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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

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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CARIBIZTECH 2025 “Harnessing Generative AI: Revolutionizing Logistics, Fulfillment, Ecommerce and Transportation Across the Caribbean’s Digital Future”

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A Silicon Mountain Project – Artificial Intelligence Summit 2025, Silicon Mountain Mandeville Manchester Jamaica. October 1-3 2025.

2025 Event Theme: “Harnessing Generative AI: Revolutionizing Logistics, Fulfillment, Ecommerce and Transportation Across the Caribbean’s Digital Future.”

Event Structure: • Duration: 2 days   • Format: In-person   • Sessions: 4 thematic segments, each featuring a keynote presentation followed by two panel discussions

Key Features of CARIBIZTECH:

Expert Keynotes & Panels: Industry leaders from across the Caribbean and beyond will share insights on AI and its impact on, Logistics, Fulfillment, and Transportation, Fintech Innovations and Mobile Payments, E-commerce, Voice Commerce, and Social Commerce cybersecurity, cloud computing, and other emerging technologies.

Startup Ecosystem & Pitch Competitions: CARIBIZTECH will feature a showcase for startups to pitch their ideas, enabling entrepreneurs to connect with venture capitalists and investors.

Workshops & Training: Participants will engage in hands-on sessions aimed at upskilling in areas like blockchain, data science, and AI.

Networking & Collaboration Hubs: CARIBIZTECH will create spaces for participants to build partnerships, echoing the community-building focus of the event.

Celebration of Regional Talent: A special emphasis will be placed on spotlighting Caribbean-born innovators and fostering collaboration between local and international stakeholders.

Impact Goals:

  1. Foster a thriving tech ecosystem in Mandeville Central Jamaica.
  2. Attract global attention and investment to Silicon Mountain.
  3. Cultivate a culture of innovation and collaboration across the region.

Day 1:

Session 1: Revolutionizing Logistics, Fulfillment, and Transportation with Generative AI

• Keynote Presentation: “AI-Driven Logistics: Navigating the Future of Caribbean Transportation” Overview: Examine how Generative AI is optimizing supply chains, enhancing delivery systems, and transforming transportation networks in the Caribbean.

• Panel Discussion 1: “Smart Ports and AI: Enhancing Maritime Logistics” Overview: Explore the integration of AI in port operations to improve efficiency and security.

• Panel Discussion 2: “AI in Urban Mobility: Redefining Public Transportation” Overview: Discuss AI applications in public transit systems to enhance commuter experiences.

Session 2: The Evolution of Commerce: E-commerce, Voice Commerce, and Social Commerce in the Age of AI

• Keynote Presentation: “Voice-Activated Shopping: The Next Frontier in Caribbean Retail” Overview: Delve into how AI-powered voice commerce is reshaping consumer interactions and purchasing behaviours.

• Panel Discussion 1: “Social Commerce Strategies: Leveraging AI for Business Growth” Overview: Discuss how businesses can utilize AI to enhance social media-driven sales.

 Panel Discussion 2: “AI Personalization in E-commerce: Enhancing Customer Experience” Overview: Examine AI’s role in creating personalized shopping experiences to boost customer satisfaction and loyalty.

Day 2:

Session 3: Fintech Innovations: Redefining Mobile Payments with Generative AI

• Keynote Presentation: “AI-Powered Fintech: Revolutionizing Mobile Payments in the Caribbean” Overview: Explore how Generative AI is enhancing security, efficiency, and accessibility in mobile payment solutions.

 Panel Discussion 1: “Blockchain and AI: Securing the Future of Digital Transactions” Overview: Discuss the convergence of AI and blockchain technologies in creating secure payment ecosystems.

• Panel Discussion 2: “Financial Inclusion through AI: Expanding Access to Banking Services” Overview: Examine how AI-driven mobile payment solutions are promoting financial inclusion in underserved communities.

Session 4: Generative AI: Shaping the Future of Technology and Business

• Keynote Presentation: “The Creative Machine: Unleashing the Potential of Generative AI” Overview: Provide an in-depth understanding of Generative AI and its broad applications across various industries.

 Panel Discussion 1: “Ethical Considerations in AI: Balancing Innovation and Responsibility” Overview: Discuss the ethical implications of AI development and deployment, emphasizing responsible innovation.

 Panel Discussion 2: “AI and the Future Workforce: Preparing for Emerging Opportunities” Overview: Explore how AI is transforming job markets and the skills required for future employment.

Day 3: Additional Features to Enhance Appeal (Optional)

Caribiztech 2025 aims to provide a comprehensive and engaging experience that addresses the latest trends and opportunities in Generative AI, tailored to the Caribbean context.

Startup Showcase: An Exhibition area where emerging tech startups can present their AI-driven solutions, fostering networking and investment opportunities.   Workshops and Masterclasses: Interactive sessions providing hands-on experience with AI tools and technologies, tailored for different expertise levels.  Networking Events: Organized meetups, including a welcome reception and closing gala, to facilitate connections among attendees.

Diversity and Inclusion Panels: Discussions focused on promoting inclusivity within the tech industry, ensuring diverse perspectives in AI development.

Knights$Angels Investor Pitch Sessions:

Opportunities for entrepreneurs to pitch their AI-based business ideas to potential investors, encouraging funding and collaboration.   “Knights$Angels” is an exciting, high-stakes 60-minute made-for-TV program that brings the world of investment to life by providing exclusive insight into the real-world decision-making processes of investors and how entrepreneurs pitch their ideas.   The show aims to transform how investment is perceived in the Caribbean, focusing on providing a clear understanding of how deals are made and what it truly takes to secure investment.   The programme will specifically focus on Technology and Generative Artificial Intelligence (AI), covering emerging areas like Voice Commerce, Transportation and Logistics, and related tech trends that are shaping the future. Entrepreneurs with innovative ideas in these fields will have the unique opportunity to pitch to investors who are ready to commit capital to fuel the growth of these high-potential ventures.

01 Presentation Opportunities :

For more information on presentation opportunies please email thesiliconmountainproject@gmail.com with the reference “Presentations”  or call  (876) 630 2216 (O) (876) 542 3719 (M) siliconmountainproject.com

02 Sponsorship Opportunities

For more information on Sponsorship Opportunies please email thesiliconmountainproject@gmail.com with the reference “Sponsorship”  or call  (876) 630 2216 (O) (876) 542 3719 (M) siliconmountainproject.com

03 Exhibition Opportunities

For more information on Exhibition Opportunies please email thesiliconmountainproject@gmail.com with the reference “Exhibitions” or call  (876) 630 2216 (O) (876) 542 3719 (M) siliconmountainproject.com

 

 Official Event Organisers : 360 Signature Events is an AMK Communications Limited Company. Operating from “Silicon Mountain – The Business Technology and Innovation Hub of the Caribbean” Mandeville Manchester Jamaica. 360 Signature Events, specializes in organizing Exhibitions, Conventions, Conferences, Seminars, Sporting and Hospitality Events, Road Shows, Brand Promotions, Product Launches, Incentive Programs, and other Special Events. Let us help you make your next event extraordinary. To learn more, check the following link: www.amkcom.com, 360signatureevents@gmail.com

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itel Opens its Doors in Belize City

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After 2 years of remote operations and less than one year since construction began, itel has now officially opened its Belize City location. The 40,000 square foot facility will eventually house over 700 call center agents plus support staff signaling a huge investment in the Central American country.

This expansion is part of itel’s strategic growth into untapped markets that are ripe for innovation and offer competitive advantages that support customer experience (CX) delivery for emerging high potential industries. Despite an ongoing economic downturn that has affected many CX providers globally, itel has remained resilient and steadfast in its commitment to diversifying its nearshore operations to attract North American brands.

Belize has a relatively young outsourcing industry that has experienced tremendous growth of over 80% since 2005. It’s considered a great value destination due to its high workforce availability, skilled labor pool, a low attrition rate of 10% and the government’s competitive investment program aimed at diversifying the country’s economic activity beyond tourism. Belize City is the country’s hub for its outsourcing industry and itel’s facility is located at the commercial center with easy access for team members to travel in and out of the city from the surrounding areas.

“We’re seeing strong interest from clients who are recognizing Belize as a great alternative to some of the saturated markets, both in the region and offshore, where it’s getting harder and more expensive to recruit and retain talent,” stated Yoni Epstein, CD, itel’s founding Chairman and CEO. “We dipped our toe into the market in 2022 through a partnership and work-at-home model, but we decided to go all in in 2023 and we are opening our doors with a committed base of clients and a pipeline eager to discover what Belize has to offer.”

Belize is the only Central American country with English as its official language.
UNESCO ranked the country 13 th globally for investment in education in 2021 and its bilingual talent pool has a strong affinity to North American culture. For these reasons, as well as its proximity to the US, Belize offers competitive advantages that clients can leverage to provide tailor-made customer experiences and lower their CX delivery costs by staying closer to home.

“We’ve been impressed with the welcome itel has received in the country so far and look forward to continuing to partner with the Government of Belize, local vendors and other stakeholders as we bring clients in to explore its infrastructure and culture. It’s time to invest in Belize outsourcing and as the Caribbean’s largest homegrown CX partner, we’re ready to lead the way,” expressed Epstein.

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