Central Bank uses data to ‘tell the story’

Every quarter, the Central Bank of Barbados publishes a review of Barbados’ economy so far for the year and provides an outlook for the coming months. To produce this and other publications, as well as in its broader work guiding economic policy and promoting financial stability, the Bank relies on data.

What data are used for

“Data tell the story,” says Natalia Morgan, Statistical Officer in the Bank’s Research and Economic Analysis Department.

“It tells a story of past, present, and future. Our economists are able to use the information to generate economic policy as well as to forecast… This information is then fed into our public releases and we’re also able to use this information for the IMF (International Monetary Fund) visits, and to set policies,” she added.

Where it comes from

While data is critical to many of the Bank’s functions, the organisation does not generate much of the data it uses. Rather, it compiles it from different sources, chief among them the Barbados Statistical Service (BSS), from which the Bank receives figures related to employment, prices, inflation, and GDP (Gross Domestic Product).

Because of the importance of tourism to the economy, the Bank also captures detailed information from the Barbados Tourism Marketing Inc including how many tourists come to the island, how much money they spend, how they’re spending the money, how long they stay… which market is doing better.

It also uses data from the financial and other sectors to gain a thorough understanding of what is happening in the economy.

Depending on the nature of the data, it can be collected on a daily, weekly, monthly, or annual basis, and the Bank makes much of it available to the public through its website.

“You can find information such as the unemployment rate, the inflation rate, and lending to any particular sector, such as agriculture and construction. We even have deposits,” said Morgan.

That information is available in downloadable format through the Bank’s CBBWEBSTATS portal.

How the Central Bank is addressing data challenges

Given how critical data are to the Bank’s work, it is important that the statistics it uses are both accurate and received in a timely manner. However, Morgan reveals that this can be a challenge.

The new Central Bank of Barbados Act, which was passed in December 2020, seeks to address this issue. “Any institution or organisation who does not fulfil its mandate of supplying the information to the Bank, can be fined $10,000,” she said. The same also applies to entities that provide false information.

These penalties are a recognition of the importance of the Bank having the information it needs to help manage the economy and promote financial stability, which in turn benefits all Barbadians. (PR)