Construction set to lead economic activity in Barbados
Published by www.jamaicaobserver.com on Aug 18, 2006
Aug 18, 2006

THE construction sector should again lead economic activity in Barbados in the coming months, though Central Bank economists say a stronger showing should come from some of the foreign-exchange earning sectors.

As preparations for Cricket World Cup intensify, the bank also expected higher levels of output in the wholesale and retail trade, transportation, storage, communication and other services which should "accompany buoyant construction activity".

In her recent half-year review of the economy, Governor Dr Marion Williams said the 4.0 to 4.5 per cent growth in the latter half of this year should come mainly on the back of expansion in the non-traded sectors.

However, she noted, "A pick-up in traded-sector activity is projected for 2006 on the strength of a turnaround in real tourism value-added and continued recovery in the manufacturing sector."

Furthermore, the Central Bank governor said that in line with a "fairly healthy outcome forecasted for real economic activity", the average unemployment rate should stay in single digits during 2006.

The country's leading economist also suggested that inflation in the latter half of the year should be around the level recorded at the end of 2005 - around 6.1 per cent.

She added: "The capital and financial account is likely to register a larger surplus during the year, mainly attributed to higher long-term, private-sector inflows and anticipated foreign borrowing by government. These capital-account inflows should stem the reduction in the net international reserves to approximately Bds$95 million for the year, in spite of the substantial loss in the second quarter."

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