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

Re-imagine Caribbean HR: The Future Operating Model

Article by Kimberly Chan, PMQ, MBA

As a recently founded Caribbean body, the Caribbean Institute for Human Management (CaIHRM) hosted its first webinar on October 30, 2024, with a focus on Re-imaging Caribbean HR: The Future Operating Model, staying true to its mission, “As the voice of Caribbean HR is to unite and empower regional bodies through innovative representation, advocacy and capacity building.”

This inaugural event was opened by Mrs. Georgia Donaldson (Director – CaIHRM) and moderated by Mr. Michael McAnuff-Jones (Chairman – CaIHRM) who guided the rich discussions with presentations from the powerful and dynamic panel of regional executives and trailblazers which included:

Mrs. Cavelle Joseph-St. Omer – President, CaIHRM & Human Resource Management Association of Trinidad & Tobago (HRMATT)
Dr Cassida Jones Johnson – Director, CaIHRM & Human Resource Management Association of Jamaica (HRMAJ)
Ms. Esaura Cumberbatch – Director, CaIHRM & Immediate Past President, The Bahamas Society for Human Resource Management
Mr. Nicholas Roberts – Human Resource Management Association of Barbados (HRMAB)

The panellists discussed strategic initiatives through the five (5) HR Operating Models highlighted in a recent article by Mckinsey presented by the panellists who added their interpretation and views as follows:

Ulrich+

This model is an adaptation of the classic Ulrich model, with HR business partners developing functional spikes and taking over execution responsibilities from centers of excellence (CoEs). In turn, CoEs are scaled down to become teams of experts and selected HR business partners. They are supported by global business services and have a digital operations backbone. Many CHROs believe the classic Ulrich model is not up to solving today’s HR challenges, with HR business partners lacking the skills and time to keep up with the latest HR developments. Inflexible CoEs limit agile reactions, while other organizational boundaries have steadily become more permeable. Multinational businesses with mature and stable business models are often the ones that experience these pain points.

Agile

This model calls for a smaller number of HR business partners, with an emphasis on counseling top management, while CoE professionals focus on topics such as data and analytics, strategic workforce planning, and diversity and inclusion. The freed-up resources are pooled to implement cross-functional projects. CHROs who favor this operating model believe that HR needs to accelerate to keep up with the increased focus on execution exhibited on the business side and to prevent HR from hindering rapid transformation. Companies are applying this and other agile methodologies when experiencing rapid growth or discontinuity. (For an example of this model, see sidebar “An agile transformation.”)

Ex-Driven

This model is meant to help CHROs gain a competitive advantage by creating a world-class EX journey. Putting EX first means allocating disproportionate resources toward “moments that matter.” For example, HR, IT, and operations experts could be granted full responsibility to jointly plan, develop, and roll out a critical onboarding process. By creating a world-class EX, HR becomes the driving force in bridging cross-functional silos and in overcoming the patchwork of fragmented data and processes that many organizations suffer from today. The companies employing this model are highly dependent on their top talent, with a small set of clearly defined competencies. (For more on this model, see sidebar “Optimizing the employee experience.”)

Leader-Led

In this model, CHROs transition HR accountability to the business side, including for hiring, onboarding, and development budgets, thereby enabling line managers with HR tools and back-office support. This archetype also requires difficult choices about rigorously discontinuing HR policies that are not legally required. Too much oversight, slow response times, and a lack of business acumen in HR have led some companies to give line managers more autonomy in people decisions. Companies exploring this choice typically have a high share of white-collar workers, with a strong focus on research and development.

Machine-Driven

With this model, algorithms are used to select talent, assess individual development needs, and analyze the root causes of absenteeism and attrition—leaving HR professionals free to provide employees with counsel and advice. As digitalization redefines every facet of business, including HR, CHROs are looking for ways to harness the power of deep analytics, AI, and machine learning for better decision outcomes. Organizations that are experimenting with this are primarily those employing a large population of digital natives, but HR functions at all companies are challenged to build analytics expertise and reskill their workforce.

(Excerpt – HR’s new operating model – December 22, 2022 | Article https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/hrs-new-operating-model)

This event hosted over one hundred (100) participants from HR Practitioners and Business Executives from across the globe. CaIHRM will continue to host events of a similar nature to engage in conversations toward the development of our Caribbean countries.

Business

$100,000 TO BE RAISED FOR FISHERFOLK

HILTON BARBADOS RESORT, ARTS COUNCIL, SUSTAINABLE CARIBBEAN AND FISHERIES DIVISION

Hilton Barbados Resort has joined forces with the Barbados Arts Council, Sustainable Caribbean and the Fisheries Division to host a charity event aimed at raising $100,000 to assist the fisherfolk community impacted by Hurricane Beryl in July.

General Manager of Hilton Barbados Resort, Jacques Montiel, explained that the important fundraiser, ‘Harbouring Hope – Operation Blue Recovery’ will be hosted on Saturday, November 16 at Hilton at 5:30 p.m., and all proceeds will go towards the recovery efforts.

He said, “We are deeply committed to supporting our community in times of need. Witnessing the devastating impact of Hurricane Beryl on the fishing boats, we knew we had to take action. Our event aims to provide the necessary support for our fisherfolk to recover and rebuild their livelihoods.

“This event is a testament to our commitment to supporting our fisherfolk through these challenging times, and through it, we aim to provide the necessary assistance for a full and swift recovery.”

Thanking the organisations for coming together to host the fundraiser, Chief Fisheries Officer Dr. Shelly-Ann Cox noted that the funds raised will assist with propelling the recovery efforts and getting boats back into the water to harvest fresh fish.

General Manager of Hilton Barbados Resort, Jacques Montiel (second from right) and
Chief Fisheries Officer Dr. Shelly-Ann Cox (third from left) during a recent site visit to finalise plans for the charity event, Harbouring Hope – Operation Blue Recovery, in aid of the fisherfolk community. Also pictured are Hilton’s Katrina Coleman (third from right) and Téresa Nicholls (right), the Division of Fisheries’ Akeila Chapman (second from left) and Barbados Arts Council’s Jill McIntyre (left).

She said, “No value can be placed on the future of our fishing partners who have not only lost their income, but also their peace of mind for the intermediate future. As you are aware, the fisheries sector is a cornerstone of our island’s economy and culture. Harbouring Hope: Operation Blue Recovery, the sector’s positive response after the catastrophic impact of Beryl would not be possible without the outpouring of love and support from collaborators across the private and public sector.

“We are extremely grateful to our partners for their acts of kindness and passion for hosting such a one of a kind event. This collaboration employs a creative approach to engage corporate Barbados through the use of ocean-inspired music, poetry, art and dramatizations, and will also pay tribute to fisherfolk stalwarts that have made a significant contribution to the fishing industry.”

Harbouring Hope – Operation Blue Recovery will feature silent and live auctions, raffles and local entertainment. (PR)

Business

63rd Bi-Annual Meeting Of CARICOM Central Bank Governors

The Central Bank of Barbados hosted the 63rd Bi-Annual Meeting of the CARICOM Committee of Central Bank Governors in Bridgetown on Thursday, November 7 and Friday, November 8, 2024.

The meeting brought together senior officials to address pressing economic issues and strengthen the region’s financial systems, with a focus on key topics such as financial stability, cybersecurity, and regional economic performance.

A significant portion of the agenda focused on financial stability, particularly the data issues regarding non-bank financial institutions. Furthermore, Governors discussed the modernisation of payment systems and advancing interregional payments to bolster the Caribbean’s competitiveness. The Governors highlighted the importance of enhancing financial resilience and cooperation across the region.

On the matter of cyber resilience, several presenters underscored the need for strong security measures across the financial sector amid rising cyber threats. The Governors marked a major milestone by signing a Memorandum of Understanding for the Cybersecurity Information Sharing Group, signalling a commitment to a unified approach in combatting cyber threats across the region’s central banks.

The Governors also reviewed regional economic developments and discussed growth outlooks against the backdrop of slowing global growth projections for 2025, ongoing geopolitical tensions, and the Caribbean’s vulnerability to climate change. The discussions acknowledged the need for adaptive strategies to navigate these uncertainties and sustain economic stability.

Investment to fuel development was another focal point, with the Governors agreeing on the importance of mobilising excess liquidity and addressing barriers to private sector investment. They expressed interest in exploring the appropriate modality to accelerate and expand financing of infrastructure projects and sustainable development initiatives across the region.

The 63rd Meeting was held alongside the 55th Annual Monetary Studies Conference (AMSC), where Governors John Rolle (The Bahamas), Kareem Michael (Belize), and Dr. Gobind Ganga (Guyana) participated in a panel discussion on “The Role of Central Banks in Facilitating the Mobilisation of Regional Investment to Support Development”, moderated by host Governor Dr. Kevin Greenidge.

The conference included sessions on digital innovations, climate adaptation, and regional integration, with a notable keynote address by renowned economist Professor Jeffrey D. Sachs, who delivered the 37th Adlith Brown Memorial Lecture.

At the close of the Meeting, Governor Greenidge handed over chairmanship of the CARICOM Committee of Central Bank Governors to President Richard Doornbosch of the Centrale Bank van Curaçao en Sint Maarten.

Committee members are: Chairman Dr. Kevin Greenidge (Governor, Central Bank of Barbados), Ms. Jeanette Semeleer (Governor, Central Bank van Aruba), Mr. John Rolle (Governor, Central Bank of The Bahamas), Mr. Kareem Michael (Governor, Central Bank of Belize), Mr. Richard Doornbosch (President, Centrale Bank van Curaçao en Sint Maarten), Mr. Timothy Antoine (Governor, Eastern Caribbean Central Bank), Dr. Gobind Ganga (Governor, Bank of Guyana), Mr. Ronald Gabriel (Governor, Banque de la République d’Haïti), Richard Byles (Governor, Bank of Jamaica), Mr. Maurice Roemer (Governor, Central Bank van Suriname) and Dr. Alvin Hilaire (Governor, Central Bank of Trinidad and Tobago). (PR/GIS)