Central Bank expanding data collection on small business sector

by Marlon Madden

The Central Bank of Barbados is in the process of expanding its data collection to include more information on the micro and small business sector in an effort to better gauge that sector’s contribution to the economy.

During the height of the pandemic unemployment skyrocketed to an estimated 17.9 per cent by the end of September 2020, and was followed by a noticeable gradual increase in the number of new entrepreneurs.

Presenting his report on the economy for the January to March 2022 period, Governor of the Central Bank of Barbados Cleviston Haynes was not immediately able to say what changes were experienced in the small business sector.

However, he agreed there was need for more statistics on the sector, given its importance to the economy.

“One of the things we are trying to do within the [Central] Bank is to improve some of the data sets that we have, and data surrounding small businesses in particular is one of the areas in which we are trying to focus,” said Haynes.

“I can’t promise you next quarter, but hopefully going forward we will be able to provide that type of information . . . I think it is important that we understand what is happening to small businesses – how they hire, what’s their employment, what sorts of incomes they are generating, and in some cases, what sort of job is going to be lost like when you go through the pandemic, and their access to credit.  So, there are a number of dimensions of the small business sector which we have identified.

There is a lagoon of information on it and we want to be able to fill that going forward,” he said. Reporting on some sectors during his economic review, Haynes indicated that early data showed an overall agriculture production increase of almost 3 per cent in the first quarter of this year, when compared to the same period last year.

“Non-sugar agriculture output increased by 4.8 per cent, primarily because of improved food crop production. In addition, milk production rose as new herd additions entered into their second lactation period. However, meat production declined and fish landings were adversely impacted by the resurgence of sargassum seaweed across the Eastern Caribbean,” said Haynes.

Non-sugar agriculture is estimated to have generated some $25.5 million in economic activity during the period due to the increased output. This contribution is up from the estimated $24.3 million for the corresponding period last year.

“Manufacturing output increased by 5.4 per cent in the first quarter, reflecting the boost in domestic demand created by the relaxation of COVID-19 health protocols, the impact of improved tourism on demand for locally produced beverages, and the partial recovery of exports. Food and beverages provided the greatest impetus, but there was also strong growth in construction materials, particularly for cement for the recovering construction sector,” he said.

As a result of the increased output, the manufacturing sector is estimated to have contributed $122 million to the economy at the end of the January to March 2022 period, compared to $115.7 million during the same period last year.

Haynes also reported that the non-traded sector activity increased by 3.5 per cent during the first quarter of 2022, against a backdrop of heightened construction activity and gains in output in other sectors, particularly the wholesale and retail and business and other services sectors.

With the 3.5 per cent increase in activity, the contribution of the non-traded sector was estimated at $1.61 billion at the end of the quarter, compared to $1.55 billion at the end of the corresponding period last year.

marlonmadden@barbadostoday.bb