Barbados Economic and Social Report 2017

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Barbados Economic and Social Report 2017 BARBADOS ECONOMIC AND SOCIAL REPORT 2017 Prepared by the Research and Planning Unit Ministry of Finance, Economic Affairs & Investment Barbados Economic and Social Report 2017 TABLE OF CONTENTS EXECUTIVE SUMMARY…………………………………………………………………………………...1 I. INTERNATIONAL ECONOMIC DEVELOPMENT…………………………………….....4 II. REGIONAL ECONOMIC DEVELOPMENT…………………………………………........5 III. THE BARBADOS ECONOMY……………………………………………………………...6 A. Gross Domestic Product…………………………………………………………………………………....….6 B. Sectoral Performance ……………………………………………………………..…………….……..….…..8 i. Accommodation And Food Service Industry……………….…………………………….….…...8 ii. Industrial Sector …………………………………………………………………………………………...12 iii. Agriculture And Fishing …………………………………………………………….….………….…....13 iv. International Financial And Business Services……………….…………………….….………20 v. Construction.……………………………………………………………………………………….….….….21 vi. Energy And Utilities……………………………………………………………………………......….….23 vii. Transport And Storage………………………………………………………………………......………27 C. Balance Of Payments ………………………………………………………………………….……….………29 D. Fiscal Developments and Public Finances………………………………………………..…………...33 E. Money, Banking and Capital Markets……………………………………………………………………36 F. Employment, Inflation and Labour Market………………………………….………….……..……...41 G. Commerce and Consumer Affairs…………………………………………………………………..…….45 H. Small Business Development………………………………………………………………………….…...46 I. Foreign Trade and International Relations…………………………………………………………..48 IV. SOCIAL SECTOR DEVELOPMENT……………………………………………………..52 A. Education And Training……………………………………………………………………………………..52 B. Culture, Youth & Sports ………………………………………………………………………………….....57 C. Population ……………………………………………………………………………………………….…..…..58 D. Health ……………….…………………………………………………………………………………….…..….. 59 E. Environment…………………………………………………………………………………………..….……..67 F. Law And Order…………………………………………………………………………………………….……76 G. Social Services …………………………………………………………………………………….……………77 V. PUBLIC SECTOR INVESTMENT AND OFFICIAL DEVELOPMENT ASSISTANCE.….95 A. Public Sector Investment Programme (PSIP)…………………………………………………...…95 B. Official Development Assistance…………………………………………………………..………........97 i Barbados Economic and Social Report 2017 VI. ECONOMIC OUTLOOK FOR 2018………………………………………………………111 LIST OF FIGURES Figure 1 Stay-over Visitor Arrivals by Market…....……... …………………………………………………....…….8 Figure 2 Cruise Passenger Arrvials (January to December)……………………………………………...…...9 Figure 3 Vistor Expenditure by Market 2016…………………………………………………………………….....10 Figure 4 Vistor Expenditure by Market 2017……………………………………………………………….….…...11 Figure 5 Annual Index of Industrial Production ……………………………………………………..……….…...13 Figure 6 Fish Landings by Type (Tonnes)…………………………………………………………………...……….16 Figure 7 Importation of Select Livestock Commodities ('000kgs) 2016………………………..….…....19 Figure 8 Importation of Select Livestock Commodities ('000kgs) 2017………………………..….…....19 Figure 9 Applications Received by the Building Standards Authority 2016-2017…………….….....22 Figure 10 Number of Driving Tests Taken 2016-2017……………..…………………………………….……….29 Figure 11 Number of Regulation Tests Taken 2016-2017………..………………………………….....…….....29 Figure 12 Visible Trade Balance (2013 – 2017) …………………………………………………………….……….30 Figure 13 Direction of Trade – Domestic Exports and Imports for 2017 (per cent share)………...32 Figure 14 Commercial Bank Sectoral Credit (per cent of Toal Credit 2013-2017)…..………………..37 Figure 15 Inflation Dec-2016 to Dec-2017……………………………………………………………………………..43 Figure 16 Expenditure by Benefit Categories in the Public and Private Sector for 2017……….......61 Figure 17 Total Attendances, General Practice Clinic……….......……………………………….………………...61 Figure 18 Total Attendances, Mental Health Clinic……………….…………………………………………………63 Figure 19 Accident and Emergency Visits, QEH………………….………………………………………………......65 Figure 20 Referrals for 2016 and 2017……………………………….…………....………………………………........85 LIST OF TABLES Table 1.1-1 Indicators of Economic Performance in Advanced Economies 2016 - 2017………….…....4 Table 3.1-1 Real Gross Domestic Product 2013-2017............................................................................................7 Table 3.2-1 Total Stay-over Vistor Expenditure by Expense Item 2016-2017.………………………...….10 Table 3.2-2 Total Cruise Passenger Expenditure by Item (US$'000) 2016-2017………………………...12 Table 3.2-3 Local Agricultural Production (‘000 kgs) 2014 - 2017……………………………….………........14 Table 3.2-4 Food Import Bill 2014- 2017...……………………………………………………………………….….…...17 Table 3.2-5 Importation of Select Crop Commodities 2014-2017.……………………...……………..….……18 Table 3.2-6 Number of New International Business Entities Licensed for 2011-2017….…….......…..20 Table 3.3-1 Balance of Payments 2011 – 2017 …………………………………………………………………...…....31 Table 3.4-1 Current Revenue by Source 2012/2013 - 2017/2018……………………………………..………33 Table 3.4-2 Central Government Expenditure by Item 2012/2013 - 2017/2018…………….................33 Table 3.5-1 Commercial Bank Deposits 2012 - 2017………………...……………………………………..…..…...36 Table 3.5-2 Registrants for Exempt, Qualifying, Management & Holding Companies 2017................39 Table 3.5-3 Securities Exchange Trading (Selected markets) 2006 - 2017..………………………….........41 Table 3.6-1 Employment by Occupation (‘000) 2016 - 2017....……………………………………………….....42 Table 3.6-2 Employment by Major Industrial Division 2017 (‘000)………………….……….……………….43 Table 3.7-1 Import and Export Licenses Processed in 2017………….………………….……….………...….....44 Table 3.7-2 Number of Price Monitoring Inspections and Surveys Conducted in 2017…...….……… 44 Table 3.7-3 Number of Verification of Weights and Measures Inspections Conducted in 2017…....45 Table 4.1-1 Education Expenditure FY 2015/2016 – FY 2017/2018………………………………..………...52 ii Barbados Economic and Social Report 2017 Table 4.1-2 Barbadian Students Enrolled at UWI by Faculty 2015/16 – 2016/17…………….….………55 Table 4.1-3 Barbados Vocational Training Board Enrolment and Output………………………....………....56 Table 4.3-1 Births, Deaths and Infant Mortality 1997-2017…..………………………………………..….……….58 Table 4.4-1 Health Expenditure by Programme Head FY 2015/2016 – FY 2017/2018………….……..60 Table 4.4-2 Expenditure on the Number of Prescriptions Filled 2011 - 2017…………….…………..….....62 Table 4.5-1 Building Development Applications Processed in 2017………….……………………….………..71 Table 4.5-2 Complaints Received by EPD in 2017….………….………………………………………….….…………71 Table 4.7-1 Budgetary Allocations in the Ministry of Social Care (FY 2017/2018) …………...…………77 Table 4.7-2 Total Average Attendance at Government Day Care Centres 2017…………………...……….83 Table 4.7-3 Registered Private Day Care Centres………………………………………………...…………....……….84 Table 4.7-4 Abuse by Type………………………………………………………………..……………………….……..……....86 Table 4.7-5 RDC Request for Services 2017…………………………………………………………………….…….......87 Table 4.7- 6 RDC Requested Services Provided 2017……………………………………………………….………....87 Table 4.7- 7 Rural Enterprise Loans Approved in 2017…………………………………………………….………...88 Table 4.7- 8 UDC Housing And Related Projects 2017………………………………...............................................93 iii Barbados Economic and Social Report 2017 EXECUTIVE SUMMARY The economic landscape for Barbados reduce its financing to government while remained challenging during the year 2017. safeguarding the country’s currency peg. Internal reserves were low and continued to Barbados’ currency peg to the US dollar has slip, the fiscal deficit and debt level remained been facing downside risks due to, inter alia, high and unsustainable despite moderate the continuous recourse to short-term debt progress in the implementation of the 2017 financing issued by government and financial and budgetary measures. Economic accommodated by the Central Bank of growth, while registering an increase for the Barbados. third consecutive year has been significantly affected by the continued fiscal adjustment. During 2017, fiscal adjusts continued with emphasis on curtailing: the high level of The fiscal measures, which have been debt, the unsustainable fiscal deficit, and the in progress since 2013 (with the looming Balance of Payments (BOP) risks as implementation of the 19-month adjustment financing challenges from official creditors programme) while meeting some level of and commercial banks intensified. While the success over the years has not been sufficient increase in the mandatory securities reserve in fostering the adjustment needed to reduce requirement by the CBB cushioned the impact the fiscal imbalances. This resulted in from the fall in lower investments in government falling short of its desired Government paper by commercial banks, roll- objectives. Further fiscal adjustment over risk remained elevated. The government continued in late 2016 as the larger than being faced with the urgent need to address expected deficit persisted placing increased the financing constraint and to mitigate other pressure on the financing challenges. A large associated risks sought to introduce further portion of government’s financing needs was fiscal adjustment to reduce the fiscal deficit. therefore met by the Central Bank of Barbados (CBB) and the National Insurance Scheme As a result of the cumulative impact of (NIS) during the 2016/17 fiscal period, while the 2016 and 2017 budgetary measures the commercial banks reduced their exposure to fiscal balance narrowed by $125.8 million at sovereign debt by approximately 4.8 the end of the financial year 2017/18. The percentage points. deficit now stands at 4.9 per cent of GDP. Notwithstanding
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