BCCI urges fiscal discipline, regional trade as IMF programme ends

The nation’s leading business group on Friday called for continued fiscal discipline, greater efficiency across sectors and stronger regional trade ties as the government prepares to exit its IMF-backed economic recovery programme next month.

And with increasing volatility linked to the escalating global trade war prompted by US President Donald Trump, the leader of the Barbados Chamber of Commerce and Industry (BCCI) has suggested the business community is eyeing increased trade within the Caribbean and Latin America.

Newly elected president Paul Inniss said the chamber was confident in the country’s current footing and praised the government’s decision to maintain access to the IMF through a precautionary standby arrangement after the current programme ends in June.

“It is clear to me that the government is of the view that they are in a position to look after our own interests. And I like the idea of the standby arrangement — where if the rainfall or it floods, we can actually have a partner to rely on. So I thought that that was a fantastic move and one that requires applause,” Inniss told Barbados TODAY.

Even as he expressed confidence in the country’s financial management, he warned that the public and private sectors must continue to sharpen how they manage limited resources.

“There’s always room [and] need for improvement in the business sector. We run and operate businesses that can always become more efficient, more effective, more responsible with how we use our limited resources. We expect the same from the government,” he said.

Inniss was responding to recent comments from Prime Minister Mia Mottley, who confirmed that the IMF-supported Barbados Economic Recovery and Transformation (BERT) programme will conclude next month.

She announced that Barbados is likely to enter into a precautionary standby arrangement with the fund, or what she called a “speed dial” agreement to allow for rapid access to emergency support should the country face future economic shocks.

“We have to continue to make Barbados fit for the third decade of the 21st century and beyond,” Mottley said.

“We have to become more nimble . . . we have to build skills.”

The government recently reached a staff-level agreement with the IMF for a final disbursement of about $114m, signalling the end of the BERT programme.

The business community further commented on the 2.7 per cent projected growth for the rest of this year, noting that the private sector is already feeling the momentum.

“We can actually feel and see the economic development and expansion of our economy. And we are partnering in that,” he said.

“We expect benefits — not only businesses will benefit, but we employ a significant number of people in Barbados. So we expect that more people will benefit, our communities will benefit. And at the end of the day, we think that the national gross domestic product will actually demonstrate the benefit to all of Barbados.”

He also said that the chamber’s members are looking on with “high expectation”, pointing to a visible uptick in economic activity.

“When you look at Barbados’ economy, you can sense, you can physically sense and see a robust economy where there’s dynamic activity and growth and development.”

Instead of considering the current global trade tensions and the potential impact of tariffs as a threat to this outlook, Inniss told reporters that the BCCI views it as a prompt for strategic reassessment and diversification.

“I tend to see it as an opportunity. It will present challenges, but challenges sometimes are good because it allows us to think differently and also think outside the box,” he said.

“Sometimes we become complacent, we become settled . . .and sometimes you don’t like change. I think this is a moment.”

He cited examples such as the region’s dependence on US ports — particularly Miami and Florida — for the importation of fresh produce.

The chamber, he revealed, is actively exploring direct trade relationships with countries in Latin America.

Inniss said: “We’ve had discussions around, for example, our fresh fruits. And a lot of our fruits come through Florida, out of Florida. But Florida also gets those fruits and a lot of those items from Latin [and] South America. Why couldn’t we go directly to source . . . not just for Barbados, but how can we work together as CARICOM?”

He confirmed that the chamber has engaged members around the upcoming trade mission to Brazil, an initiative led by the prime minister, and is participating in wider regional discussions through the CARICOM Private Sector Organisation (CPSO).

“We, the chamber, have been participating in several discussions and engagement at CARICOM’s level,” he said. “So, we are working through the CPSO . . . . This is one of the good things that I hope will come out of our current circumstances — the ability to collaborate and partner regionally as opposed to trying to go at it individually.” (shannamoore@barbadostoday.bb)