Barbados to experience very modest growth in 2013

Barbados is forecasting less than one percent real economic growth for 2013 up from “no real growth” in 2012.

The Central Bank of Barbados said that the 0.7 percent forecast for this year is based on the most recent forecast by the International Monetary Fund (IMF) of average growth of 1.7 per cent for the United States, the United Kingdom and Canada, the island-nation’s major trading partners.

In a review of the Barbados economic performance for 2012 and prospects for 2013, the Central Bank said that the projections were also based on an improvement in consumer expenditure in these markets of 1.2 percent.

“In addition, private capital inflows of BDS$600 million (US$300 million) are anticipated for activity in the tourism and construction sectors. No significant gain in employment is expected.

“Based on current trends in international commodity prices for food, and the IMF’s projection for fuel, domestic inflation could fall to the region of five percent for 2013,” the Central Bank said. -(CMC)