Economic growth not ‘earth-shattering’ – Atherley

Despite Barbados’ economy growing by almost 12 per cent, Leader of the Alliance Party for Progress (APP) Bishop Joseph Atherley is concerned that there has been little to no diversification.

He has cautioned that if Government continues to rely heavily on tourism it could have a detrimental impact on the island’s economy in the long run.

Delivering his first quarterly review of the economy for 2022 on Wednesday, Central Bank Governor Cleviston Haynes announced that the country’s economy had grown by 11.6 per cent for the first three months and was on track to end the year with double digit growth.

Haynes said the growth was mainly due to a strong performance in the tourism sector.

However, speaking to Barbados TODAY Atherley said the revelation was not earth-shattering.

“I don’t think there was anything in the Central Bank report that was surprising. The world economy has been on the upward swing in recent months with the easing off of the COVID pressures on the global market and therefore we have seen, like the Central Bank Governor said, increased traffic coming into Barbados and with our relaxation of the COVID protocols and so forth you’ve seen more activity and economic spinoffs will come from that to the extent that we can forecast growth in Barbados for the economy,” Atherley said.

“It is not suggestive that we have necessarily done anything which has been earth-shattering. Let’s not forget that we are still climbing out of a hole and if you’re down in a hole 30 feet and you improve your elevation by 10 feet you’re still 20 feet below where you want to be and that is the situation with Barbados’ economy.

“We have a situation where we’re not seeing that significant movement in respect to other critical areas of growth. We’re still posturing on renewable energy in my view, we’re still paying lip service to manufacturing and not diversifying the products we can manufacture in Barbados and find niche markets around the region and beyond.”

Atherley also said the ongoing war in the Ukraine was a threat to Barbados’ economy.

He said the increases in fuel and food prices were worrisome developments that had to be carefully monitored.

“The increases that will emanate from the European situation will impact fuel and food and financial services, freight costs and stuff like that, the supply change issues. I’m saying that we have a situation where we’re talking about growth from a hole, we’re coming up 10 feet out of 30 feet so we still have another 20 feet to go and we have as a countervailing force– the fallout from the Ukraine situation and its impact…so that is a recipe for a drag on Barbados’ economy.

“Government needs to be nimble and navigate the hurdles that we are up against and I don’t think necessarily that we are seeing sufficient evidence that the Government has been doing that,” Atherley said. randybennett@barbadostoday.bb