
Acting Central Bank Governor, Cleviston Haynes (right) makes a point while Director of Research & Economic Analysis Department (READ) Michelle Doyle Lowe, looks on during a press conference to review the first quarter of 2017 yesterday.
THE Barbados economy has maintained its growth trajectory, expanding by two per cent in the first quarter of this year.
In addition, there was a halt to the slide in the country’s foreign reserves, which inched back to just over $700 million after their fall towards the end of last year.
At his first news conference since being named as the Bank’s Acting Governor, Cleviston Haynes told a news conference yesterday, also the first in recent times, that the two per cent growth is above the average first-quarter performance of the last five years.
He said that Tourism, Construction and other traded sectors made modest contribution to that growth. It was similar to the two per cent realised a year ago.
Real Tourism value added was up three per cent on the back of a strong performance during the corresponding quarter the previous year. Haynes said that the international reserves stood at $705.4 million, following an increase of $24.3 million during the first quarter.
“Long stay arrivals were up 4.4 per cent on the strength of increased demand and the ongoing expansion of airlift from the USA and the Canadian markets,” said Haynes who was accompanied at the news conference by Ms. Michelle Doyle-Lowe, Director of Research and Economic Analysis; and Ms. Novaline Brewster, Public Affairs Officer. Arrivals from the UK were down 1.6 per cent, in the aftermath of the Brexit referendum. “On average, visitors’ length of staty is estimated to have decreased relative to the same period last year,” he told the media while also stating that cruise passenger arrivals rose by approximately nine per cent during the quarter.
Construction activity was higher by two per cent on account of the various commercial projects including Sandals Royal. Wholesale and Retail, other Business and General services, also contributed to the growth performance.
The average unemployment rate up to September last year was 9.9 per cent while inflation which is trending upwards, stood at 1.3 per cent, at the end of December.
The reserves, which were $705.4 million, represent 10.7 weeks of imports which the Acting Governor said they remained below the 12-week benchmark, in part a reflection of the larger than usual net public sector capital outflows in 2016/2017. (JB)