DLP Leader Refutes Upswing Claims For Barbadian Economy

by Amanda Banks, Tax-News.com, London

04 February 2003

Opposition Democratic Labour Party (DLP) leader, Senator Clyde Mascoll this week refuted the suggestion that Barbados' economy has almost pulled itself out of recession, asserting that the country remained in economic danger during 2002, despite substantial government spending.

Speaking on Thursday, Governor of the Barbados Central Bank, Dr Marion Williams announced that the economy had declined just 0.6% in 2002 compared with 2.8% the previous year, and that consequently, things appeared to be looking up for the jurisdiction.

However, Senator Mascoll has suggested that the outlook for the future is not nearly as optimistic as that descibed by Dr Willams, and according to the Barbados Daily Nation on Monday, suggested that the Central Bank Governor's statistics on tourism in the region had been massaged to appear more impressive.

The DLP leader also drew attention to the size of the budget deficit, explaining that:

'Government's fiscal deficit of $273 million is the largest ever recorded, exceeding the 1990 deficit by $30 million.'

According to Dr Williams, however, this is set to drop over the coming year, as the resumption of economic activity in Barbados should boost the indirect tax take.

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