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Barbados 2018-2019 Economic Review

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OVERVIEW

In 2018 Barbados strengthened its reform impetus to start addressing its precarious balance of payments and fiscal situations. In response to the worsening fiscal and external liquidity position, the Government of Barbados (GOBD) announced in June the Barbados Economic Recovery and Transformation Plan (BERT), which aims to restore macroeconomic stability and place the economy on a path of strong, sustainable

and inclusive growth, while safeguarding the financial and social sectors. Included in BERT was the suspension of payments due on debt owed to external commercial creditors and a comprehensive domestic and external debt restructuring.

Fiscal austerity measures related to BERT and the challenging macroeconomic situation negatively impacted the non-traded sectors.

These effects more than offset modest gains in tourism and led to economic contraction of 0.6% in 2018. Inflation fell, but remains above its long-term trend, while public sector layoffs may have contributed to rising unemployment in the fourth quarter (Q4) of the year.

The public finance outturn improved due to deeper fiscal austerity measures, and contributed to a decline in public debt.

Gross international reserves returned to the international benchmark of three months of import cover.

KEY DEVELOPMENTS IN 2018

Real gross domestic product (GDP) contracted by an estimated 0.6% in 2018, (see Chart 1). Despite modest gains in the tourism sector (where activity grew by 0.6%), the decline in overall GDP was due to a 7.0%

fall in construction output and declines in other non-traded sectors such as distribution; business and services; transportation; storage; and communication.

The number of overnight arrivals was 2.8% higher than in 2017, due to increased marketing and additional airlift. However, growth in tourism was constrained by reduced length of stay as more visitors arrived from the United States and Canadian markets compared with the longer-staying visitors from the United

Kingdom (UK). This may be due in part to slower economic growth in the UK and a weaker Pound sterling. Cruise ship passenger arrivals were down, as the number of ship visits fell by almost 10.0%, after the re-routing of vessels in 2017, related to the impact of Hurricanes Irma and Maria.

Fiscal austerity measures related to BERT and concerns about the challenging macroeconomic situation adversely impacted the performance of the non-traded sectors.

Large-scale public and private sector projects were delayed, and the public sector layoffs in the final quarter of 2018 impacted domestic consumption with negative pass-through effects to the rest of the economy.

Inflation pressures eased in the second half of the year. Inflation declined to 3.7% from 4.5% in 2017. These are higher price increases than the trend in previous years, and are mainly due to the impact of the National Social Responsibility Levy (NSRL) and higher international crude oil prices. The removal of NSRL in July 2018, and the softening in international crude oil prices in Q4, both helped to reduce the domestic inflation rate.

The average unemployment rate fell to 9.2% for the four quarters ending September 2018. However, public sector layoffs in Q4 may have contributed to a higher unemployment rate in December 2018.

The fiscal outturn improved as a result of deeper austerity. The primary balance strengthened to 3.4% of GDP for the nine-month period to December 2018, above both the targeted primary balance of 3.3% for

Fiscal Year (FY) 2018/196 and 3.1% in the previous FY. The fiscal austerity programme was underpinned by lower interest payments associated with the sovereign debt restructuring and reduced transfers and subsidies, particularly to state-owned enterprises (SOEs). Broad-based reforms8 to SOEs are underway, on a phased basis, to streamline their operations.

On the revenue side, increased collections (due mainly to a boost in corporate tax receipts9) also contributed to better fiscal performance. New taxes10 were introduced to widen the tax base and the NSRL was removed. Corporate tax rates were also revised as a result of the Organisation for Economic Cooperation and Development’s Base Erosion and Profit Shifting initiative. The improved fiscal performance contributed to the public sector debt declining to 126.9% of GDP at the end of December, from 148.4% in March. BERT targets a public sector debt to-GDP ratio of 100% by FY 2022/23 and 60% by FY 2033/34.

Commercial banks continued to be characterised by high levels of excess liquidity. The excess cash reserve ratios of commercial banks increased to 16.2% as at December 2018 from 14.1% in the same period in 2017. In the same period, credit to the private sector increased by $227.1 million to $5.8 billion. Meanwhile, the ratio of non-˗performing loans to total loans increased slightly to 11.2% at the end of 2018, from 7.9% at the end of 2017. The reported capital adequacy ratio declined slightly to 15.6%, having been 17% one year before.

The Central Bank of Barbados (CBB) eased its monetary policy stance by lowering the reserve requirement. Improvements in the government fiscal position in 2018 prompted CBB to ease its monetary policy stance. This was a reversal of the December 2017 phased increased in the Barbados dollar securities reserve requirement ratio, which had been intended to provide liquidity support to GOBD. CBB reduced the securities reserve requirements ratio for commercial banks from 20% to 17.5%, effective November 2018.

The debt restructuring came in the immediate aftermath of the adoption of the new accounting standards ‒ International Financial Reporting Standard (IFRS) 9 ‒ with implications for the balance sheets of institutions that held government securities. In particular, IFRS9 requires financial institutions to make loss provisions against all exposures with inherent credit risk, rather than against only those assets that have actually defaulted.

These implications have been reduced somewhat following recent improvement in the country’s credit rating.

Gross international reserves were boosted with the support of international financial institutions. These reserves, which reached a low of 5-6 weeks of import coverage at end of May 2018, more than doubled to 3.4 months as at December 2018).

Accumulation of international reserves was helped, in part, by external financing from the Caribbean Development Bank (CDB), the International Monetary Fund, and the Inter-American Development Bank.

Barbados received its first domestic credit rating upgrade in several years. Standard & Poor’s (S&P) raised its long and short-term local currency sovereign credit ratings on Barbados to ‘B-/B’ from ‘SD/SD’ (selective default) in November 2018. S&P also affirmed its ‘SD/SD’ long and short-term foreign currency credit ratings on the island, and its ‘D’ (default) ratings on Barbados’ foreign-currency issues. The foreign currency rating will remain at Selective Default until Barbados resolves its foreign debt restructuring.

OUTLOOK

CDB expects real GDP growth to be flat in 2019. Economic activity is premised on favorable tourism performance due to growth in major tourism source markets, the opening of Ross University School of Medicine (RUSM), and an anticipated expansion of airlift. The influx of medical students associated with

RUSM may also positively impact other industries such as distribution and transport. This will more than offset the expected drag on economic activity related to the commencement of the next phase11 of BERT and the continuation of fiscal austerity measures.

There is notable upside risk to the forecast depending on the timing of planned private sector projects and possibly higher external demand for financial services as investor confidence strengthens. If the planned private sector projects materialise in the first half of 2019, growth is likely to be positive. On the downside, tensions in the United States of America and Europe (BREXIT) could dampen growth prospects. Also, the Barbados economy remains vulnerable to changes in the price of international commodities and the adverse impacts of climate change and sea level rise. The negotiation of the external debt restructuring is also important for external financing flows.

Source: Regional Economic Summary 2018 Caribbean Development Bank

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Businessuite News24

Corporate Movements May 2025

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Unilever Caribbean Limited [UCL] is pleased to announce the appointment of Ms. Ginelle Lambie as the Managing Director effective May 14, 2025. Ms. Lambie joined UCL in April 2023 in the role of National Finance Manager. On January 1, 2024 she was appointed as an Executive Director and the Acting Managing Director. Ginelle holds a Bachelor in Business Administration, a Master of Science in Accountancy and is a Certified Public Accountant. She brings over 20 years of experience in FMCG, Manufacturing, Telecom, Media & Entertainment and Banking in the United States and Trinidad. She has over 11 years’ experience in Business Analysis and Financial Reporting in FMCG companies.

Unilever Caribbean Limited [UCL] is pleased to announce the appointment of Mr. Amit Rampersad as the National Finance Manager effective May 14, 2025. Mr. Rampersad has been with Unilever for over 11 years and was appointed the Acting National Finance Manager on January 1, 2024. Mr. Rampersad is a Fellow of the Association of Chartered Certified Accountants [FCCA] and a member of the Institute of Chartered Accountants of Trinidad and Tobago [ICATT]. He has over 17 years of Financial Accounting experience, having worked in various sectors, including Media, Manufacturing, and the Public Sector.

The Board of Directors of VM Investments Limited (VMIL) is pleased to announce the appointments of Mrs Maria Evelyn-Robinson and Mr Frederick Williams as Directors of VMIL. • Mrs Maria Evelyn-Robinson was appointed effective February 12, 2025. • Mr Frederick Williams was appointed effective March 24, 2025. The Board welcomes Mrs Evelyn-Robinson and Mr Williams and is confident that their expertise, leadership, and professional experience will be valuable assets to VMIL as the organisation continues to execute its strategic objectives and strengthen its governance framework.

Everything Fresh Limited wishes to advise that Mr. Errol Grant has been appointed the Group Chief Financial Officer for the company effective May 12, 2025.

Guardian Holdings Limited (“GHL”) advises that at the Company’s Annual General Meeting held on 12th May, 2025, Ms. Colette Delaney was elected a director of the Company. Ms. Delaney brings over 40 years of distinguished leadership experience across the United Kingdom, the United States, Canada and the Caribbean in retail, commercial, and corporate banking as well as insurance, which will play a pivotal role in advancing the Company’s strategic goals.

Scotia Group Jamaica Limited (SGJ) advise of the appointment of Dayne Bucknor as Director, Client Experience and Advocacy, Scotia Group Jamaica Limited, effective May 1, 2025. Mr. Bucknor has over 17 years’ experience in the banking Industry and is adept at leading outstanding and diverse teams. He joined Scotiabank in 2006 and his most recent position was Director, Strategic and Business Analytics, Caribbean North & Central. In that role he provided strategic direction and support on several initiatives across the region. As Director, Client Experience and Advocacy for Scotia Group Jamaica, Mr. Bucknor will have responsibility for the development and implementation of comprehensive client-focused strategies to achieve and maintain industry leadership in client experience in the Caribbean North and Central region. Mr. Bucknor is a St. George’s College alumnus and holds a Bachelor of Science degree in Electrical Engineering and a Masters in International Business from Florida International University.

Barita Investments Limited (“Barita) has advised of the following Senior Management changes:

Miss Fayola Wray has been appointed to the position of Vice President, Finance, effective April 14, 2025.
Mrs. Sara Ying Henriques has been promoted to the position of Senior Vice President, Operations, effective May 1, 2024. Mrs. Ying Henriques previously held the post of Vice President, Operations.
Mr. Richardo Williams has been promoted to the position of Vice President, Asset Management & Research, effective April 1, 2024. Mr. Williams previously held the post of Head of Financial Risk.
Mrs. Anmarie Walker-Cato has been promoted to the position of Senior Vice President, Finance, effective February 1, 2024. Mrs. Walker-Cato previously held the post of Vice President, Finance.

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Businessuite News24

CARILEC and Green Solutions International SKN Sign MOU to Strengthen Energy Capacity in the Caribbean

“Participants will operate within a collaborative, service-oriented ecosystem, supporting prosumers and households as utilities transform how they deliver energy. This partnership also supports the development of career pathways, job opportunities, and regional networking. And for successful GSI graduates, automatic eligibility for CARILEC’s individual membership offers valuable access to business development through our conferences, publications, and technical forums. It’s a clear win-win for both organisations and the broader Caribbean energy community.”

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In a bold step toward shaping a more sustainable and resilient Caribbean energy landscape, the Caribbean Electric Utility Services Corporation (CARILEC) and Green Solutions International SKN Incorporated (GSI) have signed a strategic Memorandum of Understanding (MOU) that will set the stage for a comprehensive programme of training, knowledge exchange, and technical capacity building across the region.

This partnership brings together CARILEC’s powerful network of over 100 members—including electric utilities, independent power producers, regulators, academic institutions, and energy service providers —with GSI’s recognised expertise in renewable energy, grid modernisation, and sustainable transportation. The MOU reflects a shared commitment to fostering a future-ready Caribbean energy workforce equipped to lead the region’s clean energy transformation.

A Collaborative Approach to Advancing Caribbean Energy Skills
Beginning in 2025, CARILEC and GSI will collaborate under the new agreement to deliver high-quality, certified training programmes in key technical areas, including Grid Operational Management, Solar Photovoltaics (PV), and Electric Vehicle (EV) Repair, Maintenance, and Charging Infrastructure. These programmes will be offered in blended formats—virtual and in-person—and tailored to the specific needs of utility professionals, engineers, regulators, and energy entrepreneurs across the region. The training will emphasise real-world application and hands-on learning, combining theoretical modules with practical sessions, webinars, and direct exposure to advanced clean energy tools and technologies.

Beyond technical instruction, the partnership will enable the development of professional certifications and ongoing learning opportunities, helping to raise the overall competency and recognition of regional talent. CARILEC and GSI will also host knowledge-sharing events—including forums, workshops, and industry networking sessions—to foster cross-border collaboration and the continuous exchange of expertise throughout the sector. By integrating global best practices and international standards, the initiative aims to ensure that Caribbean energy stakeholders remain well-positioned within a rapidly evolving global energy landscape.

A Win-Win Partnership: Empowering Energy Professionals Across the Region
“This MOU with GSI speaks to more than just a functional collaboration—it reflects the transformation of CARILEC into an association of electric energy solution providers,” explained Dr. Cletus Bertin, Executive Director of CARILEC. “It supports our strategic goal of broadening representation across the energy sector, including individual practitioners such as solar PV installers, EV technicians, and energy efficiency auditors. GSI is a critical partner in this shift, and we commend them for their innovative and groundbreaking work in capacity building across the region.”

“The most immediate impact for our member utilities will be access to a wider pool of trained and qualified professionals who can support the changing energy service model,” Dr. Bertin added.

“Participants will operate within a collaborative, service-oriented ecosystem, supporting prosumers and households as utilities transform how they deliver energy. This partnership also supports the development of career pathways, job opportunities, and regional networking. And for successful GSI graduates, automatic eligibility for CARILEC’s individual membership offers valuable access to business development through our conferences, publications, and technical forums. It’s a clear win-win for both organisations and the broader Caribbean energy community.”

This MOU responds directly to the calls for enhanced regional cooperation articulated in recent Caribbean Community (CARICOM) energy discussions and climate adaptation strategies. The Caribbean’s vulnerability to climate change, coupled with increasing electricity demand and volatile fossil fuel prices, has made the need for modern, secure, and clean energy infrastructure more urgent than ever. The collaboration also supports CARILEC’s commitment to enhancing the effectiveness of electric utilities and service providers across the region through training and knowledge sharing, ultimately facilitating the development of world-class electric energy services for the people of the Caribbean.

Transforming the Caribbean’s Energy Future through Local Expertise
“This partnership with CARILEC represents more than just technical collaboration—it’s a signal that the Caribbean is serious about its energy future,” said Dr. Wayne Archibald, Executive Director of GSI.

“For too long, our energy landscape has depended on imported expertise. GSI was founded with a mission to reverse that dynamic by investing in local capacity, home-grown knowledge, and scalable innovation. With this MOU, we’re creating a region-wide platform to equip professionals with the tools, certifications, and confidence to lead the clean energy transition from within. We’re not just training people to install solar panels or maintain EVs—we’re preparing them to build and manage the region’s smart, decentralised, and sustainable grid of the future.”

Dr. Archibald added: “As the Caribbean seeks to establish itself as a global model for small-island energy innovation, partnerships like this are laying the groundwork for long-term leadership in sustainable infrastructure. With a growing pool of certified professionals and stronger institutional linkages, the region is positioning itself not only to meet internal demand but also to export talent, ideas, and solutions to other developing economies facing similar energy and climate challenges.”

As both organisations continue to drive regional transformation, the CARILEC-GSI partnership sets a compelling example of how collaboration and innovation can create tangible pathways to energy resilience, economic growth, and environmental stewardship in the Caribbean.

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Powering the Future: CARILEC and Green Solutions International SKN Launch Electric Vehicle Training in St. Kitts

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Caption: Participants receiving hands-on training in electric vehicle maintenance and repair during an EV Training Programme facilitated by GSI SKN.

Basseterre, St. Kitts, 7th April 2025 – CARILEC, the leading association for electric utilities in the Caribbean, has partnered with Green Solutions International SKN Inc (GSI SKN) to deliver a cutting-edge Electric Vehicle (EV) Training Programme in St. Kitts from June 23 to July 4. This comprehensive training aims to equip professionals with the skills needed to work safely and effectively with electric and hybrid vehicles.

GSI SKN, a leading NGO driving clean energy growth and sustainability across the Caribbean, offers EV certifications from the Institute of the Motor Industry (IMI) in the UK and Technischer Überwachungsverein (TÜV) in Germany. The organisation partners with the IRENA SIDS Lighthouses Initiative, holds accreditation with the UNFCCC, and is the exclusive regional partner for the North American Board of Certified Energy Practitioners (NABCEP). With a strong track record in renewable energy and e-mobility, GSI SKN has successfully delivered consulting, training, and certification projects across the Caribbean, including in Guyana, Jamaica, Barbados, Bermuda, and St. Kitts & Nevis.

Dr Wayne Archibald, Executive Director at GSI SKN, will also contribute his expertise as a featured speaker at the upcoming Eastern Caribbean Central Bank (ECCB) 9th Annual Growth and Resilience Dialogue, taking place from April 10 to 11, 2025. His participation reflects the regional recognition of GSI SKN’s leadership in clean energy and sustainable mobility.

Accelerating the Caribbean’s Shift to Electric Vehicles

The Caribbean region is increasingly adopting electric vehicles (EVs), driven by government incentives, environmental concerns, and economic opportunities. Barbados leads in per capita EV usage in the region, with over 600 EVs on the road and more than 100 charging stations (2023). Jamaica has also made significant strides, setting a goal to have 10% of its transportation powered by EVs by 2030 and introducing electric buses into its public transit system. These efforts align with regional strategies, such as the CARICOM Regional Electric Vehicle Strategy (REVS), which aims to transform transportation systems and promote sustainable mobility across the Caribbean. St. Kitts and Nevis is also advancing electric vehicle (EV) adoption through a government-led initiative focused on EV maintenance training and policies to promote sustainability. The island’s compact size makes EVs an ideal solution for local transportation, with several EV charging stations already installed to support the growing number of electric vehicles on the road.

Preparing the Caribbean for the EV Revolution

This training is a vital step toward ensuring that regional professionals are equipped with the necessary technical and safety skills to handle EV systems. As governments and private sector entities increase their investments in electric vehicle infrastructure, trained specialists will be essential to maintaining and expanding this rapidly growing industry.

Dr Archibald, Executive Director at GSI SKN and a key advocate for green energy and sustainable development in the Caribbean, emphasised the significance of this training: “The adoption of electric vehicle technology is a crucial component of the Caribbean’s transition to a sustainable energy future. By providing professionals with hands-on training and internationally recognised certifications, we are not only advancing technical expertise but also fostering a culture of innovation and resilience in the region.”

World-Class EV Training for the Caribbean

The EV Training Programme is certified by IMI and TÜV, ensuring world-class accreditation and technical proficiency. Participants will gain hands-on expertise in EV maintenance, repair, and diagnostics, with courses designed to cater to a broad spectrum of professionals, including auto technicians, fleet operators, engineers, compliance officers, and safety professionals. Participants will benefit from the IMI certification, which ensures that auto professionals receive industry-standard training, and the TÜV certification, recognised globally for safety and compliance in engineering.

Participant Testimonials

Past participants have found the training to be highly relevant and beneficial. Devlin Connor, Vehicle Superintendent with the Government of Anguilla’s Vehicles Department, shared his experience:

“This training course was incredibly valuable and came at a critical time, as electric vehicles represent the future of transportation. It was essential for us to have the opportunity to attend, gain insights, and receive hands-on training in EV operation and safety practices. This knowledge will enable us to be better prepared to manage the challenges and opportunities that arise from the adoption of EVs.”

Vince Archibald, Technician, Automotive Division, Clarence Fiztroy Bryant College, reflected on the significance of the training: “This training was an eye-opening experience, providing hands-on expertise and a deeper understanding of EV technology. The programme was not only highly beneficial but also innovative, equipping us with the latest industry knowledge and best practices. As the automotive industry transitions to greener technologies, this kind of specialised training is essential for keeping professionals ahead of the curve.”

Expert-Led Training

The training will be facilitated by Andy Latham, a globally recognised expert in electric and hybrid vehicle technology, with an extensive career spanning senior management roles in the automotive sector. As a Fellow of the Institute of the Motor Industry (FIMI) and an Incorporated Engineer with the Engineering Council UK, Latham will provide participants with a world-class learning experience.

How to Register

Contact training@carilec.org or slprimus@carilec.org, provide your organisation’s name, the number of participants and contact details. For further inquiries, call +1 (758) 717 9577.

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Businessuite Top 100 Caribbean Companies and CEO – 2024 Digital Edition

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Jamaican Businesses Encouraged To Take Advantage Of Existing Trade Agreements

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Jamaican businesses are being encouraged to take advantage of the island’s existing trade agreements to boost competitiveness and expand into new markets.

Vice President, Exports, Jamaica Promotions Corporation (JAMPRO), Sonja Linton, highlighted the significant opportunities available through these agreements, many of which, she said, are currently underutilised.

She was speaking at the Business Acceleration Centre (BAC) Accelerator Series at the Terra Nova All-Suite Hotel in Kingston on Thursday (February 6).

Jamaica has about 20 trade agreements relating to contract manufacturing, offering reduced rates for goods entering the United Kingdom (UK) and European Union (EU).

These arrangements enable businesses to price their products more attractively in international markets.

However, many Jamaican companies are not fully utilising these agreements due to a lack of awareness or understanding.

Ms. Linton emphasised the potential for growth through contract manufacturing and white labelling, stating, “this is an opportunity for companies in Jamaica to make products under other labels… . You have a contract to manufacture 100 soaps for the Marriott group, you send it off to them, and that’s it”.

This model allows businesses to focus on production, reduce distribution costs, and utilise excess capacity.

The Trade Board and Customs Agency websites offer comprehensive information on trade agreements, including the CARIFORUM-EU agreement, which covers the United Kingdon (UK) and Europe.

Ms. Linton urged businesses to explore these resources.

“I invite you to visit the Trade Board website and learn some more about the trade agreements…; trade agreements can be quite beneficial, and if you’re operating in the Special Economic Zones (SEZs) and you are making use of these trade agreements, you can see the opportunity [to be] competitive wherever you go,” she said.

She stressed that by leveraging these trade agreements, Jamaican businesses can enhance their competitiveness, access new markets, and drive economic growth.

JIS

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