Exports up, further increase predicted

Barbados’ exports for the first three months of the year saw a double-digit increase when compared to the same period in 2021, and there is a prediction of an even bigger surge as efforts are ramped up to boost exports from small and medium-sized enterprises (SMEs).

Data from Export Barbados (BIDC) showed that certified exports were valued at US$41.9 million over the January 1 to March 25 period, an increase of 16.6 per cent over the same period last year.

This is the highest level attained since the impact of the COVID-19 pandemic and the second-highest level for the comparative period since 2016.

Chief Executive Officer of Export Barbados Mark Hill said he was confident that the double-digit growth will not only persist over the next year but will even reach triple-digit growth as the corporation spearheads the launch and deployment of several new initiatives over the coming months.

Hill said since April 2021, Exports Barbados has undergone a process of realignment geared at slowing down the decline in exports to bring the country to a positive growth trend.

“The adoption of an export focus by the corporation was essential if it was to guide our exporters towards achieving Government’s aim of earning and saving foreign exchange, particularly through the export of Barbadian goods and services,” he said.

The main drivers for the improvement were mining/concrete aggregate and soft drinks, neither of which was exported in the base year, 2020.

Exports from mining were valued at US$500 000 for the first three months in 2022, its first year of export. On the other hand, soft drinks recorded exports of US$400 000, growing by more than 6,300 per cent, compared to its value in the previous year. Other strong movers were in the agricultural sector, sugar, rum, rum products and confectionery.

Certified exports which fell by 3.6 per cent for the first three months of 2021, recovered in April-June where growth of 1.2 per cent was recorded, but struggled in July-September when they fell by 4.2 per cent.

However, the impact of new realignment initiatives began to bear fruit in the final quarter of the year, leading to growth in certified exports of 11.4 per cent for October to December, and one per cent overall for 2021.

The performance of certified exports for the first quarter of 2022 highlights the second consecutive quarter of growth and, according to Hill, is “the start of a consistent growth trend.”

He also noted the exceptional performance of small businesses for January to March 2022, explaining that companies in Tier 5 of the newly introduced five-tier system achieved growth of 293 per cent compared to the corresponding period of 2021, outstripping the performance of the companies in the other four tiers.

Tier 5, the CEO explained, are companies which recorded no more than US$150,000 in certified exports in 2020.

The growth in the small business sector is also significant since this group currently uses more foreign exchange than they earn, which contributes to a strain on the country’s foreign reserves.

Hill said building and sustaining an export culture was therefore critical to economic growth.

The Export Barbados executive said he expected the performance to continue to improve as the corporation launches the International Food Science Centre and the Export Bank in coming months – projects that are being fueled by the Barbados/Guyana St Barnabas Accord.

The International Food Science Centre is set to expand the production capacity of small businesses by giving them access to an internationally-accredited facility equipped with the testing laboratories needed to satisfy the most stringent international standards. In addition, the Export Bank will provide financial solutions to some of the perennial issues facing exporters.
(MM/PR)