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More hard times

More hard times (Internet photo)

By GERALYN EDWARD Business Editor | Sat, October 13, 2012 - 12:08 AM

The International Monetary Fund (IMF) is painting a picture of more economic uncertainty for Caribbean economies for the rest of this year and next year, with tourism dependent nations like Barbados expected to be hardest hit.

In its Regional Economic Update For Latin America And The Caribbean, released in Washington yesterday morning, the IMF lamented: “Growth in the Latin America and Caribbean (LAC) region has softened since our April report, reflecting the larger than anticipated impact of earlier policy tightening and the somewhat less favourable external environment.”

With growth in the LAC’s largest economy – Brazil – slowing, the IMF urged that “policies need to be carefully calibrated to keep domestic demand and credit growth in check”.

The IMF’s most significant warning, however, was reserved for the Caribbean where it said the challenges ahead were “more pressing” and “where the recovery has been held back by weak balance sheets” and reduced “external demand” for the region’s products and services.

 

Please read the full story in today’s SATURDAY SUN, or in the eNATION edition.

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Posted by Carl Harper 1 year, 9 months ago
How much more bad news can Barbados take?

From as far back as 2011, Moody's slapped our economy with a downgrade, one notch above junk bond status (another report is due any day, now).

A few months ago Standard & Poor's handed us our first ever downgrade to junk.

Only last week the IADB expressed concern about what average Barbadians already know - the country's fiscal situation has worsened. 

The Unions are huddling in a corner and have taken a "conciliatory position" in the collective bargaining process in an effort to save jobs.

Government itself is borrowing $40 million monthly from the NIS to pay wages and salaries, and is also asking the IADB for $66 million loan to shore up its finances.

Even the loan from the IADB for the Four Seasons project cannot be dispersed because Government has failed to meet stipulated conditions to resume construction.

Now the IMF in the face of Government's reluctance to let them come in and conduct an objective evaluation of our economy before year-end, is painting a picture of doom and gloom throughout next year.

Yet I am hearing prognosis of a positive and optimistic outlook from the mouths of DLP politicians and the Central Bank governor, based on a flawed Medium-Term Fiscal Strategy.

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Posted by daneale o'neale 1 year, 9 months ago
same old story from imf.when will their learn

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