THE BARBADOS ECONOMY continues to grow but the fiscal deficit remains a concern.
At the same time, the Central Bank has slightly lowered – from 1.6 per cent to 1.5 per cent – its overall 2016 growth projection for the economy.
Giving an update on the island’s economic performance in the half year review released this afternoon, Central Bank Governor Dr DeLisle Worrell said the economy grew by 1.3 per cent between January and June.
He called it “a slight deceleration from the first quarter, mainly on account of unexpected delays in major tourism investment projects”.
In terms of the outlook, Worrell said the reduced growth projection was “mainly because most major investment projects are behind schedule”.
“The main impact of the recent fall in the value of sterling may well be on the sales of villas and second homes to [United Kingdom] residents. The growth rate could be higher if investment in tourism and alternative energy can be speeded up,” he added.
In terms of the government’s finances, the veteran economist said “between April and June the fiscal deficit widened by $28 million to $204 million”.
“Fiscal consolidation remains a priority for Government, with the aim of reducing the deficit by 2 percentage points of GDP for financial year 2016/17,” he said. (SC)
