Barbados’ economy is not all doom and gloom as political pundits are making it seem.
On Monday, March 18, Prime Minister Mia Amor Mottley opened her Budgetary Speech by answering the question on everyone’s mind—will there be more taxes? She vehemently said no but indicated adjustments were on the horizon.
“There will be no new taxes. But I am telling you upfront, and I will warn you that there will be adjustments during this year of a few rates that we will need the public to be able to bear if those services that depend on those rates are to keep up with the kind of service that Barbadians want,” she said.
Addressing criticisms of the Government’s borrowing, Mottley, who is also the Minister of Finance and Economic Affairs, assured that the national debt has not reached “unmanageable levels.” “Barbados’ debt is not galloping out of control, and the debt-to-GDP [Gross Domestic Product] ratio is not precarious.”
“This Barbados Labour Party has not increased the national debt to unmanageable levels. In fact, the national debt is now lower than when we came to office in 2018.”
The Barbadian Prime Minister disclosed that the Government intends to reduce the national debt to 60 per cent by 2035. As of February 2024, the national debt to GDP stood at 114.6 per cent, a stark contrast to the 178.9 per cent when her Barbados Labour Party (BLP) administration assumed office in 2018.
She explained that the country experienced 23 downgrades under Frunedel Stuart’s leadership. However, the economy has experienced 11 consecutive quarters of growth and is expected to grow by four per cent this year.
“After years of downgrades, this economy is now growing. . . . Despite the challenges, we have had 11 consecutive quarters of growth, and we will see the 12th one by the end of this month,” Mottley remarked.
Additionally, unemployment has declined to eight percent.
Prime Minister reiterated that the country’s economic outlook for 2024 remains “optimistic” after a trying two years. She shared that reserves are higher at $ 3.2 billion and over 33 weeks of import cover.
“When you listen to some people in this country, you will believe that we are presiding over a graveyard, but we have come here today to let you know that Barbados is moving upward and onward.”
