More private sector job losses and business closures are in the offing, says economist Ryan Straughn.
He said this was a distinct possibility given that the economic environment in Barbados today was not conducive to doing business. This, he explained, could be seen in how established businesses had been struggling to remain viable, far less achieving profitability.
Straughn addressed the issue yesterday in the face of persistent statements from Government ministers, in particular, that the private sector was not doing enough to help the country out of the prolonged economic slump.
The business consultant and past president of the Barbados Economic Society said the clearest indication of the trading environment businesses here had been operating under was the decline in corporate taxes collected over the past six consecutive years.
“What is particularly alarming is that the absolute level for the fiscal year 2013/2014 is approximately 60 per cent less than in 2006/2007. Therefore, unless one is enticed by significant concessions and other tax incentives, it would be difficult for any new entrant to enter the Barbados market space and invest significant capital when existing businesses are experiencing significantly less profits than in previous periods,” he noted.
