DLP: Growth welcomed but won’t trickle down to Bajans

Despite welcoming news of 4.4 per cent economic growth last year, the Democratic Labour Party (DLP) declared on Thursday the gain has not translated for average Barbadians.

“It’s the cost of living, stupid,” DLP leader Dr Ronnie Yearwood quipped during an online discussion on the Central Bank of Barbados’ 2023 review of the economy, invoking the 1992 comment, “It’s the economy, stupid” by American political strategist James Carville in President Bill Clinton’s successful election bid.

“While it’s good to see that the economy is projected to grow at four per cent, is that being felt by most Bajans? The reality is that inflation is hurting people and the cost of living is through the roof.”

Dr Yearwood said the growth has not trickled down for the average Barbadian who grapples with the rising cost of living.

“Saying the economy is growing by four per cent, yes, fine, we welcome that, good projections, really good going, but the question that we are left with [is], is that reaching down to the ordinary man and woman in Barbados? Does that affect their grocery bill when they go into Trimart, or when they go into Popular or Massy, or wherever they decide to go on and shop? Cost of living is through the roof and that four per cent growth is not rebounding to the people of this country.”

With the national debt now standing at $14.6 billion, Dr Yearwood said the Governor of the Central Bank Dr Kevin Greenidge is not taking the debt into sufficient consideration when discussing the growth numbers.

“The governor’s statistics and the governor’s approach [are] questionable, and there is nothing wrong with saying that. There seems to be some fudging because the reality is we are at this moment having some of the largest and the highest debt in terms of foreign debt, but the governor is trying to play that down in terms of moving the goalpost,” the DLP leader said.

He added that the Mia Mottley administration has borrowed more foreign debt than “any government of recent history” in Barbados, and at a higher level than any previous government.

“While prices soar, making government revenues and debt-to-GDP ratios look good, Bajans are more than smelling hell,” he said in the online forum.

In his review on Wednesday, Greenidge attributed the growth to tourism’s strong performance in its second year of recovery since the COVID-19 pandemic, aided by increased airlift capacity, intensified promotional initiatives in key source markets, high-profile cricket events, and the vibrant revival of the Crop Over Festival. He said the persistent growth in tourism spurred expansion in construction, wholesale and retail, and business and other services, highlighting the economy’s interconnectedness.

But Yearwood hit back that while the numbers have indeed increased since the height of the pandemic, the overall figures had not returned to pre-pandemic levels, even when compared to other Caribbean islands.

“We have to contend with our tourism numbers not being back up to 2019/2020 numbers,” he said. “So when we compare our tourism numbers to, say, the Saint Lucia, Jamaica and Grenadas of this world, we are still not near those levels, even though we are performing slightly better than we were last year.

“So this four per cent has to be put in context, and I think that is something that the governor needs to come clean with the people of Barbados and understand that you are now the governor of the Central Bank, you are no longer an advisor to the government.”

In Wednesday’s economic review, the governor blamed rising inflation over the last two years on domestic factors, including the impact of severe weather conditions on agriculture and high demand for dining out. 

“I guess he has abandoned his ‘inflation is imported’ mantra,” said Yearwood in a separate interview with Barbados TODAY. “Perhaps he needs to choose a struggle. Did the governor forget the 30 new taxes and the highest set of taxes in our history?

“The governor is playing with the figures to make the share of foreign debt look higher in 2017/18 than it is today. We know the foreign debt is over $5 billion – the highest and fastest accumulation of foreign debt in recent memory.”

Yearwood added: “The governor can continue to beg for more private sector investment and local investment in government bonds, but the low uptake is proof that the economy isn’t working as strong as the glossy presentation, manipulated figures and the government’s sleight of hand would suggest.

“Where is the development? If the economy was back, why is the QEH in such a mess? Where [are] the cancer machines? Why do we have more potholes than roles? Why are so many schools having environmental problems?”

The DLP president declared that a government under his party would differ from a Barbados Labour Party government by growing the economy through new service-driven sectors and fighting corruption. “We would also make sure Bajans benefit through developing the country and lowering [the] cost of living,” he said. “We would focus on the things that matter to the people, health, schools, roads and new jobs.” (SB/RG)