Businessuite - Special Monthly Edition o DOING BUSINESS IN THE CARIBBEAN
The Caribbean Region
Weaknesses Reflected In Many Of The Critical Economic Areas
T
he Barbados economy continued to experience challenges during 2014 with weaknesses reflected in many of the critical economic areas. By the end of the year the economy experienced growth (estimated at 0.2%) for the first time since 2011 driven by 1% improved performance in tourism and construction activity. Foreign exchange reserves stabilized at the end of December to a stock of US$526.0M, representing 14.7 weeks of import cover. The Central Bank of Barbados expressed confidence that the threat to the Barbadian dollar’s peg to the US dollar of BDS$2: USD$1 no longer exists. The unemployment rate increased to 12.7% following government’s retrenchment program, and inflation averaged 1.9% at the end of December 2014. Tourism value-added is estimated to have increased by 1%, reversing the downward trend witnessed over the last three years.
By Sarah MacDonald
Executive Chairman Emera (Caribbean) Incorporated (EC)
o DOING BUSINESS IN THE CARIBBEAN
Long-stay arrivals rose by 1%, and visitors stayed slightly longer than in 2013. Increased airlift out of the UK contributed to growth in arrivals of 10%, but arrivals were down from the US and Canada by 3% and 4% respectively. Arrivals from Trinidad and other CARICOM markets contracted by 12 % and 9% respectively.
The Caribbean Region Caribbean Economies Plagued With High Unemployment High Debt Burdens And Challenging Fiscal Adjustment Programmes
D
espite some signs of improvement, the Caribbean economies continue to be plagued with high unemployment rates, high debt burdens and challenging fiscal adjustment programmes. In some of the tourism-dependent economies there has been some marginal recovery in stay-over arrivals. According to the Caribbean Tourism Organization, increases have been seen in Grenada (18.6%), Cayman Islands (9.4%), Saint Lucia (6.0%) and Jamaica (1.6%), with Barbados, Saint Vincent and the Grenadines and Saint Kitts and Nevis all showing declines.
By Mr. A. Charles Herbert Chairman Goddard Enterprises
The Caribbean region overall has experienced slight growth which should help provide some relief to these economies. However, the Caribbean debt crisis and minimal growth in foreign exchange inflows continue to constrict the overall regional economic performance. The Economic Commission of Latin America and the Caribbean has had to revise its 2014 growth rate estimate for the region downward from 2.7% to 2.2%.
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