Central Bank governor defends economic growth impact as public concerns persist

Central Bank Governor Dr Kevin Greenidge has pushed back against the perception that the country’s economic growth has not benefited ordinary Barbadians, arguing that signs of improvement are evident across the country.

During Wednesday’s press conference hosted by the bank to review the country’s economic performance for the first quarter, Dr Greenidge addressed whether the reported growth was being felt by the public, saying it would be “almost impossible” for Barbados to have recorded 15 straight quarters of economic expansion without the effects reaching households.

The Central Bank’s latest review reports that the economy grew by 2.6 per cent between January and March 2015, slightly surpassing expectations.

This, according to the governor, marked the 15th consecutive quarter of economic growth driven largely by record cruise tourism, a rebound in construction and continued momentum in business and professional services.

Dr Greenidge has also described the revised full-year growth forecast, which fell from 3.0 per cent to 2.7 per cent, as realistic given the country’s strong bookings, full event calendar and investment climate, maintaining that ordinary Barbadians will eventually feel the real impact of the reported improvements in the economy.

“Growth, inclusive growth, development is a process,” he said. “What I’ve seen based on being on the ground, moving around, is that it’s happening.”

Dr Greenidge cited expanded social programmes and visible construction activity – including home additions and property upgrades – as signs that Barbadians are spending more and improving their living conditions.

“You see an event in Barbados not supported [or] bursting at the seams? That’s due to the fact that people, though it may not appear so, have more disposable income.”

His comments came amid ongoing public concern over stagnant wages and the rising cost of living.

Dr Greenidge acknowledged the gap between economic indicators and public perception, but insisted the country is moving in the right direction, maintaining that “fundamentals are strong.”

“We’re getting there,” he said. “It may not appear so immediately, but the benefits of growth are trickling down.”

(SM)