BERT panel ‘concerned’ about path to recovery

 The committee that monitors the progress of Barbados’ home-grown austerity programme with the International Monetary Fund said Thursday Government may be facing an uphill task in achieving its targets. 

The Barbados Economic Recovery and Transformation (BERT) Monitoring Committee, which is made up of representatives from the private sector and labour unions as well as an independent creditors group representative, raised the concerns in its latest report. 

It said: “The continued severity of the impact of COVID-19 including the most recent spike and the resultant significant levels of unemployment, coupled with limited gross domestic product growth opportunities are the principal risks to the programme and the Committee remains concerned that, even with the lowering of the fiscal surplus target it will continue to be a significant challenge to meet the targets established. 

“Close monitoring and continuing collaboration and negotiation with the IMF must continue as the economic uncertainty remains high. It is critical that vaccination rates continue to increase so that businesses can continue to operate safely and provide employment opportunities for workers, and to ensure that the healthcare system does not become overwhelmed. 

“Remaining a safe jurisdiction in the eyes of our major tourism partners is a critical factor to the recovery of the economy and the reengagement of many laid-off employees.” 

Yet, despite the impact of the pandemic, coupled with the effects from the April volcanic ashfall, Government continued to achieve its targets, said the committee. 

“In particular, the primary balance of zero per cent of GDP and the growth in net international reserves to levels well above the programme target,” it said in the report which looks at the period up to June 30. (MM)