Latest figures reveal that Barbados economy contracted in first half of 2013

The economy of Barbados contracted during the first six months of the year with the main foreign exchange sectors also suffering a decline, according to the latest figures released by the country’s central bank – the Bank of Barbados, on Tuesday.

The Bank of Barbados said that the local economy grew by just 0.6 percent and among the priorities for the future will be to reduce spending “in the economy so as to balance the inflows and outflows of foreign exchange and also to revive economic growth led by tourism, international business, agro processing and alternative energy”.

The Bank of Barbados revealed that the first half of 2013 saw a contraction in the main foreign exchange earners, namely tourism and international business and financial services.

“At the same time, private foreign capital inflows were less than a quarter of the figure recorded in the same period last year – foreign exchange levels were relatively unchanged for most of the first three months, but weakened considerably during the second quarter”.

The central bank said as a result, the foreign reserve cover fell from 19 weeks of imports as at March to 16 weeks at the end of June.

“Overall economic growth is estimated to have contracted by 0.6 percent in the first half, inflation rate is estimated at 2.7 percent to June and the rate of unemployment was 11.5 percent at end-March,” the Bank of Barbados added. -(CMC)