Central Bank’s answer
THE CENTRAL BANK has put its finger on why the island’s foreign reserves slumped so dramatically last year, causing economic planners to tighten the grip on Barbadians’ spending in order to protect the currency.
Governor Dr DeLisle Worrell, in his review of the Barbados economy for last year, revealed that private investment which helped the country during its toughest periods began to dissipate last year in a sudden and striking fashion.
“A slump in private foreign investment inflows was the major reason behind the decline in foreign reserves in 2013. Reserves declined by $301 million and net foreign capital inflows were $188 million lower, at about $499 million,” the country’s lead economic advisor explained.
The news came as Worrell reported that the economy failed again to grow and contracted last year by 0.2 per cent on the back of a drop in tourism earnings and a 12 per cent fall in construction.