Politics
Mia Mottley says Barbadians must brace for more economic woes following Moody’s downgrade
In terms of the widening government deficit, Moody’s explained that the situation was driven by lower-than-expected revenues, linked to last year’s slight economic contraction. Moody’s stated, “Despite the authorities’ recent efforts, expenditures remain high and rigid, particularly the public sector wage bill and transfers to loss-making public enterprises, and interest payments have increased significantly.”
Moody’s also said, “The government announced several fiscal adjustment measures, including widespread public sector layoffs, but we think the authorities will be challenged to meet a deficit target of 6-7 percent of GDP in the running (fiscal year), given Moody’s projection of a GDP contraction of around one per cent this year.”
Mottley said that the downgrade comes against increasing difficulties by the Freundel Stuart government to raise medium term money and challenges with a recent 2019 Issue of bonds. She described the situation as regrettable, noting it was a case of the market “reflecting their lack of confidence in this government’s management of the economy and its fourth attempt at fiscal consolidation”.
She also stated, “How many more people and institutions must speak, through their words and actions, before Barbadians tell this Government that the message is clear from everyone who assesses our economy? How many more Barbadian workers, families and businesses must be sacrificed before we recognize that all Barbadians must stand up and call a spade a spade.”
“The definition of madness is doing the same thing over and over and expecting a different result,” Mottley said adding, “our economy is in crisis and no one has confidence in this government’s policies nor in its ability to lead us out of the crisis.” She then concluded, “The deafening silence of Barbadians is the greatest ally to this Government’s incompetence. The voices of all Barbadian patriots in the private sector, union movement, academia, church, civil society and among our general population must now be heard for it cannot be business as usual.”
Source: Caribbean360
