IT’S TOO EARLY FOR PREDICTIONS, charges Professor Michael Howard, economist and senior lecturer at the University of the West Indies (UWI).
That’s what Howard thinks about the Central Bank of Barbados’ assessment that the recession affecting Barbados is easing.
“I believe it is best to wait until the end of March going into April before saying the economy is coming out of recession,” the economist told the DAILY?NATION.
The UWI professor said it was difficult to make such a prediction not knowing for example how the tourism industry would fear and how construction projections would take shape.
In the Central Bank of Barbados’ review of Barbados’ economic performance for 2010, Governor Dr Delisle Worrell submitted that the economy was expected to achieve a three per cent rate of growth as the effects of the global crisis abates.
“Employment has increased at 11 per cent and we are still depending much on construction projects like the Four Seasons project. We have to wait and see if these areas will perform,” he said.
Howard also noted that the fiscal deficit was a still a very serious problem.
“I don’t think that the tax measures will reduce it [fiscal deficit] considerably and unless some adjusment in labour costs is made, one is not going to solve the expenditure problem.”
Howard added that it was important to wait and see what happens with the tourism industry and how foreign reserves were positioned.
The Central Bank disclosed that foreign exchange reserves stood at $1 451 million at the end of last year, the equivalent to import of goods and services for about 21 weeks. (TS)
