37th Adlith Brown Memorial Lecture, the topic for which will be the same as the conference’s theme.

“In addition to the Adlith Brown lecture, we will be hosting a panel discussion entitled: “The Role of Central Banks in Facilitating the Mobilisation of Regional Investment for Development Support” on the final day, November 8, at 10:15 a.m. The panel for that event will comprise several of our regional central bank governors,” she revealed.

Both the panel discussion and the lecture will be livestreamed on the Central Bank of Barbados’ Facebook page and YouTube channel.

Central Bank of Barbados will host the 63rd gathering of this group as Barbados’ Governor, Dr. Kevin Greenidge, is the current Chair of the committee. (PR/GIS)

Business

Barbados to Host Regional Economic Conference

Local, regional, and international economics, finance, and development experts will gather in Barbados from November 6 to 8, 2024 for the 55th Annual Monetary Studies Conference (AMSC). The event, which the Central Bank of Barbados is co-hosting with the Caribbean Economic Research Team (CERT), will be held under the theme “Macroeconomic Management in an Era of Polycrises.” “We are living at a time when our islands face multiple issues, ranging from high debt levels to climate change to an aging population to geo-political tensions such as the ongoing Ukraine-Russia war and the Israel-Hamas conflict,” said Novaline Brewster, Director of Communications, Information, and Outreach at the Central Bank. “Each of these on its own would represent a challenge. Combined, they could threaten the stability of our economies and the livelihoods of our citizens. The AMSC gives us an opportunity to bring together some of the leading minds to share their insights and offer research-based approaches to addressing these various crises.”

The three-day conference will feature sessions related to financial development and financial stability, adjusting to climate change, digital innovations and transformation, regional integration and governance, and regional economic development. Brewster revealed that to complement the more technical sessions, on the second day of the conference, November 7, at 4:00 p.m., American economist Professor Jeffrey Sachs will deliver the 37th Adlith Brown Memorial Lecture, the topic for which will be the same as the conference theme. “In addition to the Adlith Brown lecture, we will be hosting a panel discussion entitled “The Role of Central Banks in Facilitating the Mobilisation of Regional Investment for Development Support” on the final day, November 8, at 10:15 a.m. The panel for that event will comprise several of our regional central bank governors.” Both the panel discussion and the lecture will be livestreamed on the Central Bank of Barbados’ Facebook page and YouTube channel.

The Annual Monetary Studies Conference, the oldest academic conference of economists in the Caribbean, is held in a different territory each year to coincide with the second of the Bi-Annual Meetings of the CARICOM Committee of Central Bank Governors. Central Bank of Barbados will host the 63rd gathering of this group as Barbados Governor Dr. Kevin Greenidge is the current Chair of the committee.