Minister of Finance Chris Sinckler insists the economy is on course for a return to growth despite the most recent downgrade by Standard and Poor’s (S&P).
In his first public response to the international rating agency’s decision last week to lower Barbados’ long-term local currency sovereign credit rating from CCC+ to CCC, Sinckler said yesterday that ratings were “not a management tool for Government in terms of fiscal programming”.
According to Central Bank forecasts, he said, the island was likely to register between 1.5 and 1.7 per cent growth, falling short of the two per cent predicted prior to this year’s Budget.
“Our expectation is that growth will continue and because we have a tight fiscal programme, demand is going to be constrained. Once demand is constrained in an economy like Barbados, it is likely that growth is going to come back,” he told the media on the sidelines of the St Michael Battle Of The West Primary School Quizz Competition at St Leonard’s Boys’ School. (GC)
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