IF GOVERNMENT GOES through with large-scale public sector lay-offs, an economist says to expect a huge ripple effect throughout the economy, which is already under severe pressure.
President of the Barbados Economics Society (BES), Jeremy Stephen, however, told the DAILY NATION: “If this actually happens – the cuts of 3 000 public sector workers – we believe it is a major step to address the recurring deficit.
“Most important, we believe it cannot be the only action that Government takes but it should be part of a wider move to improve efficiency in Government and enhance business facilitation.”
The economist predicted that such cuts, though needed, would cause consumer confidence in the economy to deteriorate further, signal to the private sector that it too could cut employees, cause bank delinquency to rise rapidly and put severe pressure on the National Insurance Scheme (NIS).
