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Wednesday, Oct 17, 2018

Economy contracted

Economy contracted
03 Aug
2018

The Barbados economy contracted by 0.6 per cent for the first six months of this year.

Central Bank governor, Cleviston Haynes, says they're confident the planned implementation of a home-grown International Monetary Fund programme, will help to turn the country's fortunes around.

Mr. Haynes made the comment as the bank revealed the half-year economic figures Thursday.

He explains this latest review has to be set in the context of the pending IMF programme, the selective debt payment default, and the overall budgetary measures.

The governor says traded sector activity benefited from increased sugar cane production, which actually enabled a modest rise in sugar output.

Meanwhile, Mr. Haynes also gave an update on the current level of foreign reserves.

Meanwhile the governor also addressed the issue of government's decision to suspend debt service payments, which had essentially reduced borrowing requirements during the quarter.

He also says discussions are ongoing with island's creditors, as efforts continue to finalise the agreement with the IMF.

The Central Bank Governor says the new administration's revised approach to the sale of state assets could potentially see a major shift away from the previous administration's intention to sell entities like the Barbados National Terminal company outright.

He identified some of the key major areas that Barbados will have to continue working on to help rebuild both local and foreign investor confidence to optimum levels.

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