Barbados economy showing signs of steady growth
Thursday March 24 2011 | 03:56 AM

THE Barbados economy appears to be on the projected growth path, with improvements in both tourism and international business.

Minister of State in the Prime Minister’s Office, Senator Darcy Boyce said so in the Senate yesterday, at the same time he revealed that at least $250 million in spending on projects will be undertaken in the coming financial year.

Participating in the debate on the Estimates in that Chamber, Senator Boyce said that the economy had registered a small growth rate in 2010.

Saying that government anticipates more growth, Senator Boyce told the sitting that the tourism numbers were up during the first two months of the year and that there is some spending taking place. In fact, he said that based on what they have seen in tourism and in international business and the new products in real estate, there will be growth.

According to him, “We expect the international business sector will hold its own...It has had a hard time, since the capital to fund new business companies have been slow.”

The Minister stated that the companies had not realised the profits they normally would have made and that this has affected the level of taxes those companies pay into Barbados. However, the number of international business entities expanded in 2010 when compared to the previous year.

“I feel confident we can meet those growth targets we put in our plans and also to bring down the deficit,” he said in his presentation.

The Government Senator remarked that work in housing will be picking up, noting that contracts were awarded for some projects.

He pointed out that between $80 million and $100 million will be spent in that sector and that this is money not reflected in the Estimates of Revenue and Expenditure, but will add to the growth rate.

In any case, the Minister said, this will create more activity, in addition to the $75 million Caribbean Examination Council (CXC) project that, again, will not be shown in the Estimates, but will contribute to job creation.

“We also approved the guarantee for funding of a development at the Lloyd Erskine Sandiford Centre for $25 million,” he said while also pointing to projects being undertaken by the Barbados Water Authority (BWA) worth $50 million and the $25 million to $30 million being done by the Sanitation service Authority at Vaucluse.

“So, quite apart from capital expenditure in these Estimates, we are probably talking about $250 million in work that will continue during the coming year to keep growth going,” said Senator Boyce.