Barbados Economic & Social Report 2008 by Barbados Labour Party

BARBADOS ECONOMIC AND SOCIAL REPORT 2008

Presented to the Legislature by the Prime Minister and Minister of Finance, Economic Affairs, Labour, Civil Service and Energy The Hon. David J. H. Thompson July, 2008 Prepared by the Research and Planning Unit Ministry of Finance, Economic Affairs and Energy July, 2008

Barbados Economic and Social Report 2008

TABLE OF CONTENTS Executive Summary .......................................................................................................................1 I

International Economic Developments ..............................................................................4

Regional Economic Developments .....................................................................................7

III

The Barbados Economy A. B. C. D. E.

Sectoral Performance A. B. C. D. E. F. G.. H.

The Real Sector ...................................................................................................... 15 Balance of Payments ............................................................................................. 21 Public Finance ......................................................................................................... 23 Money, Banking and Capital Markets .................................................................... 29 Employment, Inflation and Labour Market Information .......................................... 35

Agriculture and Fisheries ........................................................................................ 44 Manufacturing ........................................................................................................ 52 Tourism .................................................................................................................. 58 Construction ......................................................................................................... 61 International Financial and Business Services ....................................................... 64 Energy and Utilities ................................................................................................. 68 Commerce and Consumer Affairs ............................................................................ 71 Small Business Development .................................................................................. 73

Social Sector Developments A. B. C. D. E. F.

Education and Training ........................................................................................... 76 Population ............................................................................................................... 82 Health ...................................................................................................................... 84 Social Services ........................................................................................................ 88 Environment .......................................................................................................... 103 Law and Order ....................................................................................................... 111

Economic and Social Outlook for 2009 .......................................................................................

Barbados Economic and Social Report 2008

LIST OF FIGURES Figure 1

Direction of Trade -- Domestic Exports for 2008 (%) ............................................... 23

Figure 2

Direction of Trade -- Total Imports for 2008 (%) ...................................................... 23

Figure 3

Visible Trade Balance (1996-2008) ............................................................................ 23

Figure 4

Public Finance .......................................................................................................... 25

Figure 5

Commercial Bank Sectoral Credit (% of Total Credit) ............................................... 31

Figure 6

Securities Exchange of Barbados (2002-2008) ......................................................... 34

Figure 7

Inflation Rate ........................................................................................................... 37

Figure 8

Macro-Productivity Growth (% Change) ................................................................. 41

Figure 9

Sugar Exports (1998-2008) ....................................................................................... 45

Figure 10

Index of Industrial Production (1997--2008) .............................................................. 54

Figure 11

Commercial Bank Credit to the Manufacturing Sector ............................................. 54

Figure 12

Tourists Arrivals by Type ........................................................................................ 59

Figure 13

Tourists Arrivals by Principal Markets .................................................................... 60

Figure 14

Student Revoving Loan Scheme ........................................................................ 82

Figure 15

Population Distribution 2000 .............................................................................. 84

Figure 16

Population Distribution 1990 .............................................................................. 84

Figure 17

Health Expenditure for the Fiscal Year 2008/2009 ............................................ 85

Figure 18

National Reported Crimes .................................................................................. 112

Key P: Provisional ii

E: Estimated

R: Revised

Barbados Economic and Social Report 2008

LIST OF TABLES Table 1.1-1

Indicators of Economic Performance in Advaniced Economies 2007 -- 2008 ................................................................................................................ 5

Table 2.1-1

Indicators of Economic Performance in Selected Regional Countries 2004 -- 2008 .............................................................................................................. 10

Table 3.1-1

Estimates of Real Gross Domestic Product and Real Growth Rates 2004 -- 2008 .............................................................................................................. 19

Table 3.1-2

Composition of Expenditure on Gross Domestic Product 1999 -- 2008 .............. 20

Table 3.2-1

Balance of Payments 2003 -- 2008 .......................................................................... 22

Table 3.3-1

Central Government Operations 2004/2005 -- 2008/2009 ...................................... 26

Table 3.3-2

Current Revenue by Source 2004/2005 -- 2008/2009 ............................................ 27

Table 3.3-3

Central Government Current Expenditure by Item 2004/2005 -- 2008/2009 ........ 27

Table 3.3-4

Fiscal Deficit and Financing 2004/2005 -- 2008/2009 ............................................ 28

Table 3.4-1

Selected Indicators of the Banking System as at December, 2003 -- 2008 .......... 29

Table 3.4-2

Commercial Bank Deposits 2003 -- 2008 ................................................................ 30

Table 3.4-3

Securities Exchange Trading 2003 -- 2008 ............................................................ 32

Table 3.4-4

Volume of Shares Traded 2007 -- 2008 ................................................................... 33

Table 3.4-5

Index and Market Capitalisation 2007 -- 2008 ....................................................... 33

Table 3.5-1

Employment by Major Industrial Division 1995 -- 2008 ....................................... 36

Table 3.5-2

Local Placement by Occupational Group 2004 -- 2008 ......................................... 38

Table 3.5-3

Overseas Placement Programmes 2004 -- 2008 ..................................................... 39

Table 3.5-4

Grievances by Category 2005 -- 2008 .................................................................... 40

Table 3.5-5

Work Stoppages by Economic Activity 2005 -- 2008 ............................................ 40

Table 3.5-6

Absenteeism Rate .................................................................................................. 41

Table 3.5-7

Labour Productivity Growth in Selected Industries 2004 -- 2007 ........................ 43

Table 4.1-1

Vegetable Production (’000 kgs) 2002 -- 2008 ....................................................... 45

Key P: Provisional

E: Estimated

R: Revised iii

Barbados Economic and Social Report 2008

LIST OF TABLES -- Cont’d Table 4.1-2

Vegetable Imports (’000 kgs) 2002 -- 2008 ............................................................. 46

Table 4.1-3

Root Crop Production (’000 kgs) 2002 -- 2008 ...................................................... 47

Table 4.1-4

Root Crop Imports (’000 kgs) 2002 -- 2008 ............................................................ 48

Table 4.1-5

Livestock and Dairy Production (’000 kgs) 2002 -- 2008 ...................................... 48

Table 4.1-6

Livestock and Dairy Product Imports (’000 kgs) 2002 -- 2008 ............................ 49

Table 4.1-7

Production of Cotton Lint (’000 kgs) 2002 -- 2008 ............................................... 50

Table 4.1-8

Commercial Banks Credit to the Agricultural Sector 1997 -- 2008 ....................... 50

Table 4.1-9

Fish Landings by Type (Tonnes) 2003 -- 2008 ..................................................... 52

Table 4.1-10 Fishing Fleet by Type 2001 -- 2006 ........................................................................ 53 Table 4.2-1

Direction of Trade with CARICOM Countries Domestic Exports 2003 -- 2008 ............................................................................... 55

Table 4.2-2

Investment in BIDC Assisted Companies 2004 -- 2008 ........................................ 56

Table 4.2-3

New Enterprises Established 2004 -- 2008 ............................................................ 57

Table 4.2-4

Employment in the Manufacturing Sector and Related Services 2004 -- 2008 ........................................................................................... 58

Table 4.3-1

Tourist Arrivals by Country of Residence 1998 -- 2008 ....................................... 60

Table 4.3-2

NCF Cultural Workshops 2008 ............................................................................. 61

Table 4.4-1

Selected Indicators of the Construction Sector 2002 -- 2008 .............................. 62

Table 4.5-1

Number of New International Business Entities Licensed for the years 2003 -- 20081 ............................................................................................................................................ 6 5

Table 4.5-2

Total Number of International Business Entities Licensed for the years 2004 -- 20081 ............................................................................................................................................ 6 6

Table 4.6-1

Oil, Gas and Utility Production and Consumption 2005 -- 2008 ......................... 70

Table 4.7-1

Import and Export Licences Processed in 2008 ................................................... 71

Table 4.7-2

Applications Received and Approved for Small Business Status 2000 -- 2008 .................................................................................................. 74

Key P: Provisional iv

E: Estimated

R: Revised

Barbados Economic and Social Report 2008

LIST OF TABLES -- Cont’d Table 4.7-3

Applications for Small Business Status 2000 -- 2006 ..................................... 7 4

Table 4.7-4

Loans Approved for Small Business Sector 2008 ............................................ 7 4

Table 4.7-5

BIDC Small Business Support .............................................................................. 75

Table 5.1-1

Primary and Secondary Enrolments 2001/02 -- 2007/08 ........................................ 77

Table 5.1-2

Tertiary Enrolments 2003/04 -- 2008/2009 .............................................................. 79

Table 5.1-3

Barbadian Students Enrolled at UWI by Faculty 2007/08 -- 2008/09 ................. 80

Table 5.1-4

Barbados Vocational Training Board Enrolment and Output of Skilled Manpower 2008/09 ................................................................................ 81

Table 5.1-5

Student Revolving Loan Scheme .......................................................................... 82

Table 5.2-1

Births, Deaths and Infant Mortality 1992 -- 2008 ................................................. 83

Table 5.3-1

Drug Service Expenditure for the Fiscal Year 2007/08-2008/09 ........................... 86

Table 5.3-2

Number of Prescriptions filled in the Public Sector and Their Corresponding $ Value 2006/07-2008/09 .............................................................. 87

Table 5.4-1

Monthly Occupancy .............................................................................................. 89

Table 5.4-2

Government Day Nuseries 2008 ............................................................................ 91

Table 5.4-3

Centres with Town Planning Issues ...................................................................... 92

Table 5.4-4

Total Number of Child Abuse Reports for 2008 ................................................... 93

Table 5.4-5

New Cases of Child Abuse for 2008 ...................................................................... 94

Table 5.4-6

Counselling Provided to the Bereaved .................................................................... 96

Table 5.4-7

Monthly Subsidy Paid ........................................................................................... 98

Table 5.4-8

Distribution of Land Surveying Services ............................................................. 98

Table 5.4-9

Land Valuations Paid .............................................................................................. 99

Table 5.4-10 Community Roads Programme ............................................................................. 100 Table 5.4-11 Pedestrian Access ............................................................................................... 101 Key P: Provisional

E: Estimated

R: Revised v

Barbados Economic and Social Report 2008

LIST OF TABLES -- Concl’d Table 5.4-12 Land Ownership Compensation Paid ................................................................ 101 Table 5.4-13 House Repair/Replacement Programme .......................................................... 102

Table 5.6-1

Cannabis and Cocaine Drug Offences 2006 -- 2008 ..................................... 113

Table 5.6-2

Cases Involving Firearms 2004 -- 2008 ................................................................ 113

Table 5.6-3

Serious Crime 2001 -- 2008 .................................................................................... 114

Table 5.6-4

Crime Against Visitors 2004 -- 2008 ..................................................................... 115

Table 5.6-5

Road Accidents 2005 -- 2008 ............................................................................... 116

Barbados Economic and Social Report 2008

Executive Summary

EXECUTIVE SUMMARY The Barbadian economy slowed during 2008, growing by an estimated 0.7 per cent compared with 3.3 per cent a year earlier. This weakened performance reversed five (5) consecutive years of fairly strong growth averaging above 1.0 per cent. As a small open economy, Barbados was impacted negatively by the occurrences of higher oil and commodity prices, and the ongoing global financial and economic crisis. Real economic activity was driven by modest growth in the non-traded sector, which expanded by 1.2 per cent. Growth in the traded sector slowed to its slowest pace since 2005, recording a decline of 1.1 per cent. This outturn was attributed to a fall off in tourism value added which fell by an estimated 1.7 per cent, after recording an increase of 3.1 per cent in 2007. The non-traded sector grew by 1.2 per cent in 2008, a rate significantly below the average rate of growth of 4.7 per cent registered in the last four (4) years. Growth in the sector was constrained by the decline in tourism activity and higher commodity prices. During the review period, construction activity declined by 3.4 per cent as a result of the completion of major projects. There was also a 1.4 per cent decline in the production of electricity, gas and water sub-sector, while slower growth was recorded for wholesale and retail (0.7 per cent); transport, storage and communication (2.7 per cent); and business and other services (2.4 per cent). While activity in the government sub-sector remained unchanged, improvements were however recorded in mining and quarrying which grew by an estimated 2.5 per cent. During 2008, sugar production declined by an estimated 9.0 per cent or 31.6 thousand tonnes. Alternatively, non-sugar agriculture increased by 3.2 per cent, led by an expansion in fish catches. Manufacturing output during the review period declined by 1.9 per cent. This

outturn was attributed to the spiraling price of oil in the first half of 2008 combined with the slowing demand for goods worldwide as a result of the global economic downturn. The international business and financial services sector continued to exhibit moderate growth, despite various challenges. During the review period, there were an estimated 579 new licences issued compared with 764 in 2007, representing a 13.9 per cent decrease in new entities licensed. New registrants to the International Business Companies (IBCs) stood at 481 while the number of New Societies with Restricted Liabilities (SRLs) licensed was eighty-three (83). The annual rate of unemployment for 2008 was 8.1 per cent, representing a 0.7 percentage point increase over the 7.4 per cent, which was recorded in 2007. At the end of December 2008, the average rate of inflation was estimated at 7.3 per cent compared with 4.7 per cent for the same period in 2007. Barbados’ external position worsened in 2008, due to rising oil prices during the first half of the year which inflated the value of fuel imports. At the end of the year, the balance on the external current account was in deficit to the extent of $767.2 million or approximately 10.4 per cent of GDP (at market prices). Sluggish growth in travel receipts and an increase in retained imports contributed significantly to this deficit. Modest growth in domestic exports of 1.7 per cent was not enough to offset the 13.9 per cent increase in retained imports. The capital and financial account recorded a surplus of $422.7 million in 2008, a 52.5 per cent decrease compared with the surplus of $889.6 million for 2007. The reduction in net inflows was driven by additional debt service payments, repatriation of profits and large tourism-related outflows.

Barbados Economic and Social Report 2008

At the end of 2008, the NIR fell by 15.7 per cent to $1,895.2 million compared with $2,247.1 million at the end of 2007. Higher retained imports combined with lower travel receipts and increased capital outflows led to this contraction in the NIR. As a result, the import reserve cover for goods stood at 20.1 weeks, a decrease of 9.9 weeks over that of 2007. Domestic exports during 2008 were estimated at $526.3 million, representing an increase of 2.5 per cent or $12.8 million over the $513.5 million recorded for 2007. During 2008, total imports (cif) stood at $3,493.0 million, an increase of $127.9 million or 3.8 per cent. For the fiscal year 2008/2009 the Central Government generated an estimated fiscal deficit of $704.5 million, a decrease of $36.6 million compared with the deficit of $741.1 million in 2007/2008. The decrease in the deficit was the result of an estimated $101.2 million increase in current revenue, which overshadowed the $64.6 million increase in expenditure. There were negligible loans and advances for the review period, while amortization payments amounted to $470.1 million, an increase of $7.1 million when compared with the figure for 2007/2008. At the end of the fiscal year, the overall fiscal deficit net of amortization was estimated at 3.1 per cent of GDP. At December 2008, the stock of national debt stood at an estimated $6,035.2 million or 80.0 per cent of GDP. This represented an increase of $357.3 million or 6.3 per cent over the 2007 figure. Domestic debt stood at $4,517.9 million or 60.1 per cent of GDP, an increase of $449.4 million over the 2007 total. The level of foreign debt was $1,517.3 million or 20.2 per cent of GDP, a fall of $92.1 million. Notwithstanding the challenges of the global financial and economic crisis, the domestic financial and banking sector continued to perform fairly well during 2008. Credit to the non-financial private sector grew by 11.8 per cent compared with 5.1 per cent the year before. 2 Â&#x201E;Â&#x201E;Â&#x201E;

Executive Summary

Personal loans, much of which were driven by new mortgages, expanded by 7.8 per cent while loans to the distributed sector rose by 3.6 per cent. Credit to statutory bodies and financial institutions advanced by 12.7 per cent and 29.4 per cent, respectively. However, loans to central government fell by 8.7 per cent. In line with the fall in economic activity, domestic deposits slowed to 3.5 per cent during 2008, down from the 16.2 per cent seen in 2007. As a consequence, excess liquidity fell below the high levels recorded during the early part of 2008. In light of this, the liquid asset ratio stood at 10.4 per cent, which was slightly above the 9.5 per cent for the corresponding period 2007. The year 2008 was a challenging one for the Barbados Stock Exchange. This was evident by an overall decline in the trading volume of 52.0 per cent and value of 10.0 per cent, when compared with the previous year. In addition, all other indices registered declines. The decline in trading activity coincided with the escalation of the financial crisis in the US economy in the latter part of the third quarter of the year. During 2008, active credit unions totalled thirty-five (35), two (2) less than the thirty-seven (37) recorded at the end of 2007. Total membership declined during the review period by 2.4 per cent to 148,471 persons compared with 151,566 persons in 2007. A total of thirteen (13) new applications were made for exempt insurance and insurance management companies, compared with ten (10) in 2007. Of this total, ten (10) were for exempt companies, while three (3) were for management companies. Analysis conducted using the National Accounts Statistics indicated that nongovernment productivity grew by 2.1 per cent in 2007 after a 1.4 per cent growth in 2006. At the sectoral level, the distribution sector achieved the highest rate of average productivity change of 3.7 per cent, while the financial services sector recorded an increase of 0.5 per cent. On the other hand, the

Barbados Economic and Social Report 2008

manufacturing and accommodation sectors registered declines of 0.9 per cent and 2.2 per cent, respectively.1 Per Capita GDP at factor cost increased marginally by an estimated 0.5 per cent to reach BDS$20.7 thousand (US$10.4 thousand) compared with BDS$20.6 thousand (US$10.3 thousand) in 2007. The rate of population growth decreased to 0.2 per cent in 2008 from 0.3 per cent in 2007. The rate of natural increase fell from 4.8 per thousand in 2007 to 3.9 per thousand in 2008. The natural increase in population, (the difference between births and deaths), was 1,071 persons, compared with 1,324 persons for 2007. The Ministry of Education and Human Resource Development (MEHRD) continued to place emphasis on the development of education through curriculum reform initiatives. These included: the Education Sector Enhancement Programme (ESEP); increased access to early childhood education; the National Reading Plan; as well as the domestic programme and other ongoing initiatives. At the end the fiscal period 2007/2008, 27,094 students were enrolled at primary schools, 1.9 per cent below the 27,606 enrolled the previous year. Of this number, 13,700 were 1

The survey for the National Productivity Indicator was carried out during 2008 and reported on productivity data for 2006 and 2007

Executive Summary

males and 13,394 were females. This continued the trend of more males being enrolled at the primary level than females. In this case, 306 more males than females were enrolled in the academic year 2007/2008, while at the secondary level, 21,382 were enrolled. Of this figure, 10,674 were males and 10,708 were females. During 2008, the Ministry of Health pursued a number of critical reform initiatives contained in the Barbados National Strategic Plan for Health with technical assistance provided by the Pan American Health Organisation (PAHO) and the 9th European Development Fund. These initiatives addressed the management of chronic non-communicable diseases, family health services and strengthening health systems. Additionally, support was secured through a second World Bank Project to strengthen the HIV/AIDS Programme. Barbados continued to demonstrate good indicators for: infant mortality; maternal mortality and life expectancy at birth; access to clean drinking water; immunisation coverage; and maintaining the low incidence of communicable diseases. Barbados remained quite a safe and peaceful country during 2008 even though reported crime increased marginally by 1.0 per cent in contrast to a 4.0 per cent reduction in 2007. The total number of reported crimes stood at 8,982, which represented an increase of sixtynine (69) cases over 2007.

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Barbados Economic and Social Report 2008

I. International Economic Developments

I. INTERNATIONAL ECONOMIC DEVELOPMENTS OVERVIEW World economic events in 2008 were marred by the onset of a global economic and financial crisis which first emerged in 2007. The year saw the freezing of credit markets; stock markets crashing; and a sequence of insolvencies that threatened the entire international financial system. In response, the world saw massive liquidity injections by major central banks and a variety of stop-gap fiscal measures by governments, which proved inadequate to contain the crisis. These fiscal responses were robust as evidenced by the $700 billion rescue package introduced by the United States and the $460 billion by European governments during the review period. Other developing and emerging economies, such as China and India, also responded with their own stimulus packages as the contagion spread to these markets. Preliminary estimates showed the world economy to have grown by 3.4 per cent, compared with 5.2 per cent at the end of 2007. This slower rate of growth was reflective of declines in the markets of advance and emerging economies. Within the Western Hemisphere, the U.S. economy grew by an estimated 1.1 per cent compared with 2.7 per cent in 2007. Contributing to this performance was the weakening of domestic demand, which remained flat over the period. As a result of the downturn in the housing market, household spending fell, while financial markets collapsed. In addition, payrolls shrunk, driving the unemployment rate above 6.0 per cent at the end of 2008. The Canadian economy also suffered a setback due to slower growth in the United States and the effects of real currency appreciation, which slowed net exports. Estimates showed that growth in this economy dropped to 0.6 per cent at the end of 2008, significantly below the 2.7 per cent registered in 2007.

Inside the Euro Zone Region, multiple adverse shocks combined with dampened economic activity, saw growth fall to 1.0 per cent, 1.6 percentage points below the growth rate for 2007. High commodity prices have eroded real incomes and reduced consumption, while a strong Euro and slowing demand from trade partners saw some drag on exports. In the United Kingdom, growth was estimated at 0.7 per cent as that economy fell into recession during the fourth quarter of 2008, due mainly to declines in both business and housing investments. In addition, consumer spending was weak, while credit conditions tightened and employment levels fell. Emerging markets also felt the impact of the global economic downturn as growth in the Asia Pacific Region fell to an estimated 6.0 per cent compared with 7.6 per cent a year earlier. Major emerging economies, such as China and India, witnessed lower growth rates of 9.7 per cent and 7.8 per cent respectively. This was due mainly to lower demand for Asia’s exports, tighter funding conditions and more volatile capital flows. Growth in the Middle East and Central Asia areas continued to be strong in 2008, outpacing global growth for the ninth year in a row. Higher commodity prices, strong domestic demand and credibility of policy framework underpinned expected real GDP growth of 6.5 per cent in 2008. Economic activity in developing regions, such as sub-Saharan Africa and Latin America and the Caribbean (LAC), were not immune to the adverse global environment. In the subSaharan region, growth fell to 5.4 per cent in contrast to 6.9 per cent in 2007. Much of this was a result of greater volatility in commodity prices, declines in private capital inflows, remittances and even aid. Regional growth in the LAC area slowed as a result of the global

I. International Economic Developments

Barbados Economic and Social Report 2008

shock. Estimates pointed to a decline of 4.6 per cent, down 1.0 percentage point from the 5.6 per cent recorded in 2007. This slowdown reflected three (3) main factors: tighter global financial conditions; lower commodity prices; and a sharp weakening in external demand.

the end of 2008, which was above the five-year average of 6.0 per cent. In comparison, the aggregate inflation rate for advance economies stood at 3.6 per cent, which was below the 2.1 per cent five-year average.

INFLATION

In 2008, an estimated 6.0 per cent of the world’s workers were unemployed, which according to the International Labour Organisation (ILO) was up from 5.7 per cent recorded in 2007. This scenario was reflective of the serious downturn in world economic growth during the period, which saw enterprises engaged in downsizing. The unemployment rate in the Developed Economies and the European Union increased during 2008 by 0.7 percentage points to 6.4 per cent. This translated into 32.2 million persons being out of work, an increase of 3.5 million. In the sub-Saharan Africa region, preliminary estimates placed the unemployment rate at 7.9 per cent, unchanged from the year before. The limited linkage of this region to the global financial turmoil seemed to have placed it in a less precarious position.

UNEMPLOYMENT

Despite some easing in commodity prices during the latter part of 2008, global inflation risk remained fairly high across a range of emerging and developing economies. In most advance economies, this risk was reduced given the deflationary impact of the financial turmoil. Much of the global inflation seen during the earlier part of 2008 was due to the surge in commodity, supply disruptions and trade restrictions. However, the latter part of 2008 saw some easing in commodity prices reflecting slower growth in major world markets. While this fall helped to improve CPI developments across a wide range of emerging and developing countries, the threat remained. This was evident by the estimated 9.4 per cent inflation rate at

TABLE 1.1-1 Indicators of Economic Performance in Advanced Economies 2007-- 2008

Real GDP (% Change) Country

2007R

2008E

Unemployment Rate (Annual Avg.) (% Change)

Consumer Price Index (% Change)

2007R

2008E

2007R

2008E

United States

2.0

1.6

4.6

5.6

2.9

4.2

Japan

2.1

0.7

3.8

4.1

n.a

1.6

Germany

2.5

1.8

8.4

7.4

2.3

2.9

France

2.2

0.8

8.3

7.7

1.6

3.4

Italy

1.5

-0.1

6.2

6.7

2.0

3.4

U.K

3.0

1.0

5.4

2.3

3.8

Canada

2.7

0.7

6.0

6.2

2.1

2.5

SOURCE: IMF World Economic Outlook October 2008

Barbados Economic and Social Report 2008

The unemployment rate in the Middle East region stood at an estimated 9.4 per cent, unchanged from the year before. Reflecting the economic slowdown within the LAC region, the unemployment rate increased slightly during 2008 to 7.3 per cent, from 7.2 per cent a year before. Similarly, unemployment in South-East Asia and the Pacific rose to 5.7 per cent from 5.5 per cent in 2007. This unemployment trend somewhat reflected the slowdown in leading economies such as China and India.

COMMODITY AND NON-COMMODITY PRICES Commodity prices, which grew quite robustly in 2007, fell sharply during midNovember 2008. This fall reflected a classic response of commodities to the slowing in global growth. In the summer of 2008, energy prices were 80.0 per cent higher than a year earlier, while non-energy prices were 35.0 per cent higher. Most of the increases seen in nonenergy commodity prices came from grains (up 60.0 per cent); fats and oils (up 34.0 per cent); and fertilizers (up 140.0 per cent). On the other hand, crude oil prices dropped from $143/bbl in early July to less than $50/bbl in mid-November. Weaker demand, appreciation of the dollar, and concerns about demand prospects in the wake of the financial turmoil were major reasons for the fall in oil prices.

GLOBAL FINANCIAL MARKET DEVELOPMENTS During 2008, confidence in the global financial institutions was shaken by the near collapse of several key establishments. The combination of large losses, falling asset prices, and a deepening economic downturn created uncertainty regarding the viability of the financial system. Since April 2008, monetary and

I. International Economic Developments

financial conditions tightened, which led to increased market risk. The deterioration in the financial markets of the United States and Europe saw significant intervention from central banks in the form of huge capital injections to boost the liquidity of banks. However, at the end of 2008, market conditions remained mixed. Emerging markets remained fairly resilient during the early part of the financial collapse but later in the period experienced increased risk. This heightened threat was as a result of a retrenchment in short-term capital inflows to emerging markets, which exerted pressure on local markets and sharply raised the cost of credit. This, together with slowing global growth, created a challenging environment for some emerging economies.

FOREIGN DIRECT INVESTMENT1 Preliminary data for 2008 indicated that for many developed countries, Foreign Direct Investment (FDI) flows fell by 32.5 per cent, mainly as a result of the protracted and deepening problems affecting financial institutions. Inward flows to countries, such as Finland, Germany, Hungary, Italy and the United Kingdom, declined during 2008 as transnational corporations (TNCs) saw decreased earnings. Dampening effects on cross-border mergers and acquisitions also accounted for the depressed FDI flows. In developing and transition economies, preliminary estimates suggested that FDI inflows were more resilient. During 2008, FDI flows grew by an estimated 4.0 per cent, which was much lower than the over 20.0 per cent growth seen in 2007. Inflows to Africa grew by 16.8 per cent, while those to Latin America and the Caribbean, and the Asian region grew by 12.7 per cent and 3.3 per cent respectively. 1

Information provided by UNCTAD.

Barbados Economic and Social Report 2008

II. Regional Economic Developments

II. REGIONAL ECONOMIC DEVELOPMENTS OVERVIEW Economic growth in the Caribbean slowed as regional economies were confronted with the global financial and economic crisis. Although there was improvement in the collection of revenues generated from exports, expenditure on various stimulus packages contributed to a widening of the current account deficits. Activity in the financial services sector also slowed amidst uncertainty in the US financial market. The agricultural sectors throughout the region struggled to overcome the lingering effects of the impact of hurricanes during the year. There was slow progress to rehabilitate and replant traditional crops like bananas, cocoa, nutmeg and mace, hence output remained below the desired levels. However, Montserrat and St. Kitts and Nevis were two notable exceptions as agricultural production increased by 10.7 per cent and 23.0 per cent respectively. In St. Kitts and Nevis there was higher output for sweet potatoes, peanuts, sweet-peppers, pumpkins, water melons and cucumbers. Construction activity was driven by both the public and private sectors. The major forms of construction in the private sector were residential buildings, tourism-related construction, and sporting and community development facilities. In the public sector, work continued on roads; air and seaports; hospitals and schools. Regional manufacturing sectors experienced the effects of a weakened US economy that resulted in the reduced demand for products. Manufacturing output in most of the islands contracted as these sectors were compounded further by higher input costs. In Jamaica, the demand for bauxite and alumina production contracted by 1.0 per cent

and led to an accumulation of inventories. However, Belize was an exception with growth of 5.6 per cent, attributed largely to higher production of citrus concentrates and petroleum. Governments across the region continued to exercise prudent fiscal management in order to sustain and maintain debt levels within manageable proportions. Monetary authorities reduced interest rates to limit the contraction of the money supply and to encourage growth throughout the region as a result of the global financial crisis that severely affected the more developed economies like the USA and Europe. Generally, across the region, there was an increase in the cost of living as inflation rates reached approximately 7.0 per cent. Imported inflation contributed significantly to the rise in the cost of living. Inflation was driven by the steep rise in fuel prices and commodity items such as corn, wheat and steel.

REAL GROSS DOMESTIC PRODUCT (GDP) There was generally slower growth throughout the region in 2008 than in the previous year. This reduction in growth was most evident in Antigua and Barbuda and St. Vincent and the Grenadines. St. Lucia and Trinidad and Tobago recorded growth of 2.0 per cent and 3.5 per cent respectively. Anguilla’s economy slowed significantly to approximately 2.0 per cent as a result of the global economic crisis. Growth in the tourism sector also declined as visitor arrivals fell by 10.0 per cent in 2008. The construction sector declined to 6.6 per cent as the reduction in global credit impacted the funding for some construction projects. The annual consumer price index (CPI) increased by 10.2 per cent as food prices rose by double-digits. The current account position deteriorated as public

Barbados Economic and Social Report 2008

finances weakened due to higher levels of spending in 2008. The overall deficit of Anguilla was 4.0 per cent of GDP, with outstanding debt stock reaching 17.0 per cent of GDP at year end. Antigua and Barbuda’s economic growth rate slowed to 4.2 per cent in 2008 compared with 6.1 per cent in 2007. The construction sector was the main contributor to economic growth as it grew by 5.5 per cent. Growth in this sector was driven by private and public sector projects, which included residential housing, commercial property and tourism accommodation. Public sector capital expenditure expanded by 5.5 per cent in 2008. This expansion was mainly due to the rehabilitation and refurbishment of major roads, construction of a car park in St. John’s, and a building for the Transport Board’s headquarters. Within the agricultural sector total output increased by 2.7 per cent due to the expansion in the school meals programme. Production also increased in the crops sub-sector and the fishing and livestock sub-sectors. The tourism sector grew by 4.0 per cent although there was a 9.1 per cent decline in the number of cruiseship passenger arrivals. The sector grew primarily as a result of the 3.0 per cent increase in stay-over arrivals reflected in the 735,504 cruiseship passengers. Manufacturing output increased by 5.0 per cent relative to 8.5 per cent in 2007. The CPI rose by 3.2 per cent because of increases in the price of food, alcoholic beverages, fuel, lighting and tobacco. The fiscal deficit widened as expenditure grew at a greater rate relative to revenues generated from indirect taxes. The Bahamian economy gradually slowed to 1.0 per cent due to a slowdown in foreign financed construction activity and sluggish visitor arrivals. The inflation rate rose due to rising global commodity prices. This was reflected in the categories of furniture and household and food and beverages operations, 8

II. Regional Economic Developments

which rose by 7.0 per cent and 5.2 per cent respectively. The fiscal deficit decreased to $79.9 million, as total revenue and grants increased by 6.7 per cent to $1,279.6 million. Total expenditure and net lending fell by 3.2 per cent to $1,359.5 million. A slow down in credit contributed to a $214.9 million increase in net foreign assets of the banking system. Bank profitability fell as a result of increased operational costs and a rise in the incidents of arrears on loan payments. There was a surplus recorded on the financial and capital account which reflected increases in net equity inflows and the issuance of a $100 million bond. Real GDP in Belize was estimated at 4.3 per cent in 2008. Within the real sector, tourism activity declined by 2.2 per cent while agriculture and manufacturing output increased by 5.5 per cent and 5.6 per cent respectively. Construction activity fell by an estimated 1.6 per cent during the first nine (9) months of 2008. Inflation continued to rise as the CPI increased by 7.2 per cent due to higher commodity prices. The fiscal performance continued to improve as Central Government’s fiscal deficit was reduced to $37.5 million from $176.8 million during the year. Trinidad and Tobago’s economy grew by 3.5 per cent in 2008 compared with 5.5 per cent the previous year. The petroleum sector was the main driver of economic growth for the last five (5) years but growth in this sector slowed to 0.4 per cent. Output in the exploration and production sub-sector fell by 2.0 per cent, whereas natural gas production increased by 3.0 per cent during the review period. Despite the gains in natural gas and refining, the fall in oil production restricted growth in the petroleum sector. In manufacturing, output significantly declined to 4.2 per cent from the 14.7 per cent recorded in 2007. The production of clay bricks, concrete blocks and cement all fell due to the high input costs and the scarcity of labour. In the construction sector output slowed to 3.8 per cent from the 6.6 per cent recorded in 2007. Agriculture performed better as output in the production of vegetables and

Barbados Economic and Social Report 2008

root crops for domestic consumption increased significantly. Citrus production grew and livestock production expanded despite the increase in the cost of feed. Growth in the tourism sector was driven by an increase in the accommodation capacity of the industry. The retail price index rose to 6.2 per cent compared with 4.0 per cent a year earlier. On the fiscal side, provisional estimates of Trinidad and Tobago’s revenue and expenditure indicated surpluses on the recurrent and overall accounts of $1,683.2 million and $6.3 million respectively. Net international reserves increased by 5.7 per cent to $9,249.4 million, equivalent of eleven (11) months of import cover for goods and services. The Jamaican economy contracted by an estimated 0.5 per cent in 2008. The agriculture, forestry and fishing sectors each declined by approximately 10.0 per cent reflecting the largest sectoral fall-off in activity. As major Government projects neared completion output in the construction sector decreased. Total output in the tourism sector expanded approximately 1.0 per cent as the number of stay-over arrivals rose by 4.4 per cent to 1.6 million persons. In manufacturing and construction, the slow down in demand for industrial metals led to a significant accumulation of inventories. Inflation on a moving average basis rose to 16.9 per cent at the end of 2008 compared with the 8.9 per cent recorded in 2007. In Guyana, economic activity was quite moderate with real GDP growth estimated at 3.2 per cent. Growth was high in the transportation, financial, communication sectors and the mining and quarrying sub-sector, while manufacturing output excluding sugar processing and rice milling fell. Indirect taxes were reduced to mitigate the global price increases in the prices of food. The overall balance deteriorated as the total amount of revenues collected decreased, and total expenditure increased due to the expansion in wages and public sector employment. There was also a significant increase in transfer payments or subsidies to the power company to cushion the impact of the high fuel costs.

II. Regional Economic Developments

ORGANISATION OF EASTERN CARIBBEAN STATES (OECS) REAL GDP Within the OECS countries, real GDP growth was experienced in some of the countries while others recorded a contraction. In Dominica, real GDP expanded by approximately 2.0 per cent due primarily to the strong performance in the tourism and construction sectors, as well as in wholesale and retail activity. Grenada’s economy contracted with real output estimated to have decreased to 1.6 per cent. In Montserrat, there was an increase of 3.8 per cent in real GDP due to the continued expansion in construction, transportation, wholesale and retail, mining and quarrying, housing and tourism activity. Real economic growth in St. Kitts and Nevis was estimated at 3.8 per cent. This growth was driven mainly by the surge in construction, transport and financial services. St. Vincent and the Grenadines experienced marginal growth of around 2.0 per cent due to the slow down in the economies of its major trading partners (the United States, United Kingdom and Canada), the adverse market conditions for bananas in Europe, and the rising costs of air transport. In St. Lucia, real GDP grew by 2.0 per cent as a result of strong performances in the agriculture and tourism sectors.

AGRICULTURE In Dominica, revenues in the agriculture sector declined by an estimated 18.0 per cent to $2.9 million as banana output dropped by 10.0 per cent to 6,068 tonnes. In Montserrat, production in the agriculture sector increased by 10.7 per cent with the major crops being sweet potatoes (11.8 per cent), cucumbers (9.2 per cent) and cabbage (7.2 per cent). Agriculture in St. Kitts and Nevis increased by an estimated 23.0 per cent as there were higher output levels in sweet potatoes, peanuts, sweet peppers, pumpkins, water melons and 9

10 2.2

6.8 6.7

Trinidad & Tobago*

12.2

4.8

10.9 12.0 4.0 3.4 2.5 4.1 2.0 4.8 2.6 3.8 4.4 5.0

2006

5.5

6.7

12.0 6.1 3.1 4.3 3.0 1.6 3.1 5.8 1.4 2.7 3.5 3.5

3.5

2.0

2.0 4.2 1.0 0.7 4.3 2.0 1.6 3.2 0.5 3.8 3.8 2.0

3.4

2.9 1.8 0.7 1.4 3.0 2.5 1.7 5.0 11.0 4.0 2.3 1.9

2007 2008P 2004

6.9

3.7

5.0 1.2* 2.5** 6.1 4.4 2.1 4.5 7.8 12.9 2.9 3.6 2.1

2005

7.6

8.8

6.9 2.0 2.5 4.1 2.5 3.6 7.4 12.2 16.0 2.5 4.5 1.5

2007

14.3

8.0

7.9 3.2 4.6 8.0 7.2 3.8 7.1 11.6 16.9 4.8 5.0 7.2

2008P

328.0

75.0

47.9 221.5 1 450.0 551.5 208.6 n.a. n.a. 107.6 1 278.9 7.0 n.a. 298.4

2004

* January to October Stay-Overs * Inflation Rates reflect a deflation of 0.5% at end of 2nd Quarter **January to November Stay-Overs ** Records inflation at the end of October 2008

9.1

8.4 1.5 2.1 7.3 4.6 3.6 4.8 7.5 5.8 3.4 5.3 2.2

2006

Inflation Rate (%)

2004-2008

Caribbean Development Bank Annual Economic Review 2008 CDB International and Regional Briefing Notes 2008 Caribbean Tourism Organisation Central Bank of Barbados Bank of Jamaica

7.0

8.5 5.3 3.5 3.5 1.7 3.5 1.5 1.9 1.6 6.9 3.0 3.8

12.0 5.1 2.5 4.8 4.5 2.6 (3.2) 1.5 1.8 8.0 6.4 4.5

Anguilla Antigua & Barbuda* Bahamas Barbados Belize Dominica** Grenada Guyana Jamaica Montserrat** St. Kitts & Nevis St. Lucia St. Vincent & the Grenadines*

2005

2004

Real GDP Growth Rate (%)

Country

SOURCE:

TABLE 2.1-1

2006

2007

Tourism Arrivals (Stay-overs ‘000) 2008P

280.4

58.1

232.7

49.5

80.8

75.0

219.4

16.6

62.1 41.1 62.6 28.2 238.8 137.2 212.8 219.2 1 514.5 1 276.4 1 369.6 73.5 547.5 570.0 584.8 568.9 183.6 247.2 251.7 184.1 62.664 37.1 63.8 54.9 98.2 58.5 132.8 124.9 116.6 90.1 n.a. 38.6 1 478.7 1 678.3 1 018.0 1 589.0 9.7 3.8 5.2 5.7 n.a. 76.0 92.2 n.a 317.9 160.5 645.5 230.8

2005

Indicators of Economic Performance in Selected Regional Countries

Barbados Economic and Social Report 2008 II. Regional Economic Developments

Barbados Economic and Social Report 2008

cucumbers. St. Vincent and the Grenadines’ agriculture sector suffered a major decline as output fell to 10.3 per cent. Production and exports in the banana sub-sector declined to 9,057 tonnes as Moko disease affected the industry. In addition, input costs were driven up by the global food and oil crisis; reduced retail prices in the UK; and a depreciation in the pound currency. The agricultural sector in St. Lucia expanded by approximately 12.5 per cent as banana production improved.

TOURISM Real output in the tourism sector in Grenada declined by 3.9 per cent as stay-over visitors contracted by 4.9 per cent. During 2008, total visitor arrivals in Montserrat declined as airfares rose and the escalating cost of fuel forced the reduction in the number of flights by a lone flight carrier. Value-added in the tourism sector in St. Kitts and Nevis declined by 10.0 per cent as lower stay-over visitor arrivals were recorded. The tourism sector in St. Lucia recorded an increase in total value-added of 2.0 per cent. Growth in visitor arrivals was seen in the UK, the Canadian, the Caribbean and continental European markets. Growth in the Canadian market was exceptional as visitor arrivals rose by 41.0 per cent due to the strength of the Canadian economy and the appreciation in the currency. In St. Vincent and the Grenadines, the tourism sector declined by 9.0 per cent as visitor arrivals fell by 37.0 per cent, when compared with the corresponding period in 2007.

MANUFACTURING In Dominica, manufacturing output contracted due to the weakened external demand for chemicals, beverages and dental creams. In Grenada, there was an increase of 4.0 per cent in the manufacturing sector, while in St. Kitts and Nevis there was a decline in total output in the sector, which resulted in job losses and a slow down in business activity. In St. Vincent and the Grenadines output in the manufacturing sector contracted by 6.0 per cent.

II. Regional Economic Developments

CONSTRUCTION Significant investments in public and private sector construction in the areas of tourism, sporting and community development facilities, as well as in commercial and residential buildings contributed to the estimated growth rate in St. Kitts and Nevis. Within the construction sector in St. Lucia, Government’s capital works programme and private activity slowed to around 4.0 per cent. In St. Vincent and the Grenadines activity in the construction sector slowed as the costs of steel and the lack of asphalt for the road paving programme impacted negatively on the sector. However, notwithstanding this negative impact, the sector grew at a rate of 9.8 per cent compared with 14.4 per cent in 2007. Grenada recorded its third consecutive decline in the construction sector as value-added contracted by 15.0 per cent. Construction work on major new private investment projects slowed as some projects were put on hold.

FISCAL St. Lucia’s fiscal position improved as savings increased and the overall deficit was reduced. The current account surplus increased by 1.3 per cent of GDP and the deficit fell by 4.0 per cent of GDP. This fall in the deficit was due primarily to a reduction of 17.4 per cent in capital expenditure as major roads were completed, increased collections of hotel occupancy taxes, and higher sales of licences and fees. In Grenada, the fiscal deficit remained high due to over-runs on current transfers and subsidies, and increased spending leading up to the general elections. Dominica’s fiscal position continued to improve as the Government exercised prudent management. Revenues rose by 9.0 per cent to $92.3 million as taxes on domestic goods and services, and taxes on international trade increased by 8.1 per cent and 16.6 per cent respectively. In the financial sector, savings

Barbados Economic and Social Report 2008

and time deposits rose by 8.6 per cent and 5.4 per cent respectively. In St. Vincent and the Grenadines, the overall deficit improved by 48.0 per cent as the Government reduced expenditure on its capital works programme from $121.0 million in 2007 to $97.0 million in 2008.

SECTORAL ANALYSIS TOURISM Regional tourism declined in 2008 due to the slow down in the US economy in the wake of the global financial and economic crisis that negatively impacted the US and European markets. In Anguilla, total visitor arrivals declined by 29.5 per cent as a result of reduced access to air services and a rise in the cost of fuel. In Antigua and Barbuda, tourism grew by 4.0 per cent compared with the 4.9 per cent recorded in 2007. Tourist arrivals decreased by 9.1 per cent to 735,504 arrivals while cruiseship passenger arrivals fell by 14.0 per cent to 494,685 arrivals for the same period in 2007. In the Bahamas, tourist arrivals decreased by 2.2 per cent to 2,373,212 arrivals while cruiseship arrivals fell by 4.3 per cent to 1,484,311 arrivals. Other arrivals increased by 1.6 per cent to 888,901. St. Lucia recorded a significant increase in cruise arrivals of over 60.0 per cent due to the return of a major cruise liner. While Dominica recorded an increase in total visitor arrivals of 1.2 per cent to 240,718 arrivals in spite of a smaller number of cruiseship calls, which dropped from 179 to 133 during 2008. Stay-over visitors to Jamaica rose by 4.4 per cent to 1.6 million as visitor arrivals from the USA increased by 2.2 per cent to 1.0 million and those from the Canadian market rose significantly by 24.8 per cent. In St. Vincent and the Grenadines, total visitor arrivals declined by 37.0 per cent. Of this total, stayover arrivals accounted for 9.0 per cent. 12

II. Regional Economic Developments

CONSTRUCTION Investments by both the public and private sectors resulted in moderate activity in the construction sector in 2008. In the public sector, the rehabilitation and refurbishment of major roads accounted for the activity in the construction sector. Private sector activity primarily resulted from residential housing, commercial building projects and tourism accommodation.

AGRICULTURE Generally, output in the region’s agricultural sectors expanded with the exception of St. Vincent and the Grenadines which suffered one of the worst declines in over ten (10) years as output fell by 10.3 per cent. Banana output was mostly affected as it declined by 37.8 per cent.

SUGAR Sugar production fell in Guyana as a result of adverse weather conditions during the year. Output production in Belize remained low while in Trinidad and Tobago there was no sugar cane cultivation following the decision taken by the Government. In Barbados, sugar production decreased by 9.0 per cent or 3.1 thousand tonnes to 31.6 thousand tonnes in 2008.

BANANAS Within the region, banana production contracted in most of the islands. In St. Vincent and the Grenadines, banana production declined to 9,057 tonnes from the 14,553 tonnes produced in 2007. This decline was as a result of the Moko disease and higher input costs. In Dominica, output volumes declined by approximately 10.0 per cent to 6,068 tonnes which resulted in a contraction in revenues of 18.0 per cent to EC$2.9 million. St. Lucia being an exception, recorded a turnaround in the production of bananas as the sector expanded by 12.0 per cent.

Barbados Economic and Social Report 2008

MANUFACTURING Most regional economies experienced contractions in manufacturing activity during 2008. Output contracted in St.Vincent and the Grenadines by 6.0 per cent, Trinidad and Tobago by 4.2 per cent, St. Lucia by 1.0 per cent, and St. Kitts and Nevis by 4.0 per cent. In Trinidad and Tobago manufacturing in the food, beverage and tobacco sub-sector grew by 12.8 per cent despite the closure of a flour mill to facilitate expansion. Total output in the chemicals and non-metallic materials and related industries contracted by 9.4 per cent and 6.3 per cent respectively. Production of clay bricks, concrete blocks and cement declined due to high input costs and the scarcity of labour.

II. Regional Economic Developments

In Antigua and Barbuda, the Government enacted legislation to allow for greater control and more effective enforcement of anti-money laundering and anti-terrorism. In the Cayman Islands, with the intensification of the global financial crisis, the funds industry struggled to attract new capital, maintain investor confidence and keep the high level of redemption requests from investors down.

ENERGY, MINING

AND QUARRYING

In Jamaica, the mining and quarrying sector contracted by 1.0 per cent as exports to China in the bauxite and alumina market fell. In St. Vincent and the Grenadines, growth in mining and quarrying fell to 1.0 per cent in 2008 from 1.1 percent the previous year.

PETROLEUM PRODUCTS

MONETARY AND FISCAL DEVELOPMENTS

The output of crude petroleum in Trinidad and Tobago slowed by 0.4 per cent while the exploration and production subsector fell by 2.0 per cent. Natural gas production grew by 3.0 per cent during 2008 on account of the additional demand and the two (2) new platforms.

In Trinidad and Tobago, surpluses on the recurrent and overall accounts of TT$1,683.2 million and TT$6.3 million respectively, increased the total amount of money in the Heritage and Stabilisation Fund to TT$463.6 billion or 12.0 per cent of GDP.

RICE

Government revenues in Dominica rose by 9.0 per cent to EC$92.3 million as taxes collected from domestic goods and services and international trade increased.

Rice production in Guyana declined by 1.6 per cent due mainly to the adverse weather conditions that prevailed during the year.

INTERNATIONAL BUSINESS AND FINANCIAL SERVICES The international business sector in the British Virgin Islands was impacted by the global financial crisis. The number of new registered corporations declined by 11.4 per cent, while the number of dissolutions doubled as they increased from 12,477 to 24,286. Licenses and certificates issued to mutual funds decreased by 14.0 per cent, along with captive insurance licenses which fell from six (6) to four (4).

In Guyana, a slow down in revenues and an increase in expenditure deteriorated the overall balance of the Government. Prudent fiscal measures contributed to a further reduction in the debt-to-GDP level from 94.2 per cent to 93.8 per cent at the end of 2008. Jamaica formulated a fiscal and debt sustainability programme supported by the multilateral banks to streamline its fiscal operations and to improve its debt position. In St. Vincent and the Grenadines, recurrent revenues increased by 11.2 per cent as VAT receipts yielded 3.9 per cent more 13

Barbados Economic and Social Report 2008

than the budgeted amount. In St. Lucia, there was a substantial increase in revenues from corporation and income taxes. In St. Kitts and Nevis, fiscal performance was mixed as

II. Regional Economic Developments

the current account surplus decreased to EC$0.1 million from EC$9.0 million in 2007 due to an increase in personnel emoluments and wages.

Barbados Economic and Social Report 2008

III. The Barbados Economy

III. THE BARBADOS ECONOMY A. THE REAL SECTOR OVERVIEW During 2008, the Barbados economy grew by an estimated 0.7 per cent, reversing five (5) consecutive years of GDP growth above 1.0 per cent. This growth was substantially lower than the 3.3 per cent expansion registered in 2007. The pass through effects of higher oil and commodity prices combined with the sharp downturn in global economic activity, which affected tourism value-added, contributed to the decline in real output growth. Real economic activity was driven by modest performance in the non-traded sector which expanded by 1.2 per cent. The main source of expansion in the non-traded sector was mining and quarrying which grew by 2.5 per cent, while government business and other services; and transport, storage and telecommunications contributed marginally to overall economic growth. In contrast, growth in the traded sector declined by an estimated 1.1 per cent. In response to the slowing economy and the increased threat from the global economic downturn, the Barbados Government commissioned the drafting of a Short and Medium-Term Action Plan (See Box 1.1). This Action Plan recommended a set of policy actions to be taken to ensure that Barbados weathered the crisis and emerged a stronger and more competitive economy. Per Capita GDP at factor cost increased marginally by an estimated 0.5 per cent to reach BDS$20.7 thousand (US$10.4 thousand) compared with BDS$20.6 thousand (US$10.3 thousand) in 2007.

increase of 3.1 per cent in 2007. Preliminary data suggests that this outturn was attributed to declines in arrivals in both the long-stay and cruise segment which contracted by 2.0 per cent and 0.1 per cent, respectively. During 2008, sugar production declined by an estimated 9.0 per cent or 31.6 thousand tonnes. However, value-added from non-sugar agriculture increased by 3.7 per cent, as a 36.2 per cent expansion in fish catches, more than compensated for the reduction in milk and chicken production which registered declines of 3.0 per cent and 0.1 per cent, respectively. Manufacturing output during the review period declined by 1.9 per cent. This outturn was attributed to the spiraling price of oil in the first half of 2008 combined with the slowing demand for goods worldwide as a result of the global economic downturn. All sub-sectors of manufacturing witnessed declines except for the chemicals and electronic component subsectors which expanded by 3.6 per cent and 6.2 per cent, respectively. The international business and financial services sector continued to exhibit moderate growth despite the challenges posed by the world financial and economic situation. During the review period, there were an estimated 579 new licences issued compared with 764 in 2007, representing a 13.9 per cent decrease in new entities licensed. New registrants to the International Business Companies (IBCs) stood at 481 while the number of New Societies with Restricted Liabilities (SRLs) licensed was 83.

THE NON-TRADED SECTOR THE TRADED SECTOR Real value added in this sector slowed to its slowest pace since 2005, recording a decline of 1.1 per cent. This outturn was attributed to a fall off in tourism value-added which fell by an estimated 1.7 per cent, after recording an

The non-traded sector grew by 1.2 per cent in 2008, a rate significantly below the average rate of growth of 4.7 per cent registered in the last four (4) years. Growth in the sector was constrained by the decline in tourism activity and higher commodity prices.

Barbados Economic and Social Report 2008

During the review period, construction activity declined by 3.4 per cent as a result of the completion of major projects. There was also a 1.4 per cent decline in the production of electricity, gas and water sub-sector, while slower growth was recorded for wholesale and retail (0.7 per cent); transport, storage and communication (2.7 per cent); and business and other services (2.4 per cent). While activity in the government sub-sector remained unchanged, improvements were however recorded in mining and quarrying which grew by an estimated 2.5 per cent.

CONTRIBUTION TO GDP In 2008, four (4) sectors of the economy of Barbados contributed to the bulk of real GDP. Provisional data indicated that these sectors comprised finance, insurance and business which contributed $1,079.8 million or 19.0 per cent; government services $971.2 million or 17.1 per cent; tourism $759.1 million or 13.4 per cent and wholesale and retail $961.2 million or 16.9 per cent. Other significant contributions to GDP came from manufacturing $384.7 million or 6.8 per cent; construction $365.8 million or 6.4 per cent and general services $366.0 million or 6.4 per cent. The contribution to GDP made by electricity, gas and water remained relatively constant at $214.4 million. Sugar contribution to GDP during the review period rose by $3.4 million, to record $34.2 million while non-sugar agriculture fell by 3.3 per cent to register $127.2 million.

EXPENDITURE ON GDP Provisional data indicated that Gross Domestic Product at market prices increased in 2008 by 8.5 per cent to an estimated $7,399.6

16 Â&#x201E;Â&#x201E;Â&#x201E;

III. The Barbados Economy

million when compared with $6,818.7 million recorded in 2007. After adjusting for indirect taxes and subsidies, Gross Domestic Product at factor cost was estimated to have increased by 8.8 per cent to $6,061.4 million. During 2008, consumption expenditure increased by 11.6 per cent to record an estimated $6,223.5 million. Government expenditure accounted for $1,935.8 million of total consumption, an increase of approximately 12.5 per cent while personnel expenditure accounted for $4,287.8 million, an increase of approximately 11.2 per cent over the figure recorded in 2007. Gross capital formation amounted to an estimated $1,605.8 million, a decrease of 3.6 per cent over 2007. This outturn was attributed to a 8.5 per cent decline in finished capital stock which fell from $817.0 million recorded in 2007 to $747.7 million in 2008. Similarly, private building activity declined marginally by 0.2 per cent to record a value of $765.6 million. In contrast, public building activity increased by 13.4 per cent during the review period to record a value of $78.8 million. Exports of goods and services fell by an estimated 1.4 per cent to register $3,960.5 million compared with $4,016.1 million recorded a year earlier. As in the previous years, imports of goods and services continued its upward trend and increased by 8.1 per cent to record $4,707.8 million.

PER CAPITA INCOME Per capita GDP at factor cost increased marginally by an estimated 0.5 per cent to reach BDS$20.7 thousand (US 10.4 thousand) compared with BDS$20.6 thousand (US 10.3 thousand) in 2007.

Barbados Economic and Social Report 2008

III. The Barbados Economy

Box 1.1 -- BARBADOS’ SHORT AND MEDIUM-TERM ACTION PLAN – A RESPONSE TO THE GLOBAL CRISIS This box discusses the Short and Medium-Term Action Plan as recommended by the Special Working Group. Background In a response to the unfolding financial and economic crisis and the slowdown in the domestic economy, Government at its latest Public/Private Sector Consultation held in October 2008, announced the establishment of a Special Working Group on the Economy, comprising members from Government, the Private Sector, the Union, the Central Bank and the Caribbean Development Bank. The group met and out of these meetings a Barbados Short and Medium-Term Action Plan was drafted. The Short and Medium-Term Action Plan Within the Action Plan, the measures proposed by the Special Working Group were two-fold in nature. The first was to highlight the need for further institutional changes that will facilitate increased productivity and competitiveness and the second was to stress the need to have the correct macroeconomic policy measures that would ensure economic and social stability. In this regard, the policies and actions were grouped into three main categories: general, macroeconomic and sectoral. General Measures: Actions and policies in this category were designed to build public confidence, improve the efficiency of public administration and to facilitate doing business in the country. This policy stance would help to enhance Barbados’ reputation as a business location and make the economy more competitive. Macroeconomic Measures: These were designed to prevent a sharp fall in economic activity and to protect employment, the balance of payments and the exchange rate. Sectoral Measures: These measures were based on the plans that have or are being developed, by the various productive sectors, to cope with the anticipated unfavourable economic conditions. General Measures Under this category, the actions to be taken were centered around -- maintaining public confidence through enhanced communication and consultation; frequent meetings of the social partnership; pushing forward public sector reform in order to bring about improvements in the country’s competitiveness; and enhancing the level of project management and implementation by adopting procedures that will avoid bottlenecks and delays in project implementation. It was the recommendation that a sub-Committee of Cabinet be established to deal with this. In addition, these general measures spoke to strengthening citizen and visitor security; and the establishment of standards for professional services. Macroeconomic Policy Measures A major policy proposal was for the introduction of a fiscal stimulus that would mitigate the effects of the expected contraction in economic activity in the near and medium-term. It was recommended, given the limited fiscal space of government (the fiscal deficit at the end of the period 2008/09 stood at an estimated 3.1 per cent of GDP), that a fiscal stimulus of between $80 to $120 million or 1.0 per cent to 1.5 per cent of GDP be considered. An important part of the stimulus would be directed to projects with high social and environmental impact and activities that are capable of replacing some of the lost employment in the construction

Barbados Economic and Social Report 2008

III. The Barbados Economy

sector. Enhancing the social safety net in the event of rising unemployment was suggested as a means to help persons who may be out of work temporarily. Part of this assistance would include support for increased training from government’s training fund. There were also proposals for improvements in tax administration via the speedily implementation of the proposed Central Revenue Authority; continued prudent monetary policy which should remain flexible so as to respond to the adverse impact of increased consumer spending on the international reserves; proper reserve management and the need for action to protect the fixed exchange rate via an adequate cushion of foreign exchange reserves; continued monitoring of the financial system and the need for some strengthening of the regulatory framework that relates to non-banking financial institutions, which are becoming increasingly important actors in the financial system; and the need to refocus emphasis on a wages and incomes policy that is based on productivity gains and the ability to pay.

Sectoral Measures

SOURCE: Central Bank of Barbados

An important element of the Action Plan spoke to ensuring stability within the major sectors such as – tourism; international business; agriculture; construction; manufacturing; and small and micro-business. Regarding tourism, it was proposed that measures be put in place to limit any decline in tourist numbers. This should be done through the defense of airlift; renewing, intensifying and re-defining promotional programmes, incentives, targeting non-traditional markets; and expanding the tourism product by promoting heritage tourism and promoting Barbados as a flystay-cruise hub and health and wellness centre. As the second most important sector, international business was identified for special attention that focused on increase investment and promotional support, and administrative improvements within the public sector. The recommendation was for Barbados to make every effort to diversify its product and services to take advantage of new business opportunities and meet emerging ones. While the contribution of agriculture to growth has been reduced overtime, the focus on this sector, for food security reasons, was justified given the need for Barbados to feed itself in the event the crisis worsens. In this respect, the action plan spoke to product diversification, strengthening marketing arrangements, supporting the introduction of new technologies, and developing new and stronger linkages with manufacturing and tourism. It was suggested that for construction, Government should accelerate the implementation of projects funded by the multinational development banks in an effort to prevent further layoffs in the sector. In focus also was energy, which it was suggested should become more efficient and driven by the development of viable renewable sources. Taken together the argument was made for greater support to the manufacturing and small business sectors. The issue of patent and copy right protection; establishment of a facility for equipment leasing and sharing; reduction of costs of doing business such as rent; and facilitating trade name registration, were some of the recommendations going forward. 18

87.1

Construction

1023.3

143.1

175.5

85.1

9.2

4.8

5.6

4.2

6.3

9.6

6.1

2.8

1.8

5.0

2.2

9.3

(8.1)

(5.4)

1063.2

148.1

183.4

89.9

10.0

215.7

98.8

38.9

787.1

63.2

164.4

34.7

16.4

276.1

3.9

3.5

4.5

5.6

8.0

5.3

13.5

(0.6)

5.5

2.1

(2.2)

6.9

11.3

0.5

2005 $M % change

SOURCE: Central Bank of Barbados Ministry of Economic Affairs and Development

GDP

Government Services

Services

Business & Other

Communications

Transport, Storage &

Mining & Quarrying

204.9

39.1

Electricity, Gas & Water

Wholesale & Retail Trade

746.1

61.9

NON-TRADED SECTOR

Manufacturing

168.2

32.5

Non-Sugar

Tourism

14.8

Sugar

277.2

TRADED SECTOR 4.5

2004 $M % change

SECTOR OF ORIGIN

1097.1

152.6

193.5

96.0

9.7

227.3

98.9

42.7

820.7

63.9

164.3

33.7

14.5

276.4

3.2

3.0

5.4

5.2

(3.1)

5.3

(0.4)

9.8

4.3

1.1

1.6

(2.9)

(12.0)

0.1

2006 $M % change

1134.7

157.1

203.5

101.4

9.1

240.7

98.9

43.1

853.9

63.1

169.5

34.7

14.6

280.8

3.4

3.0

5.2

5.6

(5.9)

5.9

0.1

1.1

4.1

(2.9)

3.2

2.8

0.9

1.6

2007R $M % change

TABLE 3.1-1 Estimates of Real Gross Domestic Product and Real Growth Rates 2004-2008 (Base: 1974 = 100)

1142.1

161.8

208.5

104.2

9.3

242.4

95.5

42.5

864.3

61.8

166.7

35.8

13.6

277.8

0.7

3.0

2.4

2.7

2.5

0.7

(3.4)

(1.4)

1.2

(0.4)

(1.7)

3.2

(6.9)

(1.1)

2008P $M % change

Barbados Economic and Social Report 2008 III. The Barbados Economy

3,310.5

3,340.4

3,162.6

3,552.2

3,950.1

4,013.6

4,145.5

3,856.5

4,287.8

2000R

2001R

2002R

2003R

2004R

2005P

2006R

2007R

2008

1,935.8

1,720.4

1,360.3

1,293.5

1,199.5

1,248.5

1,218.6

1,142.6

1,084.3

1,026.7

6223.6

5,576.9

5,505.8

5,307.1

5,149.6

4,800.7

4,381.2

4,483.0

4,394.8

4,373.2

Total

13.7

11.5

10.1

9.7

9.2

(5.8)

(15.6)

(44.7)

7.4

29.4

Stocks of Finished Goods

1,605.8

1,665.4

1,699.9

1,493.0

1,333.8

1,115.3

1,029.2

1,001.8

1,161.0

1,192.9

Total

3,960.5

4,016.1

3,420.3

3,188.3

2,753.3

2,566.7

2,353.1

2,445.0

2,518.9

2,551.8

Exports of Goods and Services

# Central Government only

747.7

817.3

850.4

718.7

720.6

581.3

518.4

530.2

574.4

601.1

Finished Capital Stock

* Land Development included

765.6

767.1

778.2

712.4

542.3

422.7

357.7

397.8

467.0

444.4

*Private Building Activity

FC: Factor Prices

78.8

69.5

61.2

53.1

61.6

117.1

168.7

118.5

112.3

118.0

#* Public Building Activity

Gross Capital Formation

MP: Market Prices

Barbados Statistical Service

3,346.5

1999

SOURCE:

Personal

Year

Government

Consumption Expenditure

11,789.9

11,258.4

10,625.9

9,984.2

9,236.8

8,482.8

7,763.5

7,929.9

8,074.7

8,117.9

(4,707.8)

(4,354.8)

(4,252.2)

(4,013.0)

(3,571.9)

(3,093.0)

(2,811.3)

(2,821.5)

(2,957.1)

(2,822.3)

7,082.1

6,903.7

6,373.7

5,971.2

5,664.9

5,389.8

4,952.2

5,108.4

5,117.6

5,295.6

Gross Imports of Expenditure Expenditure Goods and on GDP on GDP Services (MP)

TABLE 3.1-2 Composition of Expenditure on Gross Domestic Product 1999-2008 (Current Prices)

(1,406.2)

(1,244.9)

(1,117.4)

(1,031.1)

(1,032.4)

(1,055.1)

(886.2)

(875.3)

(891.8)

(825.3)

Net Indirect Taxes

5,675.9

5,658.8

5,256.3

4,940.1

4,632.5

4,334.7

4,066.0

4,233.1

4,225.8

4,470.3

Domestic Product at (F.C.)

($ M)

Barbados Economic and Social Report 2008 III. The Barbados Economy

Barbados Economic and Social Report 2008

B. BALANCE OF PAYMENTS3 OVERVIEW Barbados’ external position worsened in 2008, due to rising oil prices during the first half of the year, which inflated the value of fuel imports. This, combined with lower travel receipts, expanded the external current account deficit. In addition, there was a reduced surplus on the capital and financial account as a result of higher capital outflows than was recorded in 2007. Consequently, this led to a contraction in the Net International Reserves (NIR).

CURRENT ACCOUNT At the end of the year, the balance on the external current account was in deficit to the extent of $767.2 million or approximately 10.4 per cent of GDP (at market prices). This increase was substantial when compared with the deficit of $353.8 million recorded at the end of 2007. Sluggish growth in travel receipts and an increase in retained imports contributed significantly to this deficit. Modest growth in domestic exports of 1.7 per cent was offset by an increase of 13.9 per cent in retained imports. The merchandise trade deficit rose by 17.0 per cent to $2,447.5 million, compared with $2,092.6 million in the previous year. Total exports (fob) amounted to $916.2 million, a 4.3 per cent decrease compared with $957.3 million in 2007. In 2008, the value of domestic exports rose marginally by 1.7 per cent, to reach $531.2 million compared with the $522.3 million recorded in 2007. There was a 10.5 per cent decrease in the exports of chemicals while exports of electronic components and food and beverages rose by 9.8 per cent and 6.8 per cent, respectively. Receipts from goods procured in ports increased by 14.2 per cent while goods for processing fell by 42.5 per cent. Receipts from sugar exports decreased by $1.1 million or 2.5 per cent, to $45.1 million. The value of total imports (cif) in 2008 increased by 10.6 per cent to $3,784.2 million compared with $3,420.5 million in 2007. Retained imports constituted 89.8 per cent of total imports

III. The Barbados Economy

or $3,399.1 million, a 13.9 per cent increase over the $2,985.6 million recorded in 2007. The increase in retained imports was primarily a result of an increase in the imports of intermediate goods by 28.7 per cent (owing to sharp increases in oil prices witnessed in the first half of the year) and consumer goods by 5.8 per cent. The imports of capital goods fell by 0.9 per cent or $5.5 million to $607.1 million at the end of 2008. Tourism receipts in 2008 were estimated at $2,223.4 million, an increase of 1.0 per cent compared with $2,200.4 million in 2007. Net receipts from the export of services rose marginally by 0.6 per cent to $1,659.0 million compared with $1,649.5 million recorded in 2007. In addition, current transfers decreased by $38.5 million to $252.2 million compared with $290.7 million in 2007.

CAPITAL AND FINANCIAL ACCOUNT The capital and financial account recorded a surplus of $422.7 million in 2008, a 52.5 per cent decrease compared with the surplus of $889.6 million for 2007. The reduction in net inflows was driven by additional debt service payments, repatriation of profits and large tourism-related outflows. Net long-term private investment fell by 66.1 per cent to $495.1 million compared with $1,460.9 million in 2007. On the other hand, net short-term outflows were estimated at $71.6 million relative to outflows of $476.9 million in 2007. Net long-term public sector flows were estimated at an outflow of $66.4 million, compared with outflows of $144.3 million in 2007.

NET INTERNATIONAL RESERVES (NIR) At the end of 2008, the NIR fell by 15.7 per cent to $1,895.2 million compared with $2,247.1 million at the end of 2007. Higher retained imports combined with lower travel receipts and increased capital outflows led to this contraction in the NIR. As a result, the import reserve cover for goods stood at 20.1 weeks, a decrease of 9.9 weeks over that of 2007. 3

The Source of the Balance of Payments data is the Central Bank of Barbados.

Barbados Economic and Social Report 2008

III. The Barbados Economy

TABLE 3.2-1 Balance of Payments 2003-2008 ($ M) 2003

2004

2005

2006

2007P

2008E

-335.2

-678.5

-785.7

-534.4

-353.8

-767.2

Total Exports (fob) of which Domestic Exports

499.4

556.4

720.0

887.8

957.3

916.2

329.2

346.9

422.1

497.1

522.3

531.2

Imports (CIF) of which Retained Imports

2390.6

2825.9

3208.9

3258.1

3420.5

3784.2

2220.5

2616.3

2911.0

2867.3

2985.6

3399.1

Services (Net) of which Tourism Income Transfers

1144.3 1306.7 -184.4 332.7

1173.3 1335.5 -207.9 319.9

1280.2 1602.1 -297.2 370.3

1449.9 1904.7 -399.9 432.2

1649.5 2200.4 -201.4 290.7

1659.0 2223.4 -230.9 252.2

644.3 66.8 375.9

350.7 -12.8 -340.6

629.5 18.0 -138.1

647.4 -30.4 82.6

889.6 20.3 556.1

422.7 -7.4 -351.9

Net Official financing

0.0

IMF Credit Other M.A.2 Other F.I.3

0.0 0.0 0.0

Change in Foreign Reserves (CBB Basis) (-increase/+decrease) -375.9

340.6

138.1

-82.6

-556.1

351.9

Adjusted by: Commercial Banks’ Position (net) IMF Resources

239.0 0.0

-27.7 0.0

-184.2 0.0

125.1 0.0

202.6 0.0

35.7 0.0

Change in NIR (IMF Basis) (-increase/+decrease) -136.9

312.9

-46.1

42.5

-353.5

387.6

Current Account

Capital and Financial Account E and O1 Overall Surplus/Deficit

SOURCE: Central Bank of Barbados 1: Errors and Omissions 3: Financial Institutions

2: Monetary Authorities

Barbados Economic and Social Report 2008

DIRECTION OF TRADE4 EXPORTS Domestic exports during 2008 were estimated at $526.3 million, representing an increase of 2.5 per cent or $12.8 million over the $513.5 million recorded for 2007. The primary market for Barbados’ domestic exports continued to be CARICOM, with a market share of 51.7 per cent. Exports to this group of countries increased marginally by 0.1 per cent, to reach $271.9 million compared with the $271.6 million recorded for 2007. Within CARICOM, Trinidad and Tobago, St. Lucia and Jamaica were the major importers of Barbados’ domestic exports, absorbing $78.0 million (28.7 per cent), $41.3 million (15.2 per cent) and $30.4 million (11.2 per cent) respectively.

III. The Barbados Economy

$1,274.4 million of imports compared with 35.8 per cent or $1,205.9 million in 2007. CARICOM was the second largest source of imports, accounting for 25.4 per cent of total imports. Barbados’ imports from the region increased by $39.9 million or by 4.7 per cent to $885.5 million. The third largest supplier of imports in 2008 was the UK, with a market share of 5.3 per cent valued at $185.0 million. Total imports from Germany and Venezuela decreased by $5.3 million and $0.3 million, respectively. Increased imports were recorded for Canada by $62.8 million and Japan by $7.6 million. Imports from the aggregated group ‘All Other Countries’ decreased during 2008 by $16.5 million. Figure 2

The US and UK were the second and third largest markets, for Barbados’ domestic exports. Exports to the US were estimated at $81.5 million, a marginal increase of 1.4 per cent when compared with the $80.4 million recorded for 2007. Exports to the UK increased to $67.2 million from the $55.5 million reported at the end of 2007. Figure 1

SOURCE: Barbados Statistical Service

Figure 3

SOURCE: Barbados Statistical Service SOURCE: Barbados Statistical Service

IMPORTS During 2008, total imports (cif) stood at $3,493.0 million, an increase of $127.9 million or 3.8 per cent. The US continued to be the primary extra-regional supplier and the largest trading partner overall, accounting for 36.5 per cent or

C. PUBLIC FINANCE OVERVIEW For the fiscal year 2008/2009 the Central Government generated an estimated fiscal 4

The source for the Direction of Trade figures is the Barbados Statistical Service.

Barbados Economic and Social Report 2008

deficit of $704.5 million, a decrease of $36.6 million compared with the deficit of $741.1 million in 2007/2008. The decreased deficit was the result of an estimated $101.2 million increase in current revenue which overshadowed the $64.6 million increase in expenditure. There were negligible loans and advances for the review period, while amortization payments amounted to $470.1 million, an increase of $7.1 million when compared with 2007/2008. At the end of the fiscal year, the overall fiscal deficit net of amortization was estimated at 3.1 per cent of GDP.

FISCAL POLICY FRAMEWORK The overall fiscal policy framework was challenged by a deterioration in the global economy, which had an adverse impact on the domestic economy during 2008. In addition, Government was faced with a high national debt and a growing fiscal deficit which narrowed its fiscal space. Guided by the yearly “Financial Statement and Budgetary Proposals”, which was presented in July 2008, Government set out a fiscal framework which looked to ensure macroeconomic stability by maintaining a fiscal deficit of 3.0 per cent of GDP. To this effect, the new social and economic expenditure measures that were contained within the Financial Statement were buttress by new revenue generating policies.

REVENUE Total revenue generated in 2008/2009 rose by an estimated 4.1 per cent to $2,553.2 million compared with $2,452.0 million collected in 2007/ 2008. This increase in revenue was however significantly lower than the 10.3 per cent growth seen in 2007/2008. The increase in total current revenue reflected increased collections in both tax and non-tax revenue. During the review period, tax revenue was estimated to have grown by 3.7 per cent or $86.9 million to $2,441.8 million. This outcome reflected increases in taxes collected on goods and services, which rose by $43.0 million or 4.1 per cent; taxes on property, which grew

III. The Barbados Economy

by $30.6 million or 29.7 per cent; and taxes on international trade, which grew by $28.7 million or 14.5 per cent. Alternatively, taxes collected on income and profit fell by $39.6 million or 4.3 per cent. Non-tax revenue in 2008/2009 was estimated at $103.9 million compared with $93.1 million in 2007/2008, a $10.8 million or 11.6 per cent increase. In the category of direct taxes, corporation tax fell by an estimated $33.6 million or 6.6 per cent while income tax rose by $32.4 million or 10.7 per cent. On the other hand, in the area of indirect taxes, VAT revenue rose by $32.9 million or 4.2 per cent and tax on other goods and services by $8.2 million or 12.5 per cent.

EXPENDITURE Total expenditure over the fiscal year 2008/ 2009 was estimated at $3,257.7 million, an increase of 2.0 per cent over the $3,193.1 million spent during the period 2007/2008. Of this total, current expenditure inclusive of amortization stood at an estimated $3,542.5 million, $101.1 million more than was observed in 2007/2008. On the other hand, capital expenditure (inclusive of net lending) totalled $185.2 million, a decline of $52.9 million in contrast to the $238.1 million spent during the Government’s financial year 2007/2008. Of the components making up current expenditure, wages and salaries including national insurance contributions stood at $813.2 million or 26.5 per cent of current expenditure. This figure represented $4.3 million more than the $808.9 million recorded for the previous fiscal year. Expenditure on goods and services fell to $335.7 million from the $361.8 million in 2007/ 2008. Current transfers and subsidies, which represented 35.7 per cent of current expenditure, rose by an estimated $119.5 million to $1,097.3 million, reflecting a substantial increase in grants to public institutions. Debt service payments for the period under review were estimated at $826.2 million compared with $806.5 million for the previous fiscal year. Total amortization stood at

Barbados Economic and Social Report 2008

$470.1 million or 56.9 per cent of overall debt service, while interest payments amounted to $356.1 million, an increase of $12.6 million. Domestic debt service, at the end of the period April to December, stood at approximately $490.9 million of which amortization was $270.3 million and interest payments $220.6 million. Foreign debt service amounted to an estimated $134.0 million. Of the amount going to service external debt, $74.5 million was for amortization and $59.5 million went towards interest payments. Government’s capital expenditure fell by an estimated $54.1 million during 2008/2009 to reach $184.0 million. Of the amount spent, an estimated $89.6 million went towards capital formulation compared with $87.8 million during the previous fiscal period; $88.5 million went to capital transfers, a decline of $53.9 million; and $5.9 million went to acquisitions, an increase of $0.9 million.

FINANCING The fiscal deficit of $704.5 million was financed largely from domestic sources totalling $648.6 million, while foreign financing amounted to $55.9 million. The primary sources of domestic financing were Debentures, $478.6 million and Treasury Bills, $150.0 million. Of the foreign financing components, $55.9 million went to project financing while there was no nonproject financing. The main sources of project financing were: the Inter-American Development Bank, $35.3 million; the World Bank, $9.5 million; and the European Development Fund, $5.9 million.

III. The Barbados Economy

NATIONAL DEBT At December 2008, the stock of national debt stood at an estimated $6,035.2 million or 80.0 per cent of GDP. This represented an increase of $357.3 million or 6.3 per cent over the 2007 figure. Domestic debt stood at $4,517.9 million or 60.1 per cent of GDP, an increase of $449.4 million over the 2007 total. The level of foreign debt was $1,517.3 million or 20.2 per cent of GDP, a fall of $92.1 million. With respect to domestic debt, short-term debt or Treasury Bills stood at $657.9 million. Long-term debt, which was estimated at $3,860.0 million, comprised mainly of debentures and treasury notes valued at $3,174.6 million; savings bonds, $94.6 million; tax refund certificates, $1.6 million; and other domestic loans, $589.3 million. Regarding the foreign debt component, this consisted mainly of foreign bonds valued at $1,007.9 million; loans from international institutions, $489.4 million; Euro-market loans valued at $12.6 million, of which $10.7 million was provided by the European Investment Bank; and bilateral loans, $7.2 million. Figure 4

SOURCE: Ministry of Finance

Barbados Economic and Social Report 2008

III. The Barbados Economy

TABLE 3.3-1 Central Government Operations 2004/2005 -- 2008/2009 ($ M) ________________________________________________________________________ 2004/2005 2005/2006 2006/2007 2007/2008R 2008/2009P ________________________________________________________________________ Current Expenditure Amortization Other

2,154.8 338.5 1,816.3

2,268.5 295.1 1,973.4

2,517.1 419.4 2,097.7

2,955.0 486.4 2,492.0

3,072.4 470.1 2,602.3

Current Revenue 1,897.4 Tax 1,836.1 Non-Tax 61.3 Loans and Advances 0.0 Grant Income 0.0

2,143.0 2,075.1 65.3 2.7 0.0

2,223.4 2,155.3 65.6 2.2 0.0

2,452.0 2,353.9 93.1 0.0 4.0

2,553.2 2,441.8 103.9 0.0 7.5

Current Surplus/ Deficit

(257.4)

(125.5)

(293.7)

(503.0)

(519.2)

226.1

248.1

257.0

238.1

185.2

223.9

245.6

254.9

238.1

184.0

2.2

2.5

2.1

0.0

1.2

2,380.9

2,516.6

2,774.1

3,193.1

3,257.7

Capital Expenditure and Net Lending Capital Expenditure Lending Total Expenditure Total Financing Requirements/ Overall Fiscal Deficit

(483.5)

(373.6)

(550.7)

(741.1)

(704.5)

Amortization

338.5

295.1

419.4

463.0

470.1

(145.0)

(78.5)

(131.3)

(278.1)

(234.4)

Domestic

435.0

294.5

397.0

700.4

648.6

Foreign

48.5

79.0

153.7

40.7

55.9

0.0

Net Financing Requirements Financing

Financing Gap

Overall Deficit Net of Amortization as % of GDP 2.6 1.3 1.9 3.8 3.1 (at market prices) ________________________________________________________________________ SOURCE: Ministry of Finance

Barbados Economic and Social Report 2008

III. The Barbados Economy

TABLE 3.3-2 Current Revenue by Source 2004/2005 -- 2008/2009 ($ M) Actual Revenue 2004/05

2005/06

2006/07

2007/08R

2008/09P

Taxes on Income and Profits

621.3

706.2

804.7

924.3

884.7

Taxes on Property

112.9

137.4

151.2

102.9

133.5

Taxes on Goods and Services

837.9

959.9

939.3

1053.8

1096.8

Taxes on International Trade

193.0

180.5

173.8

197.3

226.0

Other Taxes Non-Tax Revenue Special Receipts Grant Income Loans and Advances

18.9 61.2 52.2 0.0 0.0

22.0 65.3 68.9 0.0 2.7

26.9 65.6 59.3 0.0 2.2

21.9 93.1 54.7 4.0 0.0

19.7 103.9 81.0 7.5 0.0

1897.4

2142.9

2223.0

2452.0

2553.2

Total Revenue

SOURCE: Ministry of Finance TABLE 3.3-3 Central Government Current Expenditure by Item 2004/2005 -- 2008/2009 YEAR

2004/05

2005/06

2006/07

2007/08R

($ M) 2008/09P

Employment Expenses

627.1

668.0

687.8

808.9

813.2

Wages and Salaries

584.1

620.9

637.1

752.8

754.4

43.0

47.1

50.7

56.1

58.8

Goods and Services

209.0

228.2

261.2

361.8

335.7

Amortization

338.5

295.1

419.4

463.0

470.1

Interest

263.4

298.9

327.4

343.5

356.1

Subsidies and Transfers

716.8

782.1

821.4

977.8

1097.3

2154.8

2272.3

2517.2

2955.0

3072.4

National Insurance Contributions

TOTAL

SOURCE: Ministry of Finance

Barbados Economic and Social Report 2008

III. The Barbados Economy

TABLE 3.3-4 Fiscal Deficit and Financing 2004/2005 -- 2008/2009 ($ M) 2004/05

2005/06

2006/07

2007/08R

2008/09P

___________________________________________________________________________ Overall Deficit

483.5

373.5

550.7

741.1

704.5

Foreign Financing

48.5

79.0

153.7

40.7

55.9

Project Financing

48.5

30.3

21.8

40.7

55.9

Inter-American Development Bank (IADB)

15.1

8.9

4.6

25.4

35.3

5.6

4.6

7.3

7.4

9.5

27.8

16.8

7.5

3.9

5.2

European Investment Bank

0.0

European Development Fund

0.0

4.0

5.9

Other Projects

0.0

2.4

0.0

Non-Project Financing

0.0

48.7

131.9

0.0

Foreign Commercial

0.0

48.7

131.9

0.0

Investment Sector Loan (IADB)

0.0

435.0

294.5

376.7

700.4

648.6

17.1

20.1

13.5

20.0

320.5

244.6

358.3

536.9

478.6

Tax Reserve Certificates

22.0

2.4

0.0

Tax Refund Certificates

1.0

1.4

0.9

0.0

Treasury Bills

0.0

150.0

Treasury Notes

0.0

Other Domestic

74.3

26.0

24.3

0.0

Total Financing

483.5

373.5

550.7

741.1

704.5

World Bank (IBRD) Caribbean Development Bank

Domestic Financing Government Savings Bonds Debentures

SOURCE: Ministry of Finance

Barbados Economic and Social Report 2008

III. The Barbados Economy

D. MONEY, BANKING AND CAPITAL MARKETS OVERVIEW Notwithstanding the challenges of the global financial and economic crisis, the domestic financial and banking sector continued to perform fairly well during 2008. Credit to the non-financial private sector grew by 11.8 per cent compared with 5.1 per cent the year before. Personal loans, much of which were driven by new mortgages, expanded by 7.8 per cent, while loans to the distributed sector rose by 3.6 per cent. Credit to statutory bodies and financial institutions advanced by 12.7 per cent and 29.4 per cent, respectively. However, loans to central government fell by 8.7 per cent.

In line with the fall in economic activity, domestic deposits slowed to 3.5 per cent during 2008, down from the 16.2 per cent seen in 2007. As a consequence, excess liquidity fell below the high levels recorded during the early part of 2008. In light of this, the liquid asset ratio stood at 10.4 per cent, which was slightly above the 9.5 per cent for the corresponding period 2007. The year 2008 was a challenging one for the Barbados Stock Exchange. This was evident by an overall decline in the trading volume of 52.0 per cent and value of 10.0 per cent, when compared with the previous year. In addition, all other indices registered declines during 2008. The decline in trading activity coincided with the escalation of the financial crisis in the US economy in the latter part of the third quarter of 2008.

TABLE 3.4-1 Selected Indicators of the Banking System as at December 2003 - 2008 2003

2004

2005

($ M) 2006

2007R

2008P

Net International Reserves Monetary Authorities Commercial Banks

2087.1 1503.3 583.8

1746.5 1190.3 556.2

1608.4 1236.5 371.9

1691.2 1194.1 497.1

2247.7 1548.0 699.7

1902.8 1404.2 498.6

Net Domestic Assets Credit to Public Sector Central Government (net) Other Public Sector

2086.9 456.9 698.8 (241.9)

3137.7 512.2 737.2 (225.0)

3584.6 289.8 559.8 (270.1)

4086.1 339.2 434.9 (95.6)

4341.2 452.1 533.6 (815.5)

4830.2 483.5 687.1 (203.6)

Credit to Rest of Financial System

155.6

234.9

312.9

343.2

482.1

601.4

Liabilities to other Finance System

390.0

394.5

515.0

630.0

925.4

895.9

Credit to Private Sector

2622.6

3061.8

3791.8

4292.9

4513.5

5045.5

Liabilities to the Private Sector

4174.0

4884.2

5195.0

5777.1

6588.3

6725.4

Monetary Base Currency in circulation Currency held by Banks

1082.7 329.0 753.7

771.2 398.7 372.4

774.2 448.6 325.6

830.7 465.0 365.7

1111.7 492.1 619.6

1078.8 476.2 602.6

Memo Items: Domestic Deposits Excess Liquidity Ratio (%)

4768.5 21.8

5253.1 18.4

5838.8 12.7

6297.3 6.6

7344.4 9.0

7600.0 n.a.

SOURCE: Central Bank of Barbados

Barbados Economic and Social Report 2008

III. The Barbados Economy

MONETARY POLICY The interest rate on 3-month Treasury Bills fell marginally to 4.8 per cent from the 4.9 per cent recorded at the end of December 2008. As a continuation of the Central Bank’s monetary easing in 2008, and the slowing of the domestic economy, the minimum deposit rate was reduced to 4.0 per cent, 0.8 percentage points lower than the rate at the end of December 2007.

COMMERCIAL BANK DEPOSITS Total deposits of commercial banks, including foreign currency deposits, fell by an estimated 1.3 per cent to $8,934.9 million at the end of December 2008. Of this total, domestic deposits grew by an estimated $121.4 million to $7,607.1 million. This expansion was due mainly to a strong rise in deposits by private individuals, which grew by an estimated 6.2 per cent and financial institutions, which grew by 1.1 per cent. In contrast, deposits by business firms fell by 10.2 per cent. At the end of 2008, foreign currency deposits stood at $1,327.9 million, a 22.4 per cent decline compared with the same period 2007.

At the end of December 2008, total demand deposits stood at $3,122.3 million compared with $3,299.7 in 2007. Of this amount, domestic demand deposits stood at $2,443.7 million, representing 78.3 per cent of total deposits. Foreign currency demand deposits, which stood at $678.6 million, accounted for 21.7 per cent of total demand deposits. Within the commercial banking system, the level of saving deposits grew by 9.3 per cent or $255.2 million to $3,666.5 million during 2008. Savings of private individuals rose to $3,383.1 million, at the end of the review period, representing 92.3 per cent of total savings deposits. Saving deposits by financial institutions fell by 20.9 per cent while savings by business firms fell by 0.5 per cent. Total time deposits declined by $199.2 million or 8.5 per cent to $2,146.1 million. Of this total, domestic time deposits amounted to $1,498.3 million or 69.8 per cent of total time deposits, while foreign currency time deposits amounted to $647.8 million, or 30.2 per cent of the total deposits. Time deposits of private individuals grew by 1.8 per cent, while deposits of business firms and financial institutions fell by 15.7 per cent and 20.9 per cent respectively.

TABLE 3.4-2 Commercial Bank Deposits 2003 -- 2008 Type of Deposit

2003

2004

2005

2006

2007R

2008P

Demand

2137.5

2465.5

2699.4

2670.3

3299.7

3122.8

Savings

2460.2

2633.3

2758.4

3029.6

3411.3

3666.5

896.1

1036.8

1548.0

1605.4

2345.2

2146.1

5493.8

6135.7

7005.9

7305.3

9056.4

8934.9

Time Total Deposits

SOURCE: Central Bank of Barbados

($ M)

Barbados Economic and Social Report 2008

COMMERCIAL BANK S ECTORAL CREDIT In 2008, total commercial bank credit increased by 11.9 per cent to $5,703.0 million. This was due mainly to a substantial increase in credit to the personal sector of approximately $201.5 million or 8.2 per cent. There were also noteworthy increases in other sub-categories such as Professional and Other Services -- $120.8 million or 33.5 per cent; Construction – $73.5 million or 20.8 per cent; and Financial Institutions – $67.3 million or 29.6 per cent. Figure 5 Commercial Bank Sectoral Credit (% of Total Credit)

SOURCE: Central Bank of Barbados

MONEY SUPPLY At the end of December 2008, the total money supply, which included currency with the public and demand deposits (M1), fell by $130.2 million or 3.4 per cent to $3,672.9 million. Currency with the public declined by $12.1 million or 2.5 per cent to $479,923 million while demand deposits fell by $118.0 million or 3.6 per cent to $3,192.7 million. From a wider perspective, Broad money (M2) fell by 0.8 per cent, reflecting a decline in both money supply and Quasi money5 .

III. The Barbados Economy

NON-BANK FINANCIAL INSTITUTIONS CREDIT UNIONS During 2008, active credit unions totalled thirty-five (35), two (2) less than the thirty-seven (37) recorded at the end of 2007. Total membership declined during the review period by 2.4 per cent to 148,471 persons compared with 151,566 persons in 2007. This decline was due to amendments to the Co-operatives Societies Act which came into effect in December 2007. These amendments contained two provisions which impacted on membership. Total assets at the end of 2008 were valued at $1,202.0 million compared with $1,105.0 million in 2007. The value of loans extended to members rose by 11.4 per cent to reach $964.5 million compared with $866.0 million in 2007. Total savings by members fell by 4.9 per cent to $978.8 million compared with an increase of 26.9 per cent in 2007. Accordingly, regular deposits grew by 96.6 per cent or $283.4 million to $576.8 million; term deposits fell by 8.6 per cent or $17.2 million to $182.2 million; and the shares category fell by 59.0 per cent or $316.3 million to $219.8 million. This decline in savings reflected a return to normal levels given the significant jump in 2007 when tax concessions on savings were introduced. Non-member deposits doubled during 2008, rising by 95.6 per cent to reach a value of $22.3 million. This substantial increase was primarily due to amendments in 2007 to the Cooperative Society Act that allowed increased membership of youth savers who made up the majority of non-membership deposits. There was an 11.9 per cent increase in statutory reserves, which stood at $80.6 million at the end of 2008.

This comprises Time and Savings Deposits.

Barbados Economic and Social Report 2008

III. The Barbados Economy

INSURANCE INDUSTRY During 2008, a total of thirteen (13) new applications were made for exempt insurance and insurance management companies, compared with ten (10) in 2007. Of this total, ten (10) were for exempt companies, while three (3) were for management companies. All ten (10) applications for exempt companies were approved along with the three (3) management company applications. There were also ten (10) applications for Qualifying Insurance applications, all of which were approved. In all, a total of twenty-three (23) companies were licensed compared with seventeen (17) in 2007. At the end of 2008, a total of 468 exempt insurance companies were registered in Barbados, of which 164 were active. Of the total exempt companies registered, 147 were Canadian while 255 were from the USA. Total registration of insurance management companies stood at seventy-seven (77) with twenty-three (23) being active. Furthermore, a total of eighty-four (84) qualifying companies and thirty-nine (39) holding companies were registered at the end of 2008. Most of the registered qualifying companies were from Canada. At the end of 2008, total assets in the insurance industry were estimated at $44.6

billion, $2.0 billion more than the total assets reported in 2007. At the end of the review period, total revenue collected from the industry stood at an estimated $1.2 billion compared with $1.6 billion in 2007. This decline in revenue was attributed to the global financial sector meltdown and other issues confronting the industry in the USA, UK and Europe.

BARBADOS STOCK EXCHANGE OVERVIEW The year 2008 was a challenging one for the Barbados Stock Exchange. This was evident by an overall decline in the trading volume of 52.0 per cent and value of 10.0 per cent, when compared with the previous year. In addition, all other indices registered declines during 2008, while trading activity was far from uniform. There was a significant fall off in the number of trades as well as the average share prices in the first six (6) months of the year compared with the second half of the year. While the first six (6) months of 2008 was relatively positive, the last six (6) months were challenging. These challenges to trading activity coincided with the escalation of the financial crisis in the US economy in the latter part of the third quarter of 2008.

TABLE 3.4-3 Securities Exchange Trading (Selected Markets) 2003 - 2008 Year

Common No.

Shares Preferred No.

Put-thrus No.

Value ($M)

2003

63,656,350

4,483

64,360,305

130,248,483

394.8

2004

119,712,512

1,936

198,185

122,267,218

459.1

2005

43,375,646

1,597

662,103

44,696,139

190.1

2006

12,842,607

1,123

342,799

643,431,592

2,072.9

2007

155,339,232

25,848,811

162,385,901

597.3

2008

71,880,741

5,912,068

78,516,134

537.5

SOURCE: Securities Exchange of Barbados

Total Volume No.

Barbados Economic and Social Report 2008

III. The Barbados Economy

TRADING ACTIVITY REGULAR MARKET There was a decline of 53.7 per cent and 10.9 per cent in the volume of shares and value traded, respectively, in the regular trading market. This performance occurred in spite of a 5.0 per cent increase in the number of trading days and a 52.1 per cent increase in the number of trades occurring on the market. While there were declines across the board in terms of index

and market capitalization movement, the crosslisted and composite market capitalization registered the greatest decline. This was attributed to the delisting of Courts (Barbados) Limited and RBTT Financial Holdings Limited in mid-2008. Barbados Shipping & Trading Company Limited and Barbados Farms Limited were the top traded companies during the year. Between them, they accounted for 80.0 per cent of the total volume of shares traded in the Regular Market and 84.0 per cent of the value traded.

TABLE 3.4-4 Volume of Shares Traded (top five companies) 2007 -- 2008 VOLUME LEADER

2007

Barbados Shipping & Trading Limited Barbados Farms Limited Sagicor Financial Corporation FirstCaribbean International Bank Banks Holdings Limited

2008

% Change

6,807,256

39,912,040

486.32

860,643

16,099,683

1770.66

3,220,857

4,197,934

30.34

131,779,181

1,983,580

(98.49)

2,864,381

1,567,518

(45.28)

SOURCE: Barbados Stock Exchange

TABLE 3.4-5 Index & Market Capitalisation 2007 -- 2008 2007

2008

Index Local

4,123.07

3,632.52

(11.9)

Cross-Listed

2,044.89

1,892.35

(7.5)

Junior Market

N.A.

Composite

1,028.80

919.86

% Change

(10.6)

Market Capitalisation ($M) Local 11,198,557,827.0

9,914,504,612.0

(11.5)

Cross-Listed

3,721,837,977.0

(51.3)

Junior Market Composite

7,642,726,312.0 N.A.

N.A.

18,857,664,637

13,648,868,853

(27.6)

SOURCE: Barbados Stock Exchange

Barbados Economic and Social Report 2008

Figure 6

SOURCE: Securities Exchange of Barbados

ODD-LOT MARKET6 The Odd-lot Market, which caters to orders of less than 1,000 shares, along with the Putthrough Market were the only two markets to register an increase in volume and value over 2008. Trading volume increased by 74.0 per cent from 332,945 shares in 2007 to 578,887 shares traded in 2008. This increase was coupled with a corresponding 142.0 per cent increase in the value of shares traded. Barbados Shipping & Trading Company Limited was the top traded company over the period accounting for 38.0 per cent of the total shares traded. It should be noted that 99.0 per cent of the Barbados Shipping & Trading Company Limited shares which traded on this market were part of the take-over transaction mentioned previously.

JUNIOR MARKET There was a decline in activity in the Junior Market for 2008. Trading in Sunbeach Communications Inc, the sole company listed in this market, declined by 89.0 per cent in terms of volume and 80.0 per cent in terms of value. For the fourth quarter there was an even greater decline as volume fell by 93.0 per cent and value fell by 95.0 per cent. In addition to these declines, there was a fall in the liquidity of the security as there were 71.0 per cent fewer trades in the company during 2008 when compared with 2007.

III. The Barbados Economy

INDICES AND MARKET CAPITALIZATION There were declines across the board in terms of indices and market capitalization for 2008. The local index declined by 11.9 per cent while the cross listed and composite index fell by 7.5 per cent and 10.6 per cent respectively. During the first quarter of 2008, all three indices moved relatively flat but climbed during the second quarter, peaking between June and July. By the close of the third quarter the local index had fallen to -0.8 per cent, while the composite and cross-listed index recorded increases of 0.8 per cent and 5.1 per cent, respectively. In the fourth quarter the indices declined sharply by an average of 11.5 per cent. These events of the fourth quarter coincided with the escalation of the international financial crisis. At the end of 2008 total market capitalisation stood at over $25.0 billion compared with over $30.0 billion at the end of 2007.

ADVANCERS/DECLINERS For the year under review, eight (8) of the twenty-five (25) listed securities advanced, fifteen (15) declined and two (2) remained unchanged. This was compared with 2007 when fifteen (15) of the twenty-seven (27) listed securities advanced, nine (9) declined, one (1) remained unchanged and two (2) did not trade. Cable & Wireless (Barbados) Limited reflected the greatest increase in share price which climbed 40.0 per cent. This increase came against the backdrop of the 68.0 per cent increase in the company share price in 2007. C & W Barbados were followed by Cave Shepherd & Company Limited and Goddard Enterprises Limited which appreciated by 15.7 per cent and 9.9 per cent respectively. Barbados Farms Limited suffered the greatest decline for the year as the share price fell by 37.5 per cent in 2008. Other companies suffering declines during 2008 were Sagicor Financial Corporation, One Caribbean Media 6

All Odd-lot Market volumes and values include any preference shares which may have been traded on this Market during the stated period.

Barbados Economic and Social Report 2008

III. The Barbados Economy

Limited, Jamaica Money Market Brokers Limited, Barbados Dairy Industries Limited and Sunbeach Communications Inc.

E. EMPLOYMENT, INFLATION LABOUR MARKET

AND

EMPLOYMENT The annual rate of unemployment for 2008 was 8.1 per cent, representing a 0.7 percentage point increase over the 7.4 per cent, which was recorded in 2007. There were 11,700 unemployed persons throughout 2008, a year which saw both male and female unemployment rising. Female unemployment increased by 11.8 per cent to 6,600 persons from 5,900 persons the previous year. This resulted in the female unemployment rate increasing by 1.0 percentage point to 9.5 per cent, compared with 8.5 per cent in 2007. Male unemployment stood at approximately 5,100 persons or 300 persons more than in 2007, and represented a rate of unemployment for males of 6.9 per cent. There was only a marginal increase in the labour force during 2008 which grew by approximately 100 individuals to record a labour force of 143,800 persons. The composition of

the labour force at the end of 2008 was 73,700 males and 70,100 females. The total employed labour force in 2008 was 132,100 persons, comprising 68,700 males and 63,400 females. In 2008, the labour force participation rate fell slightly from 67.8 per cent to 67.6 per cent. The participation rate for males decreased to 73.3 per cent compared with 74.3 per cent at the end of 2007. However, the participation rate for females increased 0.6 percentage points from 61.9 per cent in 2007 to 62.5 per cent in 2008. At the end of 2008, General Services, Government Services and Wholesale and Retail Trade were the major sources of employment, providing approximately 30,100, 26,600 and 19,000 jobs respectively. Employment in the Tourism Sector and the Construction and Quarrying Sector employed 14,000 and 13,600 persons, respectively. Employment in the Finance, Insurance and Business Services Sector employed 10,600 persons. The Manufacturing Sector accounted for the employment of 6,700 persons and the Transport and Communications Sector employed approximately 5,800 persons. Employment in the Agriculture Sector, inclusive of Sugar, amounted to 3,700 persons, while some 1,600 persons were employed in the Electricity, Gas and Water Sector.

36 (‘000)

6.5

6.1

5.2

4.8

5.4

5.2

5.9

4.4

4.5

4.7

4.1

3.7

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006R

2007P

2008P

13.6

15.4

14.5

13.2

13.4

12.3

13.2

14.2

13.7

14.1

12.5

10.2

8.9

8.8

6.7

6.2

5.5

7.0

7.6

7.9

9.0

9.2

10.1

10.3

10.7

10.0

11.7

1.6

2.0

2.3

2.1

1.8

2.6

1.9

1.3

1.4

1.1

1.0

19.0

18.1

16.7

18.5

19.6

19.1

18.7

17.2

18.2

15.9

15.0

16.6

14.0

13.5

12.9

12.2

14.0

14.2

13.7

14.1

12.3

13.8

12.3

11.9

SOURCE : Barbados Statistical Service * Figures from 1990 -- 1994 have been revised to account for the 1990 census

5.1

1995

5.8

5.2

4.4

5.7

5.2

4.8

4.7

5.7

5.0

4.5

5.1

4.6

4.5

5.1

10.6

9.6

9.8

10.8

9.0

10.9

10.4

9.0

7.0

7.5

8.1

8.6

7.6

30.1

31.7

32.0

29.5

28.9

25.2

21.8

22.9

25.4

23.3

19.9

21.1

22.6

19.3

26.6

26.3

27.1

28.2

27.5

27.9

27.7

26.2

24.5

26.3

24.5

25.2

23.9

22.9

132.1

133.1

131.0

132.6

132.0

129.5

128.6

130.9

129.0

125.2

121.7

117.7

115.8

109.9

Sugar and TransportaOther Agri- ConstrucElectricity Wholesale tion and Year culture tion and ManuGas and and Retail Tourism Communi- Financial General Government Total Fishing Quarrying facturing Water Trade cation Services Services Services __________________________________________________________________________________________________________________

TABLE 3.5-1 Employment by Major Industrial Division 1995--2008

Barbados Economic and Social Report 2008 III. The Barbados Economy

Barbados Economic and Social Report 2008

The distribution of employed persons in the labour force among the different age groups at the end of the year showed that the 15–19 age grouping comprised 3,400 persons. There were 73,000 persons within the 20–44 age grouping, which accounted for an estimated 55.2 per cent of the employed labour force. The 45–64 age grouping consisted of 52,500 persons, or 39.7 per cent of the employed labour force. There were 3,200 persons aged 65 and over in the employed labour force. The number of persons not actively seeking work and therefore not included in the labour force was estimated at 68,900 persons. The number of inactive females was 42,000 persons and inactive males stood at 26,300 persons. Retired persons accounted for 35,500 of this, retired females were 20,300, while there were 15,200 retired males. There were 15,200 persons at school comprising 8,300 females and 6,800 males. A total of 10,500 persons were responsible for “keeping house” of which females accounted for 9,300 persons and males 1,200 persons. The number of incapacitated persons in 2008 was estimated at 3,300.

III. The Barbados Economy

cent increase over the 11,484 claims made in 2007. The National Insurance Scheme approved a total of 11,741 claims (inclusive of those brought forward), 1,371 claims fewer than in 2007. There were 1,148 disallowed claims compared with 1,358 disallowed claims in 2007. The level of benefit payments increased by $5.4 million to $32.2 million compared with payments of $26.8 million in 2007. The Severance Payment Scheme received 201 employee claims for rebates in 2008, some 19 claims less than in the previous year. Nine (9) of those claims were disallowed (this includes those brought forward), with payments amounting to $2.4 million. This represented a decrease of $2.9 million in payments made over the previous year. In 2008, there were 134 claims for employer payments (including those brought forward), compared with the 634 allowed the previous year. Payments under this scheme decreased by $1.2 million to reach $1.0 million compared with $2.3 million at the end of 2007. Total contributions to the Severance Fund continued its increase in 2008 and stood at $9.9 million, a $0.8 million increase over the $9.1 million contributed the previous year.

NATIONAL INSURANCE SCHEME In 2008, contributions to the National Insurance Fund increased some $40.9 million to $527.9 million. This represented an 8.4 per cent increase over the $487.0 million contributed in 2007. The Fund paid out a total of $368.8 million, an increase of $38.9 million over the $329.9 million paid out in 2007. At December 31, 2008, the Fund balance stood at $2.8 billion, an increase of $270.2 million over the $2.6 billion recorded at December 31, 2007. There were 12,944 unemployment claims received in 2008. This represented a 12.7 per

Figure 7

SOURCE: Central Bank of Barbados

Barbados Economic and Social Report 2008

III. The Barbados Economy

INFLATION

Local registration declined further in 2008 with some 713 job seekers registering for local employment opportunities at the NEB compared with 761 registrations in 2007. The majority of persons seeking local employment were female, and totalled 521 persons. There were 192 male registrations for the year, and 18.6 per cent decrease compared with 2007.

At the end of December 2008, the average rate of inflation was estimated at 7.3 per cent compared with 4.7 per cent at the same period 2007. The index of Retail Prices at December 2008 registered increases in Clothing and Footwear, Food, Household Operations and Supplies and Alcoholic Beverages and Tobacco when compared with the previous month.

By the end of 2008, the number of persons placed locally by the NEB was 283, an improvement over the 232 persons locally placed through the NEB in 2007. The majority of these local placements were in elementary occupations, which accounted for 41.6 per cent. Nine (9) placements were made in the high skilled occupations of Technicians and Associated Professionals’ occupational group which accounted for 3.2 per cent. Four (4) placements were made to the Professionals’ occupational group, while four (4) placements were made to the Senior Officials and Management, and Legislators group.

NATIONAL EMPLOYMENT BUREAU (NEB) During 2008, the National Employment Bureau continued to deliver a number of employment services to the general public such as job screening, placements, career guidance and counselling services to students, jobseekers and career planners.

TABLE 3.5-2 Local Placement by Occupational Group 2004--2008 Local Placement by Occupational Group

2004

2005

2006

2007

2008

Legislators, Senior Officials and Managers

Professionals

Technicians and Associate Professionals

Clerks

Service Workers, Shop and Market Sales Workers

Skilled Agricultural Fishery Workers

Craft & Related Workers

Plant and Machine Operators and Assemblers

Elementary Occupations

162

172

114

118

Total

329

350

167

232

283

SOURCE: Ministry of Labour and the Civil Service

Barbados Economic and Social Report 2008

III. The Barbados Economy

There were 408 persons who registered for overseas placement in 2008. Of these, 60.7 per cent were females. Actual overseas placements decreased 15.3 per cent to 441 persons during 2008. Placement in the hotel programmes in Canada and the U.S.A. decreased during the year, moving from 127 and 146 placements respectively in 2007 to 126 and 136 in 2008. The Canadian Farm Labour Programme received a total of 179 placements during the year, a decrease of 27.8 per cent or 69 placements.

In its outreach activities, the NEB made 153 visits to employers, twelve (12) school visits, seven (7) school lectures and twentytwo (22) lectures to community groups in 2008. These sessions were conducted to continuously promote the services of the NEB and to make presentations on various topics related to the activities of the NEB.

INDUSTRIAL RELATIONS With respect to occupational safety and health standards, the Labour Department

TABLE 3.5-3 Overseas Placement Programmes

Overseas Placement Programmes

Number of Placements 2004

2005

2006

2007

2008

428

375

306

Canadian Hotel Programme

173

248

US H2b Hotel Programme

121

517

492

477

391

408

Canadian Farm Labour Programme

Cruise Lines Total

SOURCE: Ministry of Labour and the Civil Service

Barbados Economic and Social Report 2008

III. The Barbados Economy

TABLE 3.5-4

continued its responsibility in addressing a number of the complaints and concerns during the year. The number of formal grievances received by the Labour Department increased during the year moving from 1,458 complaints in 2007 to 1,647 complaints in the year under review.

Grievances by Category

The Labour Department also provided conciliatory services in industrial disputes. The number of industrial disputes continued its decline during the year moving from thirty-eight (38) disputes in 2007 to eleven (11) disputes at the end of 2008. The number of work stoppages decreased from eighteen (18) in 2007 to seventeen (17) in 2008. However, the total number of man-days lost due to these work stoppages increased from approximately 388 days in 2007 to 3672.5 days in 2008.

Reason for Grievance(s)

2005

2006

2007

2008

Dismissals

829

880

613

659

Conditions of Employment

151

395

152

145

Lay-offs

157

239

Miscellaneous

475

243

304

417

Resignations

116

170

125

132

Suspensions

234

125

138

150

Redundancy

Severance

2124

2088

1458

1647

Wages

Total

SOURCE: Ministry of Labour and the Civil Service

TABLE 3.5-5 Work Stoppages by Economic Activity No. of Work Stoppages Economic Activity

2005

2007

2008

Agriculture, Forestry and Fishing

Mining and Quarrying

Electricity, Gas and Water

Construction

Manufacturing

Wholesale and Retail Trade

Transport, Storage and Communications

Finance, Insurance and Business Services

Community, Social and Personal Services

Total

SOURCE: Ministry of Labour and the Civil Service

2006

Barbados Economic and Social Report 2008

LABOUR/FACTORY INSPECTORATE Under the management of the Labour Department, the Factory Inspectorate monitored occupational safety and health conditions at places of employment. During 2008, the Factory Inspectorate conducted 801 routine inspections, 508 more inspections than the 453 conducted in 2007. The number of industrial accidents decreased by 16.9 per cent to 726 accidents compared with 874 accidents in 2007. For the year, there was one (1) reported fatality.

NATIONAL PRODUCTIVITY INDICATORS7 The Productivity Council, the Central Bank of Barbados and the Barbados Statistical Service continued to collaborate during 2008 to produce national productivity indicators for Barbados for the period ending 31 December 2007. The study was conducted in two parts – the first component was conducted using the National Accounts Statistics to produce an Annual National Productivity growth indicator, while the second component used a survey to compute productivity statistics for the sectors of Manufacturing, Banking, Distribution and Tourism (Accommodation).

III. The Barbados Economy

SECTORAL PRODUCTIVITY INDICES PRODUCTIVITY The second component of the study conducted a survey of four (4) major sectors, namely Manufacturing, Banking, Distribution and Tourism to determine the level of annual productivity growth. The analysis indicated that the distribution sector achieved the highest rate of average productivity change of 3.7 per cent, while the financial services sector recorded an increase of 0.5 per cent. On the other hand, the manufacturing and accommodation sectors registered declines of 0.9 per cent and 2.2 per cent, respectively.

ABSENTEEISM With respect to the absenteeism rate, the lowest overall average absenteeism rate of 4.2 per cent was recorded in the financial services sector, followed by the accommodation sector with 7.9 per cent. In addition, the wholesale and retail establishments registered the highest absenteeism rate of 9.4 per cent, due primarily to a high rate of 10.5 per cent in the retail subsector and 12.7 per cent in the supermarket industry. TABLE 3.5-6

NATIONAL PRODUCTIVITY GROWTH The analysis conducted using the National Accounts Statistics indicated that nongovernment productivity grew by 2.1 per cent in 2007 after a 1.4 per cent growth in 2006.

Absenteeism Rate Industry

2007

7.10

7.85

4.19

7.89

8.70

7.10

9.35

Hotel: Accommodation All Establishments

Figure 8 Macro-Productivity Growth (% Change)

2006

Financial Services All Establishments Manufacturing All Establishments Wholesale & Retail Trade All Establishments

Source: National Productivity Council Computed from: Hours Worked for the Labour Force Survey and Real GDP. Source: Barbados Statistical Services and Central Bank of Barbados.

The survey for the National Productivity Indicator was carried out during 2008 and reported on productivity data for 2006 and 2007.

Barbados Economic and Social Report 2008

PRODUCTIVITY STATISTICS BY SELECTED SECTORS 1. ACCOMMODATION ESTABLISHMENTS Based on data derived from the 2008 National Survey of Productivity, productivity growth in the accommodation sector of the economy is estimated to have fallen by approximately 2.2 per cent, as the expansion in hours worked outweighed that of output. Two (2) of the sub-sectors within the accommodation industry apartments and apartment hotels registered increases of 6.8 per cent and 1.0 per cent, respectively. Guest houses and hotels declined by 1.0 per cent and 2.2 per cent, in that order.

2. FINANCIAL SERVICES INSTITUTIONS Productivity in the financial services institutions exhibited an expansion in 2007 of 0.5 per cent. Growth in this group was generally broad-based, with credit unions reporting higher rates of growth (9.3 per cent) followed by finance and trust companies (7.6 per cent).

III. The Barbados Economy

3. MANUFACTURING ESTABLISHMENTS With both output and average hours worked falling in 2007, the average labour productivity among the manufacturing firms surveyed fell by 0.9 per cent. The most significant declines were recorded in the subsectors of: furniture (-12.2 per cent), clothing (-11.3 per cent) and cement and concrete (-10.0 per cent). However, despite the contraction in the overall industry, positive rates of productivity change were registered by four (4) manufacturing categories, namely, paint and finishes, beverages, mining and quarrying and chemicals.

4. WHOLESALE & RETAIL TRADE ESTABLISHMENTS An average productivity growth rate of 3.7 per cent was achieved for the Wholesale and Retail Trade Sector. This was primarily due to a 10.4 per cent increase in Wholesale and Commission agencies, a 7.2 per cent in the Retail segment, and a 5.7 per cent increase among the Car Dealership group. Gas stations showed a lesser decline of 3.9 per cent, compared with 7.3 per cent decline in 2006.

Barbados Economic and Social Report 2008

III. The Barbados Economy

Table 3.5-7 Labour Productivity Growth in Selected Industries in 2004-2007 (% Change) 2004

2005

2006

2007

All Establishments Guest Houses Apartments Apartment Hotels Hotels

29.8 (27.9) 8.2 0.9 30.2

18.6 27.3 (13.8) 32.9 18.7

0.0 (3.3) n.a. n.a. (0.1)

(2.2) (1.0) 6.8 1.0 (2.2)

Financial Services All Establishments Commercial Banks Finance and Trust Credit Unions

4.1 5.3 (4.0) 19.5

0.3 (4.4) 10.3 (1.4)

5.3 4.1 1.4 8.9

0.5 2.0 7.6 9.3

31.5 39.8

5.0 (3.5)

(1.2) (2.8)

(0.9) n.a.

64.3 15.1 5.6 (2.6) 2.5 18.3 (15.1) 19.8

(11.0) 19.8 23.2 11.6 7.8 13.3 47.0 17.0

(0.2) 7.9 (1.9) n.a. 0.7 n.a. 4.5 0.6

n.a. n.a. 7.9 n.a. 5.6 11.9 (12.2) 1.2

3.7 7.3 n.a.

0.4 6.4 n.a.

(1.5) (7.3) n.a.

3.7 5.7 (3.9)

(11.4) 12.7

15.7 (9.5)

(2.1) (4.3)

10.4 n.a.

Accommodation

Manufacturing All Establishments Food, Beverage & Tobacco Non-Metallic Mineral Products Rubber & Plastic Products Chemicals Clothing & Textile Publishing & Printing Mining & Quarrying Furniture Other Wholesale & Retail Trade All Establishments Car Dealerships Gas Stations Wholesale & Commission Trade Retail

SOURCE: National Productivity Council

Barbados Economic and Social Report 2008

IV. Sectoral Performance

IV. SECTORAL PERFORMANCE A. AGRICULTURE AND FISHERIES OVERVIEW Within the Traded Sector the contribution of sugar, and non-sugar agriculture and fishing to Real Gross Domestic Product (RGDP) stood at $13.6 million and $35.8 million respectively. The contribution of sugar reflected a 6.8 per cent decrease from the previous year. Nonsugar agriculture and fishing increased by $1.1 million or 3.2 per cent from the $34.7 million recorded in 2007.

SUGAR Sugar production decreased by 9.0 per cent or 3.1 thousand tonnes to 31.6 thousand tonnes in 2008. Total acreage of sugar canes harvested was 14.6 thousand acres, down by 1.0 thousand acres from the previous year. The annual harvest produced 310.7 thousand tonnes of canes, 42.8 thousand tonnes less than the previous year, with 170.5 thousand tonnes going to Andrews factory and 140.1 thousand tonnes to Portvale factory. Independent Plantations and Barbados Agricultural Management Company (BAMC) estates harvested the most canes in 2008, 199.6 thousand tonnes and 108.5 thousand tones, respectively. Small farmers harvested 2.6 thousand tonnes, a decline of 0.7 thousand tonnes or 21.2 per cent from the 2007 figure of 3.3 thousand tonnes. This reflected an overall decrease in the sugar yield of 42.8 thousand tonnes of canes or 12.1 per cent harvested in 2008, over the 2007 figure of 353.5 thousand tonnes. Molasses production decreased by 19.3 per cent or 2.6 thousand tonnes to 10.9 thousand tonnes compared with the 2007 figure of 13.5 thousand tonnes. The total acreage of sugar canes harvested in 2008 was 14.6 thousand acres, a decrease of 1.0 thousand acres or 6.4 per cent compared with the 2007 figure of 15.6 thousand

acres. There were reductions in the number of acres harvested by the Independent Plantations which accounted for 8.9 thousand acres and BAMC estates 5.5 thousand acres, while the amount harvested by Small Farmers declined to 0.1 thousand acres. The overall total metric tonnes of sugar shipped to the European Union in 2008 were 27.8 thousand metric tonnes compared with 32.8 thousand metric tonnes in 2007. The total incidence of cane fires recorded in 2008 was fifty-nine (59), an increase of two (2) over the 2007 figure. The amount of burnt canes recorded at the BAMC was 6.2 thousand tonnes and at the Independent Plantations was 18.9 thousand tonnes. Export earnings from the European market in 2008 decreased by $1.2 million or 2.6 per cent to $45.1 million. The export price yielded $1,622.6 per tonne in 2008 as compared with $1,413.1 per tonne in 2007 because of the exchange rate fluctuation of the US dollar against the Euro. The cost of production was noticeably higher in 2008 at $3,043.6 per tonne compared with the 2007 figure of $ 2,641.3 per tonne. Recovery of sugar from the cane continued to improve in 2008. The conversion ratio (TC/ TS ratio), which reflects the total tonnes of canes used to produce a tonne of sugar, decreased in 2008 by 0.4 thousand tonnes of canes compared with 10.2 thousand tonnes of canes the previous year. The intentions of the Ministry of Agriculture and Rural Development (MAR) was to embark on a holistic initiative to restructure and transform the sugar industry. However, in the advent of the current global economic and financial crisis, the MAR shelved plans for the examination of the feasibility of establishing a multi-purpose facility for the production of ethanol and the generation of electricity. It further proceeded with the production of refined and specialty sugars, as well as high grade molasses.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

Figure 9

serviced forty-one (41) farmers at River Plantation and twenty-six (26) farmers at Spring Hall Plantation. On the River Plantation, 275.5 acres were distributed and at Spring Hall 403.7acres were distributed.

VEGETABLE PRODUCTION8 The overall vegetable production for 2008 increased by 105.3 thousand kilogrammes or 1.8 per cent over the 5,841.1 thousand kilogrammes recorded in 2007. Included in this increased figure was the production of 236.0 thousand kilogrammes of corn, 35.0 thousand kilogrammes of peas and 371.8 thousand kilogrammes of squash. The production of cabbage, carrots, sweet peppers, and pumpkins all increased during 2008. Cucumbers, okras and tomatoes showed substantial decreases in production of 20.2 per cent, 9.8 per cent and 18.1 per cent, respectively, in comparison with

SOURCE: Barbados Agricultural Management Corporation

NON-SUGAR AGRICULTURE The total area distributed under public lands was 773.5 hectares, 301.5 hectares more than the previous year. This distributed land

TABLE 4. 1-1 Vegetable Production (’000 kgs) 2002 - 2008 % Change Year Beans (String) Beets Cabbage Carrots Cucumbers

2002

2003

2004

2005

2006

2007

2008P Over 2007

393.8

505.3

243.6

343.0

370.7

252.0

75.8

155.1

218.4

98.9

92.4

109.8

38.6

-64.8

501.2

640.0

432.3

405.3

641.9

253.5

622.6

145.6

219.1

-13.1

800.2

1 011.5

826.8

467.2

317.7

305.4

382.5

25.2

1 701.7

2 018.1

1 361.9

1 388.1

1 324.2

1450.0

1157.3

-20.2

Lettuce

155.5

278.9

316.5

285.3

438.9

417.5

190.6

-54.4

Melons

281.4

342.8

375.5

379.5

309.6

477.4

237.1

-50.3

1 288.7

1 466.1

569.7

495.0

525.2

658.1

593.6

-9.8

610.4

639.9

323.1

114.1

136.5

114.2

163.6

43.3

Peppers (Sweet) 1 107.7

Okras Peppers (Hot)

1 264.2

548.5

574.9

477.5

419.5

351.3

-16.3

Pumpkins

265.0

446.3

291.3

204.3

120.9

159.5

344.6

116.0

Tomatoes

916.8

1 233.7

837.4

987.3

1040.6

1224.2

1002.7

-18.1

SOURCE: Statistical Services Department/Ministry of Agriculture and Rural Development The methodology for the formulation of the vegetable production figures for Agriculture has changed and these figures for 2008 are therefore provisional since the process is under continuous modification for more accurate production figures. 8

Barbados Economic and Social Report 2008

IV. Sectoral Performance

their 2007 figures. The increase in the production of these crops was as a result of more favourable weather conditions throughout 2008.

VEGETABLE IMPORTS Total vegetable imports for the year 2008 decreased by 76.4 thousand kilogrammes or 2.9 per cent from the 2,651.9 thousand kilogrammes in 2007. The main vegetable imports for the review period were melons (565.8 thousand kilogrammes), pumpkins (548.6 thousand kilogrammes), carrots (444.9 thousand kilogrammes), cabbage (416.5 thousand kilogrammes) and lettuce (305.3 thousand kilogrammes). There was a decrease of 9.7 thousand kilogrammes or 1.7 per cent in the importation of melons when compared with the 2007 figure. The imports of lettuce (305.3 thousand kilogrammes) increased, while

tomatoes (138.6 thousand kilogrammes) decreased during 2008 when compared with 2007. Pumpkin imports increased by 66.2 thousand kilogrammes to 548.6 thousand kilogrammes during 2008. Beet imports for the review period totalled 20.6 thousand kilogrammes.

LIVESTOCK AND DAIRY PRODUCTS PRODUCTION There was a decrease in chicken (poultry), pork and egg production during 2008. On the other hand, beef and veal production increased by 6.1 and 31.7 per cent respectively during 2008. Chicken production decreased by 0.5 thousand kilogrammes or 3.7 per cent compared with 14.9 thousand kilogrammes in 2007. Egg production was estimated at 1,902.5 thousand kilogrammes, a decrease of 402.5 thousand

TABLE 4.1-2 Vegetable Imports (’000 kgs) 2002 – 2008 Year

2002

Beans Beets

2004

1 218

150

188

125

165

115

-30.30

12 199

7 461

18 442

28 940

13 318

n.a.

20 552

n.a.

Cabbage

320 554

349 528

437 620

471 440

755 898

441 435

416 515

-5.60

Carrots

315 942

381 449

411 587

443 648

433 531

409 338

444 888

8.70

24 549

40 458

88 658

59 056

3 411

32 709

9 819

-70.00

Lettuce

221 329

198 521

177 491

140 461

188 813

254 190

305 336

20.10

Melons

370 595

318 949

577 734

528 590

420 937

575 556

565 837

-1.70

205

-84.10

6 555

5 446

3 591

11 171

5 904

10 936

23 018

110.50

Peppers (Sweet) 104 047

65 494

135 982

277 156

68 939

44 241

77 334

74.80

Cucumbers

Okras Peppers (Hot)

2005

2006

2007

% Over 2008

2003

2008

Pumpkins

187 024

257 909

289 744

375 180

511 049

482 436

548 646

13.70

Tomatoes

165 226

106 927

249 021

316 180

144 302

153 963

138.565

10.00

SOURCE: Statistical Services Department/Ministry of Agriculture and Rural Development

Barbados Economic and Social Report 2008

IV. Sectoral Performance

kilogrammes or 17.5 per cent over the 2007 figure when 2,305.0 thousand kilogrammes were produced. Pork production recorded 2.6 thousand kilogrammes, an increase of 0.1 thousand kilogrammes or 5.4 per cent over the 2007 production of 2.5 thousand kilogrammes. Mutton production increased in 2008 to 85.1 thousand kilogrammes or by 17.5 per cent compared with the 72.4 thousand kilogrammes recorded for 2007. Beef production increased by 8.3 thousand kilogrammes. This reflected a turnaround in the demand for local beef. Veal output increased significantly by 31.7 per cent to record 8.3 thousand kilogrammes in 2008 compared with 6.3 thousand kilogrammes in 2007. During 2008, milk production decreased to 6,694.4 thousand kilogrammes from the 6,762.3 thousand kilogrammes recorded in 2007. This represented a decrease of 1.0 per cent for the year under review, while Turkey declined by 14.6 per cent to 239.5 thousand kilogrammes.

LIVESTOCK IMPORTS

AND

DAIRY PRODUCT

Beef imports (inclusive of veal imports) increased by 37.1 per cent or 644.6 thousand

kilogrammes in 2008 compared with the 1,738.0 thousand kilogrammes recorded in 2007. Mutton imports decreased by 2,009.7 thousand kilogrammes or 52.7 per cent, from the 3,815.0 thousand kilogrammes recorded in 2007. Pork imports decreased by 6.0 per cent or 72.7 thousand kilogrammes. Poultry imports declined by 117.1 thousand kilogrammes to 397.2 thousand kilogrammes or by 22.8 per cent in 2008, compared with the 514.3 thousand kilogrammes imported in 2007. Fresh egg imports for the year 2008 totaled 20.0 thousand kilogrammes. Fresh milk imports recorded for the review period was 360.5 thousand kilogrammes, an 11.3 per cent decline from the 2007 figure.

ROOT CROP PRODUCTION Within the category of root crop production, cassava and peanuts recorded significant increases in 2008. All other root crops recorded a decrease in their production over the 2007 figures. Herbs production was also noticeable with chive (312.6 thousand kilogrammes) and thyme (187.8 thousand kilogrammes) being the most productive crops in the herbs category.

TABLE 4.1-3 Root Crop Production (’000 Kgs) 2002 -- 2008 Year

2002

2003

2004

2005

2006

2007R

2008

Cassava

397.4

411.6

316.7

198.6

374.7

448.1

621.6

38.7

47.6

44.1

115.4

174.5

156.8

151.4

49.0

-67.6

1,467.5

2,609.8

1,913.0

2,083.9

2,200.9

1,334.6

1,240.8

-7.0

Eddoes Sweet Potatoes

% Change Over 2007

Yams

349.2

1,233.7

603.4

817.5

793.8

646.5

372.8

-42.3

Onions

311.1

338.2

550.8

346.5

444.2

287.3

201.9

-29.7

Peanuts

30.0

62.5

28.2

22.5

21.3

9.3

31.6

239.8

SOURCE: Barbados Statistical Services Department/Ministry of Agriculture and Rural Development

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.1-4 Root Crop Imports (’000 kgs) 2002 -- 2008 Year

2002

2003

2004

2005

2006

2007

Cassava

4,174

5,883

3,507

6,405

1,692

1,582

-6.50

81,482

74,139

91,369

875

78,875

71,775

139,301

94.10

Eddoes

2008

% Change Over 2007

Sweet Potatoes 23,581

19,811

9,790

2,879

5,635

216

36,372

Yams

37,333

25,791

18,625

15,466

17,319

20,716

19.60

1,256,578 1,546,970 1,832,576 2,210,283 1,987,833 1,819,560

1,922,929

5.70

35,076

26.90

Onions Peanuts

18,153

45,876

107,874

91,732

88,295

114,033

47,990

SOURCE: Barbados Statistical Services Department/Ministry of Agriculture and Rural Development

7.0 per cent decrease from the 2007 figure of 1,334.6 thousand kilogrammes.

Cassava production increased by 173.5 thousand kilogrammes from 448.1 thousand kilogrammes in 2007 to 621.6 thousand kilogrammes in 2008. This reflected a 38.7 per cent increase in the total production of cassava over the previous year’s figure.

In 2008, production of onions and eddoes decreased by 29.7 per cent and 67.6 per cent, to 201.9 thousand kilogrammes and 49.0 thousand kilogrammes, respectively. Peanut production increased significantly by 239.8 per cent to 31.6 thousand kilogrammes.

Output in yams declined, with 372.8 thousand kilogrammes produced in 2008 compared with the 646.5 thousand kilogrammes recorded in 2007. This reflected a decline of 42.3 per cent in yam production.

ROOT CROP IMPORTS During the review period, the imports of eddoes increased from 71,775.0 thousand kilogrammes in 2007 to 139,301.0 thousand

Sweet potato output declined in 2008, recording 1,240.8 thousand kilogrammes, a

TABLE 4.1-5 Livestock and Dairy Production (’000 kgs) 2002 -- 2008 % Change Year

2002

2003

2004

2005

2006

2007

2008

Beef

362.3

345.6

244.5

173.3

169.6

136.1

144.4

6.1

73.3

90.1

97.3

78.5

79.0

72.4

85.1

17.5

Mutton Pork Poultry

1,409.9

1,755.9

2,064.4

2,308.1

2,636.9

2,502.0

2,636.8

5.4

11,036.2

12,316.4

13,521.3

15,022.3

13,571.2

14,934.0

14,388.0

-3.7

Veal

54.2

50.3

13.9

8.7

12.6

6.3

8.3

31.7

Eggs

1,603.6

1,619.6

1,928.0

1,384.9

1,986.6

2,305.0

1,902.5

-17.5

Milk

7,426.5

7,016.6

6,620.8

6,256.4

5,569.9

6,762.3

6,694.4

-1.0

n.a

217.3

371.2

275.4

280.3

239.5

-14.6

Turkey

SOURCE: Barbados Statistical Services Department/Ministry of Agriculture and Rural Development

over 2007

Barbados Economic and Social Report 2008

IV. Sectoral Performance

kilogrammes in 2008, reflecting a 94.1 per cent increase in the number of eddoes imported in 2008. Imports of cassava during 2008 were estimated at 1.6 thousand kilogrammes and imports of sweet potatoes stood at 36.4 thousand kilogrammes. There was an increase in the importation of yams by 3.4 thousand kilogrammes or 19.6 per cent in 2008 compared with the 2007 figure of 17.3 thousand kilogrammes. Onion imports increased by 103.4 thousand kilogrammes or 5.7 per cent in 2008 when compared with 1,819.6 thousand kilogrammes recorded in 2007. There were 35.1 thousand kilogrammes of peanuts imported during the review period.

COTTON

was 124, a 47.6 per cent increase over the 2007 figure.

COMMERCIAL BANKS CREDIT Provisional figures for Commercial Banks Credit to the Agricultural Sector showed a substantial decrease of $4.2 million given the $44.5 million recorded in 2008. The Sugar Cane Sub-sector recorded credit of $3.6 million (an increase of $0.8 million from the $2.8 million recorded in 2007); Livestock $35.3 million, (a decrease of $5.2 million over the $40.5 million recorded in 2007); Food Crops $0.9 million, (a decrease of $0.1 million); and other Agricultural Production received $4.6 million, (an increase of $1.0 million over the 2007 credit level).

AGRICULTURAL DEVELOPMENT PLAN

Cotton production for the review period recorded 26.0 thousand kilogrammes of lint, an increase of 6.8 thousand kilogrammes or 35.4 per cent from the 19.2 thousand kilogrammes produced in 2007. This improvement in output was largely attributed to pest scouting and identification. The total area planted and harvested was 301.6 acres or 111.7 hectares. The total number of cotton bales produced for 2008

Under the Agricultural Development Plan, the extension department provided services such as training and development, networking and supporting cooperative activity and facilitating project funding to increase the output of the Agricultural Sector. Irrigation and extension services were provided for farmers, and research into the production of flour from

TABLE 4.1-6 Livestock and Dairy Products Imports (’000s kgs) 2002 -- 2008 % Change Year

2002

2003

2004

2005

2006

2007

2008

over 2007

Beef & Veal

1,580.0

1,163.3

1,678.4

2,122.5

1,786.9

1,738.0

2,382.6

37.1

Mutton

1,394.8

1,540.1

1,456.0

1,370.2

1,570.8

3,815.0

1,805.3

-52.7

Pork

1,084.6

1,160.7

1,266.5

1,478.3

1,137.4

1,219.7

1,147.0

-6.0

Poultry

2,499.3

1,837.0

1,703.7

1,765.2

1,291.0

514.3

397.2

-22.8

27.8

24.1

33.8

36.2

8.9

862.3

n.a

190.1

247.8

300.6

279.0

383.8

323.9

360.5

11.3

Eggs Milk

SOURCE: Barbados Statistical Services Department/Ministry of Agriculture and Rural Development

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.1-7 Production of Cotton Lint (’000 kgs) 2002 - 2008

Year

2002

2003

2004

2005

2006

2007

2008

% Change Over 2007

Cotton Lint

26.9

18.7

22.5

29.4

32.1

19.2

26.0

35.4

SOURCE: Statistical Services Department/Ministry of Agriculture and Rural Development

districts. The most urgent issue was providing irrigation service to farmers. Approximately, 30.0 per cent of the farmers’ meters were malfunctioning or being tampered with.

local cassava proved to be beneficial as the demand for this type of flour increased. The Irrigation Unit operates a surface water stream course for the River Plantation farmers and is due to construct a distribution network system for the River farmers.

INFRASTRUCTURAL DEVELOPMENT

BARBADOS AGRICULTURAL DEVELOPMENT AND MARKETING CORPORATION (BADMC)

The Development Programme saw a considerable investment in infrastructure by the BADMC Irrigation Engineering Unit on the operation and maintenance of irrigation and drainage systems on lands in twelve (12)

The Corporation continued its mission to provide and improve the services needed to increase the output of the agricultural sector. The Land for the Landless Programme sought to increase the amount of placement of farmers,

TABLE 4.1- 8 Commercial Banks Credit to the Agricultural Sector 1997 -- 2008 Year 1997

11,129

18,453

3,307

8,655

41,544

1998

14,249

23,469

3,282

6,331

47,331

1999

17,209

18,026

5,970

6,781

47,996

2000

21,474

31,861

5,544

7,821

66,700

2001

15,433

27,548

4,373

7,265

54,619

2002

11,169

23,012

3,797

7,692

45,670

2003

10,902

22,149

1,286

7,598

41,935

2004R

10,117

15,809

861

5,551

32,338

2005R

8,858

28,194

525

4,992

42,569

2006R

9,246

38,618

391

4,414

52,669

2007R

2,808

40,453

954

4,531

48,746

2008P

3,633

35,308

917

4,607

44,465

Livestock

SOURCE: Central Bank of Barbados

Food Crops

($’ 000)

Sugar Cane

Other

Total

Barbados Economic and Social Report 2008

but there were more applicants than available land. Extension and irrigation services were provided for farmers in the irrigated districts. Overall, there was an increase in the production levels. Research into the production of flours from local root crop by the Food Protection Unit saw a vast increase in the intake of cassava.

LAND FOR THE LANDLESS PROGRAMME The BADMC currently manages 1,795.0 acres of land under its Land Lease Programme, of which 773.5 acres were distributed to eightyseven (87) farmers in five (5) regions. Livestock farmers were seriously hampered by the long wait for the installation of utilities on the River Plantation. The Land for the Landless Programme showed a marked increase in farming activity and production levels during the first half of 2008, but there was a reduction in the remaining months due to persistent high levels of rainfall. The yield from the seventy-seven (77) acres at Bawden and Sedge Pond Plantations was 243.4 thousand kilogrammes, and at the sixty-eight (68) acres at Greenland Plantation it was 250.0 thousand kilogrammes.

FISHERIES The Fishing Industry continued to be a vital contributor to the economic and social development of the country, providing employment directly and indirectly for a vibrant small business sector including fish processing, boat building and fish exports. The total estimated fish landings for 2008 were 3,220.0 tonnes, an increase of 829.0 tonnes or 34.7 per cent from the 2,391.0 tonnes recorded in 2007. The estimated catch for flying fish increased by 1,066.0 tonnes or 82.8 per cent from the 1,288.0 tonnes recorded for 2007 to 2,354.0 tonnes in 2008. Total flying fish catch for the year recorded the highest proportion,

IV. Sectoral Performance

73.1 per cent, of total fish landings. Dolphin catch in 2008 was 428.0 tonnes or 38.2 per cent lower than the previous year when 693.0 tonnes were recorded. This was the second major contributor (13.3 per cent) of the total fish catch for 2008. There was a reduction of 9.0 tonnes or 26.5 per cent from the 34.0 tonnes recorded for King Fish in 2007. The Carangids group comprising Jacks and Cavallies, increased by 100.0 per cent to 16.0 tonnes from the 8.0 tonnes recorded in 2007. Landings of fish within the broad grouping “Any Other Variety (AOV)”, which includes Demersal Reef Species caught in fish pots and Turpits, decreased significantly by 6.4 per cent or 7.0 tonnes in 2008. Most notably, Tunas increased significantly by 149.1 per cent or 85.0 tonnes. Swordfish increased by 9.0 tonnes or 45.0 per cent and Billfish (marlins) increased substantially by 63.0 tonnes or 315.0 per cent. In contrast, Shark catch decreased substantially by 130.0 tonnes to 10.0 tonnes, while Snappers decreased by 8.0 tonnes from the 22.0 tonnes recorded in 2007. The largest proportions of the island’s fish landings were recorded by the Bridgetown and Oistins Fishing Complexes. These two (2) fish markets accounted for approximately 77.0 per cent and 12.5 per cent respectively.

SEA-EGG FISHERIES In 2008, the Fisheries Division continued its collaboration with Barbados National Union of Fisherfolk Organisations (BARNUFO) and volunteer fisher divers to assess the status of local sea-egg stocks. Surveys on the status of the sea-egg numbers indicated that they were still too low to allow for a harvest season in 2008. The composition of the local registered fishing fleet included Moses (535), Launches (245), Iceboats (173) and Long-liners (32). Duty free concessions valued at BDS $4.3 million were granted to the fishing industry in 2008. This included BDS $232,998 granted by the

Barbados Economic and Social Report 2008

IV. Sectoral Performance

Fisheries Division for maintenance to boats, import duty BDS $3.8 million, environmental levy BDS $81.5 thousand, and value added tax BDS $419.7 thousand.

Commerce began the initial stages of crafting an indicative Industrial Policy.

B. MANUFACTURING

According to the Barbados Investment and Development Corporation’s (BIDC) Statistical Summary for 2007 and 2008, approximately 13,626 persons were employed in the manufacturing and related services sector for 2008. This represented a marginal fall-off of 2.4 per cent when compared with the previous year. Employment in the manufacturing sector at the end of 2008 fell to 8,756 employees, which was 6.0 per cent less than the sector’s employment figures (9,317 persons) for 2007.

OVERVIEW During the course of 2008, challenges resulting from trade liberalization and globalization were compounded by the spiralling price of oil and most recently the impact of the global financial meltdown and the declining demand for goods worldwide. Despite this, Barbados’ manufacturing industry was extremely resilient to these international shocks. However, the extent to which the industry can sustain the challenges ahead depends primarily on the manufacturers’ ability to continue to reduce costs and improve competitiveness while consolidating domestic demand for goods. In 2008, the Division of Trade, Industry and

EMPLOYMENT IN THE SECTOR9

Employment in the related Services Sector rose to 4,870 persons, an increase of 219 persons (4.7 per cent) more than in 2007. Food, Beverages and Tobacco remained the major single source of employment, accounting for 3,595 jobs, down by 165 jobs relative to the

TABLE 4.1-9 Fish Landings by Type (Tonnes) 2003 -- 2008 Year Flying Fish

2003

2004

2005

2006

2007

2008

1 912.3

1 185.6

1 111.9

921.6

1 288.0

2 354

Dolphin

458.1

454.7

356.7

475.7

693.0

428

Kingfish

31.9

42.3

24.5

39.2

34.0

Billfish

68.2

61.8

131.0

97.1

20.0

162.0

191.8

265.2

181.2

57.0

142

15.4

5.8

6.3

13.3

22.0

Reef Fish (Carangids) 25.6

Tuna Snapper

32.0

15.3

19.8

8.0

8.1

8.4

11.8

9.9

140.0

Swordfish

16.1

19.0

33.1

29.9

20.0

Any other Variety

96.2

130.6

112.7

106.8

109.0

116

Shark

SOURCE: Fisheries Department, Ministry of Agriculture and Rural Development

These employment numbers only capture persons working in companies that are listed in the BIDC database.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.1-10 Fishing Fleet by Type 2001 -- 2006

Type of vessel

2003

2004

2005

2006

2007

2008

Moses Launches Ice boats Long Liners

485 254 193 22

468 253 174 30

477 242 173 36

486 242 167 37

498 240 168 36

535 245 173 32

Total

954

925

928

932

942

985

SOURCE: Fisheries Department

previous year. The Handicraft sub-sector recorded the biggest lost of employment falling by 27.3 per cent to 117 persons. Employment in the Non-Metallic Mineral Production subsector decreased to 1,155 persons, from 1,207 in 2007. The number of persons employed in Textiles, Apparel and Leather sub-sector fell, moving from 729 persons to 584 persons in the review period. The Chemicals and Chemical Product; and the Paper Product, Printing and Publishing sub-sectors both created an additional three (3) jobs, which increased employment to 398 persons and 755 persons, respectively, by the end of 2008. The Wood, Wooden Products and Fittings sub-sector employed 435 persons. Noticeably, fewer persons were employed in the Fabricated Metal Products, with levels falling from 952 to 889 persons. During 2008, Information Services provided 2,136 jobs, as this sector continued to climb when compared with 1,901 of 2007. There were 1,403 persons employed in Contract and Construction Services, 33 persons more than in 2007. Employment in the Accounting and International Financial Services stood at 647 persons, up from 633 a year earlier.

INDEX OF INDUSTRIAL PRODUCTION The Index of Industrial Production for 2008 showed that output in the Industrial sector (93.4) fell by 1.6 points or 1.7 per cent when compared with output for the same period in 2007. Of the three (3) main categories: Mining and Quarrying (148.5) decreased by 7.2 points or 4.6 per cent below that of 2007; Manufacturing (78.6) dropped 1.6 points or by 2.0 per cent; and Electricity, Gas and Water (151.9) fell by a marginal 0.9 per cent. Within the Mining and Quarrying sub-sector, the index for the Mining of Crude Oil fell to 63.2 points and Stone Quarrying (211.0) contracted by 11.5 points or 5.2 per cent below the index of 2007. The three main sub-sectors contributing to manufacturing output for the review period were: non-metallic mineral products (292.4), wooden furniture (166.7), and chemicals (118.5). The wearing apparel sector registered the largest decline in output of 41.5 per cent, with the index moving from 20.5 to 12.0 in 2008. This significant decline in output was attributed to the loss of one of the sector’s major apparel manufacturers, that is, the Barbados Industry Limited to a fire in July 2008.

Barbados Economic and Social Report 2008

Figure 10 Index of Industrial Production 1997-2008

SOURCE: Barbados Statistical Service

CREDIT TO MANUFACTURING In 2008, commercial bank credit to the Manufacturing Sector amounted to $129.6 million, representing a 4.8 per cent increase above the $123.6 million for the identical period 2007. Credit to the Building Materials and Metal Products sub-sector totalled $39.5 million, approximately 30.5 per cent of the total credit. Food and Non-Alcoholic Beverages owed $15.9 million compared with $15.4 million a year earlier. Alcoholic Beverages and Tobacco’s indebtedness stood at $20.1 million down 9.6 per cent for the same period of 2007. The Petro-Chemicals sub-sector owed the banking system $6.3 million, which represented a decline of 8.8 per cent. Figure 11 Commercial Bank Credit to the Manufacturing Sector

IV. Sectoral Performance

million, approximately $1.6 million less than the earnings for 2007. Exports of Food and Beverages expanded by $10.9 per cent to reach $59.2 million when compared with $53.4 million in the previous year. Sugar contributed $45.0 million to export earnings, some $7.7 million above the $37.3 million recorded in 2007. Electrical Components brought in $28.3 million compared with $27.6 million earned in 2007. Earnings from the export of Lard and Margarine, which rose to $19.8 million, were higher than the $14.8 million one year earlier. “Other domestic exports”, comprising other Crude Petroleum and Portland Building Cement, provided $240.3 million of total domestic exports. CARICOM, the largest export market, contributed $271.9 million to export earnings representing a 0.1 per cent decrease over the $271.6 million exported in 2007. Trinidad and Tobago continued to be the largest trading partner purchasing $78.0 million compared with $86.9 million the previous year. Exports to St. Lucia amounted to $41.3 million, 5.0 per cent above the 2007 figure of $39.3 million. Exports to Jamaica fell by approximately $2.5 million to $30.4 million during 2008. Antigua imported $17.7 million compared with $17.2 million in 2007, while Grenada purchased $17.3 million, some $0.4 million less than in 2007. Exports to Guyana expanded significantly to $26.3 million compared with $18.3 million a year earlier. St. Vincent purchased $23.6 million during the review period, or approximately $0.8 million less than in 2007. Exports to St. Kitts/Nevis rose by 44.9 per cent to $14.2 million from $9.8 million in 2007. The value of exports to Suriname fell from $9.8 million in 2007 to $8.5 million during the review period. Dominica imported $9.1 million, an increase of approximately $0.5 million over the previous year.

SOURCE: Central Bank of Barbados

DOMESTIC EXPORTS During 2008, total domestic exports amounted to $526.3 million compared with $513.5 million in 2007, representing a 12.1 per cent decline. Exports of Chemicals decreased by 10.5 per cent to reach $66.8 million compared with $74.6 million a year earlier. Rum earned $66.0

Excluding CARICOM, the United States of America and the United Kingdom remained the major international trading partners. The USA imported $187.4 million, compared with $170.2 million in 2007, while exports to the UK fell to $82.3 million from $94.4 million. Canada purchased $20.7 million during 2008, compared with $17.9 million the previous year.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.2-1 Direction of Trade with CARICOM Countries Domestic Exports 2003 -- 2008 Country

2003R

2004R

Antigua

8,294

9,633

Belize

2,370

Dominica

9,298

Grenada Guyana Haiti

2005R

(BDS $000)

2006R

2007R

2008P

15,109

19,976

17,158

17,667

2,629

3,204

3,628

4,428

4,311

7,414

8,103

8,859

8,562

9,059

11,909

12,650

19,547

15,151

17,701

17,290

11,777

12,521

11,634

11,196

18,308

26,285

625

698

1,558

2,167

1,650

605

27,097

24,142

34,648

36,966

32,938

30,446

8,932

10,784

12,029

12,851

9,804

14,231

17,660

20,816

33,084

39,551

39,379

41,340

Montserrat

1,034

1,362

944

8,766

528

607

Suriname

5,825

6,799

5,253

3,827

9,841

8,488

Trinidad & Tobago

50,525

53,465

67,022

76,969

86,855

77,990

St. Vincent

14,546

17,355

19,007

22,702

24,412

23,615

169,897

180,267

231,142

262,609

271,564

271,934

Jamaica St. Kitts/Nevis St. Lucia

Total

SOURCE: Barbados Statistical Service

INVESTMENT IN MANUFACTURING AND RELATED SERVICES Total investment in the manufacturing and related services stood at a figure of $65.8 million, 4.7 per cent lower than the $69.1 million invested in 2007. In 2008, new investments accounted for $60,000. This measured 4.8 per cent of the

value of new investment calculated in 2008 or 0.1 per cent of total investment. Investment for the expansion of existing plant stood at an estimated $65.8 million in comparison with $67.9 million a year earlier. Manufacturing decreased to $58.2 million, while services increased to $7.6 million when matched against the same period in 2007.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.2-2 Investment in BIDC Assisted Companies 2004 -- 2008

(BDS $) Investment

2004R

2005P

2006

2007R

2008P

17,750

156,236

650,000

3,000

15,000

8,906,410

745,000

2,475,500

1,244,200

15,000

30,000

8,939,160

901,236

3,125,500

1,247,200

60,000

47,361,157

53,703,286

50,802,097

66,160,601

58,152,704

Services

1,055,016

5,268,537

1,700,851

1,708,851

7,634,868

Sub-Total

48,416,173

58,377,490

52,502,948

67,869,452

65,787,572

Grand Total

57,355,333

59,278,726

55,557,948

69,116,652

65,847,572

New: Manufacturing Services Other Sub-Total Expansion: Manufacturing

SOURCE: Barbados Investment and Development Corporation

ENTERPRISES ESTABLISHED BY BIDC (MANUFACTURING AND RELATED SERVICES) There were two (2) new companies established with the assistance of the BIDC in 2008 compared with thirteen (13) in 2007. The two (2) new enterprises were established in Food, Beverages and Tobacco, and Contracting & Construction Services.

According to the BIDC’s survey of companies, approximately 1,176 new jobs were created, a decline of 1,115 from 2007. Information Services created some 302 new jobs, Food, Beverages and Tobacco (232) and Contracting & Construction Services (142). With the exception of Architectural Services, all other sub-sectors registered a decline in the number of new jobs when compared with 2007.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.2-3 New Enterprises Established 2004 -- 2008 Categories

2004

2005

2006

2007

2008P

Food, Beverages and Tobacco

Textiles, Apparels and Leather

Wood, Wooden products and Leather

Paper Products, Printing and Publishing

Plastic Products

Non-Metallic Mineral Products

Fabricated Metal Products

Precision Instruments

Electronic Components and Devices

Handicraft

Other Manufacturing

Graphic Art & Public Relations

Contract & Construction Services

Technical & General Consulting

Information Services

Live Animals and Vegetables

Other Services

Total

SOURCE: Barbados Investment and Development Corporation (BIDC) Division of Trade, Industry and Commerce

THE INDUSTRIAL INVESTMENT AND EMPLOYMENT FUND (IIEF) At the end of 2008, the IIEF saw an additional $0.9 million worth of approved loans.

Total funds disbursed amounted to $2.5 million. There were no new lapsed approvals at the end of the year. The cumulative value of approved loans reached $17.5 million with $15.2 million being disbursed.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.2-4 Employment in the Manufacturing Sector and Related Services 2004 -- 2008 Employment in Manufacturing & Related Services 2004-2008 Sub-Sector

2004R

2005R

2006R

2007R

2008P

Food, Beverages & Tobacco Textiles, Apparel & Leather Wood, Wooden Prod. & Fittings Paper Prod, Print & Publishing Chemicals & Chemical Products Plastic Products Non-Metallic Mineral Products Fabricated Metal Products Precision Instruments Electronic Components & Devices Handicraft Other Manufacturing Manufacturing Sub-Total1 Accounting and Financial Services Advertising & Public Relations Services Graphic Art & Photography Services Architectural Services Contract & Construction Services Technical & General Consulting Services Engineering Services Information Services Repair & Refabrication Services Other Services Total Services

3 828 718 479 876 412 331 1 056 897 137 455 157 130 9 476 526 108 1 91 1 242 73 102 1 865 15 175 4 198

3 728 741 493 1 130 379 328 1 101 922 141 449 164 129 9 705 516 109 1 89 1 087 72 106 1 618 14 329 3 941

3 630 775 511 1 146 491 297 1 150 940 116 432 165 152 9 805 538 91 8 88 1 336 74 108 1 770 16 345 4 374

3 760 729 431 752 395 262 1 207 952 169 372 161 127 9 317 633 108 3 86 1 370 63 110 1 901 13 364 4 651

3 595 584 435 755 398 238 1 155 889 173 290 117 127 8 756 647 97 3 87 1 403 54 114 2 136 11 318 4 870

13 674

13 646

14 179

13 968

13 626

Total

SOURCE: Barbados Investment and Development Corporation 1

These employment numbers only capture persons working in companies that are listed in the BIDC database

THE SPECIAL TECHNICAL ASSISTANCE PROGRAMME (STAP) At the end of 2008, the STAP fund extended benefits valued at $4.6 million. Since the start of the Fund, total benefits extended valued $32.6 million of which 700 recipients would have benefitted.

C. TOURISM OVERVIEW During 2008, Barbados earned a record 2.4 billion from the tourism industry in spite of the increasingly turbulent environment which brought with it record high fuel prices, major

Barbados Economic and Social Report 2008 airlift reduction, collapsing airlines and contracting economies in major markets. However, the country benefited significantly from the increased visitor spending which moved to around US$189 per person during the year.

LONG-STAY AND CRUISE P ASSENGER ARRIVALS

IV. Sectoral Performance

TOURIST ARRIVALS BY COUNTRY OF ORIGIN In 2008, UK arrivals stood at 225,464 persons, up 0.4 per cent over the 224,532 arrivals in 2007. This influenced the increase in the market share of UK arrivals, which increased marginally to 39.0 per cent of all arrivals to Barbados.

Total long-stay arrivals to Barbados decreased by 0.9 per cent as the island saw 567,667 visitors to its shores during the year. Much of this activity was seen during the first half of the year.

Arrivals from the US stood at 132,012 persons in 2008, down 1.8 per cent over the 134, 417 persons in 2007. Arrivals from Trinidad and Tobago fell 7.3 per cent to 28,444 persons in 2008, the second consecutive year of declines from this market.

Barbados’ relatively strong summer performance in many ways reflected new strategies employed by local tourism partners for early booking as well as the appeal of Crop Over and a vibrant sports tourism programme.

On the other hand, tourist arrivals from other CARICOM countries increased 4.7 per cent rising from 68,955 persons in 2007 to 72,185 persons in 2008.

Amidst the global economic crisis cruise arrivals declined by 3.0 per cent to record 597,523 cruise arrivals for 2008.

Likewise, tourist arrivals from the Canadian market continued its positive performance, growing 7.5 per cent to 57,334 persons in 2008 from 53,335 persons in 2007.

Figure 12

SOURCE: Barbados Statistical Service

Arrivals from Germany also increased 9.6 per cent during the year to 6,101 German visitors compared to 5,569 persons in 2007. Other European arrivals however fell 4.6 per cent to reach 20,520 arrivals in 2008 as compared to the previous year when there were 21,509 arrivals. Arrivals from other destinations experienced tremendous reduction falling 24.7 per cent from 35,610 persons in 2007 to 26,813 persons in 2008.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.3-1 Tourist Arrivals by Country of Residence 1998 -- 2008 United Other Kingdom Germany Europe

Trinidad Other & Tobago CARICOM

Year

U.S.A.

Canada

1998

106 300

59 946

186 690

12 109

51 499

19 785

50 573

45 280

512 397

1999

104 953

57 333

202 772

9 553

31 668

25 005

61 122

22 208

514 614

2000

112 153

59 957

226 787

7 850

26 138

23 215

64 209

24 387

544 696

2001

106 629

52 381

217 466

6 474

22 185

21 010

59 075

21 858

507 078

2002

123 429

46 754

192 606

5 931

19 397

25 559

64 118

20 105

497 899

2003

129 326

49 641

202 564

7 612

21 914

27 530

69 279

23 345

531 211

2004

129 664

50 032

213 947

6 970

23 060

26 492

77 845

23 492

551 502

2005

131 005

47 690

202 765

6 995

19 857

30 889

83 886

24 447

547 534

2006

130 757

49 197

211 520

7 478

21 922

34 480

82 496

24 691

562 541

2007R 133 519

52 981

223 575

5 549

21 509

30 404

68 979

36 421

572 937

2008P

57 334

225 464

6 101

20 520

28 444

72 185

26 813

568 873

132 012

SOURCE: Barbados Statistical Service

Figure 13

SOURCE: Barbados Statistical Service

Other Total

Barbados Economic and Social Report 2008

INVESTMENT IN THE CULTURAL SECTOR

CROP OVER Crop Over is our premier national festival and its success impacts all economic and social activity in Barbados. Beginning in May and continuing throughout the summer with various different events, Crop Over is Barbados’ biggest, loudest and best-loved festival which sees the whole island taken over by the party spirit. Dating back to the 1780s when the island was one of the biggest sugar producers in the world, the end of the sugar cane harvest was always celebrated with big parties. And the tradition continues today with added extravagance and flamboyance. The event gets underway with the ceremonial delivery of the last sugar canes of the harvest and the crowning of the carnival king and queen. Events continue for the next five weeks and revellers can expect a heady mix of live music, dancing, carnivals, markets, cultural presentations and more, all served with characteristic Barbadian spice and flavour. During 2008, a total of $6.6 million was expended on this season. This represented a 38.9 per cent increase or $1.9 million above what was expended in 2007.

IV. Sectoral Performance

During 2008, a total of $952,968 was expended on NIFCA, which represented a 6.3 per cent decrease on the $1.0 million expended in 2007. On the other hand revenue from NIFCA for 2008 stood at $902,332 in 2008, a 14.7 per cent or $116,230.

DEVELOPMENT AND TRAINING A total of $731,248 was spent on cultural development and training in 2008. This represented an increase of 112.6 per cent or $387,400. This expenditure went towards financing the following training workshops offered by the NCF: TABLE 4.3-2 NCF Cultural Workshops 2008 Persons Trained 1

Literary Arts

175

Special Projects

350

Theatre Arts

432

Dance

445

Visual Arts

135

Music

677

Other

D. CONSTRUCTION

NIFCA

During 2008, the Construction Sector grew slightly although at a slower rate than in the previous year. The sector contributed 9.6 per cent, or an estimated $95.5 million to real GDP, representing a 3.4 per cent decrease compared with $98.9 million in 2007. Real output of mining and quarrying totalled $9.3 million or 2.2 per cent above the $9.1 million recorded in 2007.

The National Independence Festival of Creative Arts (NIFCA) has always sought to unearth the very best of Barbadian talent, encouraging persons from all walks of life to create and submit their entries in seven disciplines: dance, music, drama, literary arts, culinary arts, fine art and craft and photography.

During the review period, the number of units constructed stood at 999 compared with 898 in 2007. This represented an increase of 11.3 per cent. The construction of wooden structures decreased by 20.0 per cent, while masonry and mixed structures grew by 15.0 per cent and 13.0 per cent respectively.

In addition, revenue from the 2008 Crop Over season stood at $5.6 million. This represented a 26.6 per cent increase or $1.1 million more than received in 2007.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

The number of mortgages extended by various lending agencies with respect to overall construction, both existing and new construction, experienced no change when compared with the previous period. Outstanding mortgage loans recorded for housing also showed no growth between 2007 and 2008.

Imported building materials increased by 1.6 per cent to $265.0 million compared with $260.9 million in 2007. Cement production fell for the third consecutive year reaching 301.4 thousand tonnes, 4.8 per cent below the 316.5 thousand tonnes produced during 2007. Quarrying production fell by 2.1 per cent from 1,181.8 thousand tonnes in 2007 to 1,157.5 thousand tonnes in the review period.

TABLE 4.4-1 Selected Indicators of the Construction Sector 2002 -- 2008

Year

Building Materials Imported

Cement Sales Local

($M)

(Tonnes 000)

Cement Production (^)

(Tonnes 000)

Production for Quarrying*

New Mortgages

Employment in Construction & Quarrying

(Tonnes 000)

($M)

(000)

2002R

161.9

147.8

297.7

1,212.0

122.7

13.2

2003R

171.1

150.6

325.1

975.0

114.0

12.3

2004R

205.9

154.0

322.7

1,013.0

186.8

13.4

2005R

256.4

199.3

340.7

948.0

196.4

13.2

2006R

245.0

160.0

337.8

1,081.4

212.4

14.5

2007R

260.9

191.1

316.5

1,181.8

201.9

15.4

2008P

265.0

174.6

301.4

1,157.5

223.1

13.6

SOURCE: ^ Arawak Cement Plant

Barbados Statistical Service Central Bank of Barbados * includes stone and marl

CREDIT TO HOUSING At the end of the review period, the value of outstanding mortgage loans was estimated at $2,657.9 million, compared with $2,433.2 million in 2007. The sector owed the commercial banks $1,370.2 million, approximately 14.9 per cent above the $1,192.7 million outstanding at the end of the previous year. Indebtedness to trust and mortgage companies rose from $725.6 million in 2007 to $785.1 million at the end of 2008. Credit unions provided credit of approximately $325.4 million at the end of 2008, a decrease of $21.5 million below the

figure recorded at the end of 2007. Total obligations to the insurance companies stood at $177.2 million by year end. Approximately 711 new mortgages were extended during the review period ending June 2008, compared with 748 for a similar period a year earlier. Of these loans, 471 were for new construction, while 240 were for extensions or renovations to existing units. Commercial banks provided 135 loans for new construction and 189 for extensions. New residential construction received 336 loans from trust and mortgage companies, while existing units received fifty-one (51) loans.

Barbados Economic and Social Report 2008

PROGRAMMES/PROJECTS UNDERTAKEN DURING 2008

JOINT VENTURE PROGRAMME During the review period, infrastructure work was completed in Arch Hall, St. Thomas; Coverley, Christ Church; Hoytes Village, St. James; Bulkeley Meadows, St. George; Rices, St. Philip; Old Deanestown and Deanestown Heights in St. James. Construction of houses under this Programme continued at Coverley, Bulkeley Meadows, Hoytes Village, Grazettes and Lower Burney. At the end of the period, 37.0 per cent or 273 of the 729 lots were sold and a total of seventy-eight (78) houses were completed.

SALE OF TERRACED UNITS AND 20-YEAR TRANSFER PROGRAMME SALE OF TERRACED UNITS The aim of this programme is to transfer tenants into owners and expand the base of property ownership within the low-income grouping. During the period, the Corporation completed the construction of parapet walls to 331 units to all estates. In addition, some thirtyfour (34) deposits were made, totalling $201,417. The legal department of the National Housing Corporation (NHC) continued the process of conveying units to purchasers in Bonnetts, Bagatelle, Bayville, Lammings and Haynesville.

20-YEAR TRANSFER PROGRAMME In 2008, Cabinet approved a policy to give effect to a manifesto commitment to transfer free of cost, except for legal fees, units occupied by tenants and occupants for twenty (20) or more years.

IV. Sectoral Performance

During the review period, 2,039 offer letters were forwarded to qualified tenants and occupants. At the end of 2008, some 1,730 or 85.0 per cent of the tenants and occupants accepted the offer by signing and returning the letters. Approximately $650,000 in arrears was collected from tenants and occupants responding to the offer of free transfer.

LOANS For the review period, 103 applications were received and 113 approved, some of which were from the previous period. The total sum approved was $3.2 million and the amount disbursed was $4.8 million.

HELP PROGRAMME During 2008, the NHC embarked on a new housing initiative called the “Housing Every Last Person” (HELP) to satisfy the demand of Barbadians for reasonably priced houses. The aim of this programme was to provide quality, affordable homes at prices ranging between $40,000 and $100,000 for a complete house. At the end of 2008, seventy-three (73) houses were completed with thirteen (13) of them being occupied and ten (10) were allocated to purchasers. Land in the programme was sold separately at prices ranging between $15,000 and $21,000.

TENANTRIES PROGRAMME At the end of 2008, a total of 6,698 lots were surveyed for qualified tenants within 332 plantation tenantries, with financial assistance from Government. Approximately $2.9 million was expended for surveying services. The total number of tenants who attained security of tenure under the programme was 4,831. This represented 72.0 per cent of all surveyed lots. Lot plans were also received for nineteen (19) parcels of land. During 2008, the Ministry of Housing and Lands (MHL), under the Rural Tenantries

Barbados Economic and Social Report 2008

Programme allocated $951,163 to the NHC to process payment of subsidies to qualified tenants.

HOUSING RELOCATION EMMERTON RELOCATION PROJECT The construction of twenty-eight (28) single and three (3) two-storey detached houses, plus four (4) blocks of terraced units comprising nineteen (19) units, and one (1) block of four (4) bed-sitters were completed in February 2008. The relocation of households commenced in August of the same year. At the end of 2008, twenty-four (24) persons were relocated to Barbarees Hill: --

Twelve (12) house-owners moved into single detached houses

Five (5) house-owners into terraced units

Six (6) persons moved into terraced units

One (1) into a bed-sitter for rent.

E. INTERNATIONAL FINANCIAL AND BUSINESS SERVICES OVERVIEW Despite the global economic downturn during 2008, Barbados continued to be a competitive jurisdiction for international businesses of substance and a regional hub for business activity in the CARICOM region. Having completed the third Caribbean Financial Action Task Force (CFATF) Mutual Evaluation, Barbados remained a reputable jurisdiction adhering to the highest standards of international best practice, fiscal transparency as well as expanding its tax treaty network. Although the sector did not perform as well as

IV. Sectoral Performance

in 2007, when International Business Companies (IBCs) licensed reached a record high, there were however major initiatives undertaken in 2008 to buttress further development within the international business sector. During the review period, the services sector was in the forefront of the ACP/ EU Economic Partnership Agreement (EPA) with CARIFORUM which was signed on October 15, 2008. This partnership ushered in a new era of trade relations between the CARIFORUM member States and the European Union thereby creating an unparallel opportunity for further development of new products and markets of international business within the region.

ECONOMIC CONTRIBUTION OF SECTOR

THE

The International Business sector remained the second largest earner of foreign exchange after tourism. Preliminary data on the sector revealed that the sector provided opportunities, direct and indirect, for skilled and semi-skilled workers. The sector over the years has also contributed to the enhanced development and expansion of Barbados’ information technology infrastructure. During 2008, the international business sector contributed 60.0 per cent of all corporate taxes revenues or $2.7 million. This represented a 46.7 per cent increase in revenues collected over the previous year.

ENTITIES LICENSED With respect to entities licensed, moderate growth was recorded in 2008 in terms of overall company formation. The number of new entities licensed at the end of the review period, were 579 compared with 672 in 2007, representing a 13.8 per cent decrease for new entities licensed. New registrants of International Business Companies (IBCs) decreased by 4.9 per cent from 506 in 2007 to 481 in 2008, bringing the

Barbados Economic and Social Report 2008

IV. Sectoral Performance

Management Companies (EMCs) Licensed increased by two (2) to record three (3) EMCs licensed in 2008.

total number of IBCs licensed to 2,995. Meanwhile, the number of new International Societies with Restricted Liability (ISRLs) licensed in 2008 was eighty-three (83) as compared with 151 in 2007, a 43.0 per cent decline in licenses over the review period.

During the review period, two (2) new international banks licences were issued compared with five (5) in 2007. The dissolution of Foreign Sales Corporations (FSCs) continued as a result of the WTO Ruling against FSCs in 2000 with thirty-three (33) entities licensed at the end of 2008 compared with fifty-four (54) at the end of the preceding year.

In the insurance subsector, the number of Exempt Insurance Companies (EICs) licensed was ten (10) in 2008 compared with nine (9) in 2007. The number of Exempt

TABLE 4.5-1 Number of New International Business Entities Licensed for the years 2003 -- 20081

___________________________________________________________ 2003

2004R

2005

2006

2007

2008P

274

297

372

391

506

481

FSCs2

Exempt Insurance Companies

Exempt Insurance Management Companies

Offshore Banks

____________________________________________________________ IBCs

Societies with Restricted Liability

133

151

Total

323

379

426

537

672

579

SOURCE: International Business Division Ministry of Economic Affairs and Development NOTES:

The figures represent the number of licences issued to new international business entities.

As a result of the WTO ruling against FSCs, no new licences were issued from 2001.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

SUPERVISION AND REGULATION

sector so as to ensure that Barbados maintained its reputation as a well regulated, transparent and user-friendly domicile.

Supervision and regulation continued to be at the forefront of the International Business Unit (IBU) activities during the review period. The unit focused on the implementation of international best practices in the supervision and regulation of International Business Companies (IBCs), Societies with Restricted Liability (SRLs) and registration of International Trusts. In so doing, the IBU continued to strive for the appropriate balance between its regulatory functions and supervision within the

During 2008, the IBU strengthened its administration and operational systems and took requisite steps towards the enactment of legislation for the registration of Agents. Special emphasis was also placed on the Unit’s commitment in the International Business Charter relating to timeframes for issuance of licences.

TABLE 4.5-2 Total Number of International Business Entities Licensed for the years 2004 -- 20081 ___________________________________________________________ 2004

2005

2006

2007R

2008 P

2 137

2 323

2 714

2 448

2 995

FSCs2

182

170

Exempt Insurance Companies

183

194

202

164

Exempt Insurance Management Companies

Offshore Banks

240

258

391

417

524

2 821

3 030

3 488

3 156

3 785

____________________________________________________________ IBCs

Societies with Restricted Liabilities Total

SOURCE: International Business Division Ministry of Economic Affairs and Development NOTES:

The figures represent annual renewals of International Business Entities plus newly licensed ones. 1

The figures represent existing FSCs that renew their licences annually. It is expected that the FSC regime would be phased out over time. 2

Barbados Economic and Social Report 2008

LEGISLATION AND TREATY NEGOTIATIONS DOUBLE TAXATION AGREEMENTS AND BILATERAL INVESTMENT TREATIES The negotiation of Double Taxation Agreements (DTAs) and Bilateral Investment Treaties (BITs) continued to be an integral part of Barbados’ development strategy as an International Financial and Business Services Centre. In light of the renewed vision of the Government for the development of international business and in the interest to comply with the national focus to develop Barbados as a treaty-based domicile, the International Business Unit simultaneously pursued the negotiation of agreements that mitigated the effect of double taxation along with those which provided the most advantageous platform for the promotion and protection of investment. At the end of 2008, Barbados had seventeen (17) Double Taxation Agreements (DTAs) in force. The DTAs in force were with the Caribbean Common Market (CARICOM), the United States, Canada, United Kingdom, Finland, Norway, Malta, Sweden, Switzerland, Cuba, Venezuela, China, Ghana, Mauritius, Botswana, Austria and the Netherlands. During 2008, negotiations were carried out on a Double Taxation Agreement (DTA) with the United Mexican States. In addition, negotiations of a Double Taxation Agreement with the Grand Duchy of Luxembourg were concluded during the period May 26-31, 2008.

SERVICES DEVELOPMENT During 2008, Government continued to place significant attention on strengthening the institutional framework in services trade development in Barbados. In this regard, the development of Barbados as a service economy was supported by the completion and signature of the CARIFORUM/EU Economic Partnership Agreement (EPA).

IV. Sectoral Performance

The signature of the CARIFORUM/EU Economic Partnership Agreement on October 15, 2008, saw a new position on the way forward for the Services sector. The International Business Unit sought to ensure that the Services document addressed the needs of both the public and private sector and accomplished the requirements of the region, with respect to market access to the EU member states. During the review period, the International Business Unit also played an integral role in the second stage of the WTO Trade Policy Review of Barbados by reviewing the report of the WTO Secretariat and suggested alternative amendments. The Unit sought to ensure that any reviews portrayed a balanced outlook of Barbados’ position in its move towards developed country status. Additionally, the Government of Barbados continued to institute changes in relation to its immigration policy so that Barbados can take advantage of any regional and international agreements.

RESEARCH AND DEVELOPMENT The research and development capacity of the IBU remained one of the central pillars in Government’s efforts to improve the ability of the international business sector to seize and exploit new and emerging market opportunities. Hence, the focus during the review period was to develop a market-oriented policy framework, which reflected a level of flexibility while remaining committed to the expansion and diversification of the International Business sector. To this end, the research and development unit examined the following areas: y

Prepared a paper presenting a comparative examination of the Trust legislation in competing Caribbean jurisdictions with a view to improving trust services. This included the registration of different trusts as well as the regulation of the sector and trust service providers in the context of the International Corporate and Trust Service Providers Legislation.

Barbados Economic and Social Report 2008

Continued work on several outstanding issues in the financial services sector with inputs from stakeholders such as the Barbados International Business Association (BIBA). This included research on the effects of increased regulation of offshore banks under the Financial Action Task Force (FATF) guidelines and those of the Basel Committee on Banking Supervision. Continued revision of the Financial Services legislation with a view to improving the provision of services to this sector. Amendments to the IBC and SRL Acts so as to exempt them from the requirement of Section 179 (4A) of the Companies Act, Cap. 308, which required that instruments of share transfer be presented to the Registrar within thirty (30) days for assessment and taxation. Continued research into the possible effects of recent OECD updates to the Draft Taxation Model and the ramifications for Barbados, which bases its treaties on this model.

F. ENERGY AND UTILITIES OVERVIEW The Barbados National Oil Company drilled no new wells during 2008. At

IV. Sectoral Performance

December 31, 2008 an estimated 1.9 million barrels of crude oil and 4,374,593 thousand cubic feet (mcf) of gas were available for extraction. These figures represented a drop in reserves as compared with 2007.

PRODUCTION During the period under review, the production of crude oil declined by approximately 9.0 per cent. Production for 2008 stood at 289,692 barrels while output for the same period during 2007 accounted for 317,010 barrels. The decline was mainly attributed to the fact that no new wells were drilled to supplement existing wells. In 2008, natural gas production registered 727,568 mcf representing a 1.6 per cent decrease when compared with 739,083 mcf produced in 2007.

OIL AND GAS: SALES AND CONSUMPTION Oil sales for 2008 decreased by 4.7 per cent, to 289,252 barrels compared with 303,632 barrels in 2007. Gas sales totalled 474,952 mcf in 2008, representing a 4.0 per cent drop compared with the previous year. Sales volumes in the National Petroleum Corporation (NPC) inventory decreased by 5.1 per cent, from 11,773,870 cubic metres (cm) in 2007 to 11,165,735 cubic metres in 2008. However, total natural gas sales increased by 2.9 per cent to $13.8 million from $13.4 million in the previous year. There were slight increases in consumption in the residential and commercial sectors but a decline in the category of Special Industrial Gas.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

During the period under consideration, the NPC’s expansion programme continued during the year as the network of mains increased by 3.7 miles and gained 471 new customers, an increase of 2.1 per cent to a total base of 22,794.

As a result of the significant upward movements in the price of international oil and the volatility of the market, there were five (5) price adjustments in domestic fuel prices during 2008.

ELECTRICITY

The Offshore Petroleum Act (2007) and the Offshore Petroleum (Taxation) Act (2007) were approved by Parliament and awaited proclamation. The delay was due to the need to amend the original draft in light of technical issues in the interpretation of the legislation. In 2008, the Natural Resources Department continued to review the legislation related to quarrying and mining in Barbados. In addition, the department awarded two (2) offshore blocks to BHP Billiton subject to finalization. Four (4) companies pre-qualified for the 2008 Offshore Licensing Round.

Electricity sales for 2008 decreased by 0.5 per cent to 935.9 million kwh compared with 940.8 million kwh in 2007. The largest category of users continued to be the Domestic Sector, accounting for 32.0 per cent of total sales or 299.9 million kwh. The Barbados Light and Power Company Limited (BL&P) invested $24.0 million to upgrade its capital infrastructure to accommodate forecasted demand.

REFINED PETROLEUM PRODUCTS In 2008, there was an overall decline in the demand for refined petroleum products when compared with 2007. Gasoline consumption fell by 1.1 per cent to 817,603 barrels from 827,069 barrels in 2007. Diesel consumption increased by 9.3 per cent to 819,144 barrels from 749,406 barrels in the previous year. Fuel oil consumption, in contrast with the previous year, decreased 9.0 per cent to 1,490,523 barrels. Kerosene sales declined by 106.4 per cent to 2,313 barrels from 4,775 barrels for the same period in 2007.

NATURAL RESOURCES

RENEWABLE ENERGY AND ENERGY CONSERVATION

During 2008, a Public Persuasion Programme aimed at encouraging Energy Conservation, and use of the Alternate Energy was unveiled. The aim of this programme was primarily to demonstrate ways of using renewable energy and reducing energy. In addition, energy audits were completed on a number of Government buildings.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.6-1 Oil, Gas & Utility Production & Consumption 2005 - 2008

PRODUCTION Domestic Crude Oil (Bbls) Domestic Natural Gas (Mcf) Domestic LPG (Bbls) No. of wells drilled OIL SALES (Bbls) GAS SALES (Mcf)

2005

2006

2007

2008

JAN-DEC TOTAL 348,728 847,416 0 3

JAN-DEC TOTAL 339,692 826,342 0 0

JAN-DEC TOTAL 317,010 739,083 0 0

JAN-DEC TOTAL 289,692 727,568 0 0

347,070 461,225

303,632 493,157

289,252 474,952

342,164 506,841

NATURAL GAS SALES VOL. (CM) VALUE $ VOL. (CM) VALUE $ VOL. (CM) VALUE $ VOL. (CM) VALUE $ Residential 2,276,838 3,367,358 2,352,514 3,479,605 2,430,479 3,594,705 2,477,006 3,663,197 Commercial 5,568,341 6,703,932 5,630,846 6,798,939 6,418,518 7,713,527 7,010,495 8,410,887 Industrial 580,311 308,744 847,615 534,959 1,493,119 1,011,695 1,111,530 1,101,510 Special Industrial 3,492,926 1,896,340 2,419,995 1,434,941 1,431,754 1,108,149 566,704 615,970 TOTAL 11,918,416 12,276,374 11,250,970 12,248,454 11,773,870 13,428,076 11,165,735 13,791,564 NEW GAS CONNECTIONS Residential Commercial Total Natural Gas Connections Mileage of Gas Mains Network Total to Date

993 42 21,091 3.08 315.11

653 23 586 10.55 325.66

613 33 646 4.52 311.79

445 27 471 3.67 315.46

ELECTRICITY Gross Generation Net Generation Total Sales

992,785,984 953,484,991 884,708,386

1,020,362,298 976,422,704 903,397,751

1,049,230,450 1,002,914,950 940,844,762

512,656,250 493,059,262 460,253,173

SALES (Kwh) Hotel Commercial Public Domestic Industrial Other TOTAL

135,218,337 201,144,245 128,035,974 293,670,902 56,196,149 70,442,779 884,708,386

139,203,255 200,943,277 132,924,296 294,772,352 56,176,355 79,378,216 903,397,751

143,266,336 209,993,849 137,886,895 300,018,732 60,056,364 89,622,586 940,844,762

137,083,318 200,588,317 140,338,380 299,885,687 61,634,100 96,445,017 935,974,819

40.41 38.36 111,743

44.16 39.71 n.a.

50.74 38.86 116,658

24.56 37.93 116,657

808,260 4,596 653,141 1,691,968

827,069 4,775 749,406 1,638,758

817,603 2,313 819,114 1,490,523

Capital Expenditure (million) Average Cost of Electricity No. of Customers

CONSUMPTION/SALES OF REFINED PRODUCTS (BBLS) Gasoline (Unleaded) 819,505 Kerosene 12,999 Diesel 640,488 Fuel Oil 1,338,711

SOURCE: Ministry of Finance, Investment, Telecommunications and Energy

Barbados Economic and Social Report 2008

IV. Sectoral Performance

G. COMMERCE AND CONSUMER AFFAIRS During 2008, the Department of Commerce and Consumer Affairs (DCCA) continued to advance and promote commerce and consumerism in Barbados.

LICENSING The commercial arm of the department continued to monitor trade through the licensing system. In the review period, a total of 14,241 import licences were processed

compared with 15,294 in 2007, a decrease by 1,053 or 7.4 per cent. Import licences issued for goods regionally decreased from 3,277 in 2007 to 3,086 in 2008, a decrease of 191 or 5.8 percent. There were 9,934 import licences issued for goods from extra-regional sources (excluding vehicles), 372 import licences or 3.61 per cent less than in the previous year. In addition, the DCCA issued 399 import licences for new vehicles, 802 import licences for used/reconditioned vehicles and nineteen (19) for temporary importation of vehicles. Only one (1) export licence was issued for exports during 2008.

TABLE 4.7-1 Import and Export Licences Processed in 2008 Month

CARICOM

Extra-regional (excluding vehicles)

New Vehicles

Used/Recon. Vehicles

Temporary Vehicle Imports

Export Licences Total

Jan

262

865

1243

Feb

253

918

1255

Mar

218

689

1006

Apr

210

852

1140

May

248

758

1090

Jun

278

828

1178

Jul

343

778

1255

Aug

221

726

1065

Sep

271

795

1151

Oct

174

885

1189

Nov

302

940

1353

Dec

306

900

1316

3,086

9934

399

802

14241

Total

SOURCE: Ministry of Commerce and Consumer Affairs

PRICE MONITORING Controlling the cost-of-living was identified as Government’s highest priority. During the review period, the DCCA continued to monitor the prices of selected basic food and non-food items. The food items component of the basket was expanded from twenty-nine (29) items to

almost ninety (90) items. The expansion was undertaken with the view to embrace a wider range of food items that are high in nutritional content and that are known to provide particular health benefits to consumers. The expansion also allowed domestic consumers to be able to compare the prices of a wider range of products, which may be close substitutes, thereby

Barbados Economic and Social Report 2008

assisting them in exercising greater prudence and thrift when shopping. Another important component of the DCCA’s 2008 price monitoring programme involved technical reviews of the price structure of several basic consumer products. The DCCA reviewed the VAT and import-duty structures of several products, including vegetables, with the view to determine the possibility of effecting a reduction in the price of the relevant items by amending the VAT and import-duty structures. The issue of mark-ups at the wholesale and retail level continued to attract the attention of the DCCA during 2008. Several discussions took place with the local distributive sector in this regard.

STANDARDS ENFORCEMENT Notable progress was made in the Consumer Affairs arm of the department during 2008, in relation to the enforcement of compulsory labelling standards in Barbados. During the year in review, the Trading Standards Inspectors carried out a total of 8,083 inspections at retail and wholesale outlets throughout the country.

INSPECTIONS Inspections were carried out with regards to food items, 178 labeling breaches occurred consisting of one hundred and two (102) with expired dates, and seventy-six (76) with no lot or production dates.

CONSUMER CLAIMS TRIBUNAL (CCT) During the year 2008, the CCT held fortynine (49) sittings and adjudicated in eightytwo (82) cases compared to the thirty-three (33) sittings held and the fifty-nine (59) adjudicated in 2007. The Tribunal handed down four (4) decisions, which resulted from a full hearing of cases and forty-five (45) consent orders bringing to forty-nine (49) the number of cases resolved during 2008. Of the forty-nine (49)

IV. Sectoral Performance

cases resolved, thirty-eight (38) involved cash rewards totalling $58,228 while the other eleven (11) were non-cash awards compared with cash awards totaling $53,195 for the thirty-six (36) cases and non-cash awards for the seven (7) cases resolved during 2007.

THE FAIR TRADING COMMISSION (FTC) CONSUMER PROTECTION Fairness in Contracts In 2008, the Commission reviewed fifteen (15) contracts for compliance with the Consumer Protection Act. The total amount of terms reviewed was 736 of which sixty (60) were found to be in breach of the Act. The suppliers were notified of the need to amend these terms. In addition, 354 consumers visited the Commission to discuss and seek guidance on a number of consumer issues and 2,940 persons telephoned the Commission for advice about their rights as consumers. Consumers also lodged forty-two (42) written complaints with the Commission.

PUBLIC CONSULTATIONS In order to promote transparency of its operations, the FTC issued public consultation papers on the review of the Standards of Service. This included the Barbados Light & Power Company Limited and Cable & Wireless (Barbados) Limited as well as Regulatory Accounting Guidelines for Cable & Wireless (Barbados) Limited.

FAIR COMPETITION From complaints received and on its own initiative, the Commission conducted inquiries into thirty-two (32) cases of alleged anticompetitive conduct during the year. The majority concerned allegations of abuse of dominance; namely price discrimination; refusal to supply; excessive pricing; and general unfair

Barbados Economic and Social Report 2008

practices. There was also one (1) case of price fixing. In the period under review, twenty-seven (27) of these matters were resolved while five (5) were ongoing. The Commission also conducted investigations into allegations of anticompetitive conduct in the areas of financial services; used car distribution; professional business services; and petroleum products distribution. The Commission’s work included monitoring commercial activities to identify possible anti-competitive conduct and opportunities for the promotion of Competition Law and Policy. It also developed the procedural framework for the enforcement of competition policy in Barbados and worked with regional agencies to develop competition policy in the region.

UTILITY REGULATION The Commission reviewed the price cap mechanism established for Cable & Wireless (Barbados) Limited (C&W) and determined that for the period August 2008 -- March 2012 there will be a rate freeze for Basket 1. This included domestic line access and residential installations for the first seventeen (17) months and thereafter C&W will be allowed to adjust rates in line with the Inflation factor as determined by the Retail Price Index up to a maximum of 4.5 per cent. For other domestic telecommunications services in Basket 2, the Commission determined that the productivity X-Factor should be raised to 7.1 per cent. The Commission also removed the price cap constraint from international telephone services and placed them in Basket 3 with other uncapped services. The company is not allowed to increase the prices of any of the uncapped services in Basket 3 beyond their levels as at October 2007.

ADVISORY AND EDUCATIONAL PROGRAMMES The Commission hosted its 4th Annual Lecture entitled “Harnessing Business and

IV. Sectoral Performance

Consumer Interests – Is Statute the only way?” and held workshops on fee setting by professional organisations, price cap and selected lists used by commercial banks. The Commission also launched three (3) regular columns in the newspaper, Dear FTC and Business Monday every two (2) weeks, “Let’s Get It Right Consumers” every week and a monthly column entitled “Conversations with the FTC”.

H. SMALL BUSINESS DEVELOPMENT OVERVIEW During 2008, the small business sector continued to play an important part in the economic and social development of Barbados. The Business Development Unit addressed the issue regarding the lack of appropriate research data on the sector and undertook a data-mining project that captured and updated information on the sector. Summary statistics from this project provided a base line statistic of 11,275 registered small businesses. During the review period, several government agencies including the Business Development Unit benefited from training on a Sector Manager Database provided by the Commonwealth Secretariat as part of technical assistance to the Government of Barbados. The database provided the framework to continuously generate information on the small business sector.

BUSINESS DEVELOPMENT UNIT Under the Small Business Development Act, Cap. 318C, approved small businesses were entitled to technical assistance as one of the benefits. For the fiscal year 2008/2009, there was a sharp reduction in technical assistance awarded to approved small businesses. The Ministry provided the following indirect financing in the administration of the technical assistance programme.

Barbados Economic and Social Report 2008

IV. Sectoral Performance

TABLE 4.7-2 Applications Received and Approved For Small Business Status 2000-2008

Year

Applications Received Approved

2000 2001 2002 2003 2004 2005 2006 2007 2008 TOTAL

24 46 25 17 13 7 5 9 12

9 9 12 3 14 6 5 1 2

137

$2.1 million in 2007 to $2.7 million in 2008. Job opportunities from these ventures also increased from seventy-two (72) in 2007 to ninety-nine (99) in the review period. Refinanced loans approved increased from $316,230 in 2007 to approximately $1.8 million in 2008, creating an additional twenty-two (22) job opportunities.

YOUTH ENTREPRENEURSHIP SCHEME (YES)

SOURCE: Ministry of Commerce and Consumer Affairs

TABLE 4.7-3

The Youth Entrepreneurship Scheme provided mix services to young entrepreneurs. Technical Assistance provided by YES over the review period amounted to $72,398. The following is a summary of technical assistance provided by YES over the review period. TABLE 4.7-4 Loans approved for Small Business Sector 2008

Applications for Small Business Status Sectors

April 2007- April 2008 Mar. 2008 March 2009

Fish Processing

50,000.00

n.a

Service

82,202.62

n.a

Service - Architectural 34,000.00

n.a

Light Manufacturing

n.a

Online Retail Total

50,000.00 n.a 216,202.62

46,832.00

$1,500.00

General services

$35,671.48

Medical services

$7,275.00

Light Manufacturing Retails Total

$25,571.00 $2,380.53 $72,398.01

SOURCE: Business Development Unit (BDU)

46,832.00

SOURCE: Business Development Unit (BDU)

FUND ACCESS During 2008, provisional information from Fund Access showed that loans approved from that organization, for new and expansion purposes, to the small business sector increased by approximately 23.0 per cent from

Construction

BARBADOS INVESTMENT AND DEVELOPMENT CORPORATION (BIDC) The BIDC continued work in the small business sector with specific focus being targeted on the promotion of innovation and business development. During 2008, small businesses took advantage of numerous services offered by the BIDC such as the mentorship programme, marketing assistance,

Barbados Economic and Social Report 2008

business plan development, financial projections, training, and focused seminars and workshops. These services were designed to guide small businesses in achieving structured growth as well as provide assistance in developing their corporate identity, logos, brochures, promotional literature and signage. During the review period, the Corporation assisted fifteen (15) new small businesses in start-up operations, an effort that saw the creation of thirty-eight (38) new jobs, including five (5) from expansions, which generated approximately BDS $1.5 million into investment in various areas of activity.

IV. Sectoral Performance

TABLE 4.7-5 BIDC Small Business Support TOTALS 2006-2007 2007-2008 Start-ups

Expansions

Investments

279,000

1,468,368

From start-ups

134,000

147,200

From expansions

145,000

1,321,168

New jobs

SOURCE: Small Business Development Unit

Barbados Economic and Social Report 2008

V. Social Sector Developments

V. SOCIAL SECTOR DEVELOPMENTS A. EDUCATION

AND

TRAINING

OVERVIEW The Ministry of Education and Human Resource Development (MEHRD) continued to place emphasis on the development of education through curriculum reform initiatives. These included: the Education Sector Enhancement Programme (ESEP); increased access to early childhood education; the National Reading Plan; as well as the domestic programme and other ongoing initiatives.

EDUCATION SECTOR ENHANCEMENT PROGRAMME (EDUTECH 2000) CIVIL WORKS Major civil works were completed at three (3) primary and three (3) secondary schools, while tender documents were approved for seven (7) primary schools.

TECHNOLOGICAL INFRASTRUCTURE

Curriculum reform was carried out with intervention strategies in fifteen (15) primary schools under the Affirmative Action Plan. The Education Evaluation Centre (EEC) continued its monitoring and evaluation of the education system and the reform initiative during 2008.

Commencement of the delivery and installation of Information and Communication Technologies to eleven (11) secondary schools and six (6) primary schools under the CDB10 equipment tender progressed. A new three (3) year school licensing agreement was established and the provision of antivirus software to programme schools continued.

EDUCATION BUDGET

HUMAN RESOURCE DEVELOPMENT

Approved expenditure of the Ministry of Education and Human Resource Development (MEHRD) for financial year 2008/2009 totalled $485.8 million, a 1.2 per cent increase over the $480.0 million approved for the financial year 2007/2008. Secondary education received $119.1 million, a decrease of 1.2 per cent compared with the $120.5 million received in 2007/2008. Tertiary Education was allocated $162.6 million, a 17.2 per cent increase over the previous year’s figure. Primary Education received $130.3 million compared with the $ 121.1 million received for the financial year 2007/2008. Special Services increased by $1.7 million from the $33.3 million allocated in 2007/2008, to $35.0 million in 2008/2009. The allocation of expenditure to Teacher Training for the financial year 2008/2009 was $3.9 million. Central Administration received $14.2 million, a decrease of $0.1 million over the 2007/2008 figure of $14.3 million.

The procurement of professional services such as Clerks of Works and Design and Supervision Consultants for the civil works component continued. Information consultants continued to provide advice to the Ministry on technology related matters.

CURRICULUM REFORM AND DEVELOPMENT The Curriculum and Assessment Unit during 2008, held workshops in the application of appropriate teaching methodologies to effectively utilise the revised curriculum for teachers across various subject areas. Seventeen (17) schools participated in the music programme coordinated by the MEHRD, and forty (40) students participated in the Cultural and Historical Exposure for Kids in Schools (CHEKS) in order to further promote indigenous culture within schools, especially in Tuk Band, Stilt Walking and the Landship.

Barbados Economic and Social Report 2008

V. Social Sector Developments

TEACHER TRAINING

utilised school improvement plans to chart their academic and non-academic progress.

Training was facilitated for two (2) teachers in the Treatment and Education of Autistic and related Communication -handicapped Children (TEACCH) Programme for autism and a workshop was held for teachers in Dyslexia Awareness. The annual Behaviour Management Workshop for thirty (30) primary school principals was facilitated. In addition, officers from the MEHRD were trained in Special Needs and other related courses.

EXAMINATION The Testing and Measurement Unit undertook various programmes to enhance the quality of output of both teachers and students. The Barbados Secondary School Entrance Examination (BSSEE) was administered to 3,693 students. The national mean for boys in English, increased marginally, while it decreased by 10.3 per cent for girls during 2008. Comparatively, Mathematics increased by 5.7 per cent for males and 5.6 per cent for females in 2008.

EARLY CHILDHOOD EDUCATION This programme sought to provide students with the basic knowledge and skills in literacy, numerical and oracy required for each child’s future development and educational needs. The revised curriculum emphasized problem solving and critical thinking skills. Continuous assessment would give each child an opportunity to demonstrate and provide knowledge acquired for crucial performance feedback to teachers, parents and students. Pedagogical support was provided for fifteen (15) primary schools. Approximately 85.0 per cent developed and

PRIMARY AND SECONDARY ENROLMENTS During 2007/2008, 27,094 students were enrolled at primary schools, 1.9 per cent below the 27,606 enrolled the previous year. Of this number, 13,700 were males and 13,394 were females. This continued the trend of more males being enrolled at the primary level than females. In this case, 306 more males than females were enrolled in the academic year 2007/2008, while at the secondary level, 21,382 were enrolled. Of this figure, 10,674 were males and 10,708 were females.

TABLE 5.1-1

Primary and Secondary Enrolments 2001/2002 - 2007/2008 Primary

Secondary

Male

Female

Total

Male

Female

Total

2001/02

14,942

14,500

29,442

10,755

10,681

21,436

2002/03

14,812

14,183

28,995

10,711

10,803

21,514

2003/04

14,388

13,936

28,324

10,932

10,945

21,877

2004/05

14,093

13,726

27,819

11,079

10,849

21,928

2005/06

14,303

13,694

27,997

10,682

10,860

21,542

2006/07

14,063

13,543

27,606

10,694

10,754

21,448

2007/08

13,700

13,394

27,094

10,674

10,708

21,382

SOURCE: Ministry of Education and Human Resource Development

Barbados Economic and Social Report 2008

TERTIARY ENROLMENT During the review period, the total number of Barbadian students enrolled in undergraduate, postgraduate and diploma courses increased by 656 or 12.2 per cent to 6,029. Of this figure, 1,975 were males and 4,054 females. Erdiston enlisted 301 students in 2007/2008, of which 217 were females and eighty-four (84) were males. In contrast, enrolment at the Samuel Jackman Prescod Polytechnic (SJPP) decreased by 276 students in 2007/2008, where there were 1,360 males compared with 1,512 females.

BARBADIAN STUDENTS ENROLLED AT THE UNIVERSITY OF THE WEST INDIES BY FACULTY 2007/2008

V. Social Sector Developments

EDUCATION PROJECT IMPLEMENTATION UNIT (EPIU) The EPIU has specific responsibility for the co-ordination and implementation of capital projects and programmes of the MEHRD. Procurement, accounting and administrative services to projects both foreign and locally funded are also operational responsibilities of the EPIU. Forty-eight (48) contracts valued at BDS$100.2 million were awarded for works at twenty-seven (27) primary schools, seventeen (17) secondary schools and four (4) private schools. Consultants also commenced work on the designs for sixteen (16) primary schools proposed to receive information technology infrastructure.

STUDENT SERVICES The faculty of Social Sciences enrolled a total of 3,181 Barbadian students, an increase of 13.6 per cent or 382 students. There were increases in both the enrolment of female and male students. Females enrolled were 2,248 or 70.7 per cent and males enrolled were 933 or 29.3 per cent of the overall total number of students enrolled. This faculty recorded 57.8 per cent of the overall total number of Barbadian students (5,500) enrolled at the University of the West Indies during the review period. Humanities enrolled a total of 1,158 students, an increase of 30.4 per cent, comprising of 861 females (74.4 per cent) and 297 males (25.6 per cent). This enrolment figure reflected 21.1 per cent of the overall total enrolment of students for the academic year. Science and Technology, recorded a total enrolment of 863 Barbadian students, School of Education (172), Law (77), and Medicine and Research (49). Of these totals, the females dominated the ratio of male to female enrolment except for Science and Technology where there were 487 males to 376 females enrolled. The School of Education enrolled 172 students with 136 females and thirty-six (36) males.

The Student Support Unit provided services to effectively address the behavioural, emotional, learning and physical needs of students at pre-primary, primary and secondary levels and to facilitate the involvement of parents as partners in the care, education and development of their children. During the academic year 2008/2009, 245 students were referred for issues pertaining to nonperformance in schools and behavioural problems. A total of 108 psychological assessments were done and 291 homes were visited to conduct social enquiries. Fifty-eight (58) students were placed in Special Education Programme Units.

BARBADOS COMMUNITY COLLEGE The Barbados Community College (BCC) recorded major accomplishments during the academic year. BCC collaborated with the Ministry of Health and the Pan American Health Organisation (PAHO) in developing strategies for the improvement of the delivery of health care in Barbados and the wider region.

1593

SJPP

126

1351

2332

2676

306

2370

163

2944

3448

4018

488

3530

Female Total

1643

1242

1305

184

1121

139

1518

2483

2566

322

2244

226

3161

3725

3871

506

3365

Male Female Total

2004/2005

1726

1429

1595

207

1388

Male

1110

2685

3187

362

2825

2836

4114

4782

569

4213

Female Total

2005/2006

SOURCE: Ministry of Education and Human Resource Development

1116

B.C.C

Erdiston

1342

182

1160

Male

Total

graduates

Post-

graduates

Under-

UWI

Institution

2003/2004

1524

1326

1638

163

1475

Male

138

1248

2539

3413

330

3083

188

2772

3865

5051

493

4558

Female Total

2006/2007

Tertiary Enrolments 2003/04 -- 2008/2009

TABLE 5.1-2

1632

1402

1783

146

1637

Male

192

1516

2886

3590

280

3310

241

3148

4288

5373

426

4947

Female Total

2007/2008

1360

1459

1975

186

1789

Male

217

1512

3001

4054

343

3711

Female

2008/2009

301

2872

4460

6029

529

5500

Total

Barbados Economic and Social Report 2008 V. Social Sector Developments

Barbados Economic and Social Report 2008

V. Social Sector Developments

TABLE 5.1-3 Barbadian Students Enrolled at UWI by Faculty 2007/08 -- 2008/09 Faculty

Male

Female

Total

Male

Female

Total

Social Sciences

813

1986

2799

933

2248

3181

Science & Technology

499

408

907

487

376

863

Medicine & Research

Law

246

642

888

297

861

1158

174

214

136

172

1637

3310

4947

1789

3711

5500

Humanities School of Education Total

SOURCE: Ministry of Education and Human Resource Development

The BCC participated in the activities of the Association of Caribbean Tertiary Institutions (ACTI), the Association of Caribbean Higher Education Administrators (ACHEA), the Caribbean Area Network for Quality in Tertiary Education (CANQTE), and other regional bodies whose purpose is to improve the delivery of tertiary education in the region. During the review period, the newly constructed temporary classrooms for the Nursing Department were put into operation and the Physics laboratory was completed.

SCHOLARSHIPS AND EXHIBITIONS Academic achievements for the year 2008 were fifteen (15) Barbados Scholarships, twenty-four (24) Exhibitions, two (2) Special Awards, eleven (11) National Development Scholarships, one (1) Barbados Award of Excellence and one (1) Commonwealth Scholarship to the UK.

BARBADOS YOUTH SERVICE (BYS) The total number of trainees registered was seventy-six (76), comprising fifty-three (53) males and twenty-three (23) females. Trainees were entered for the 2008 June CXC examinations in English Language, Office Procedures, Information Technology, Principles of Business, Social Studies and Technical Drawing. English Language received an 11.0 per cent pass rate, two (2) students passed CXC Information Technology, Office Administration and Social Studies received a 67.0 per cent pass rate, and Principles of Business received a 50.0 per cent pass rate. All trainees received HIV/AIDS education training and 50.0 per cent received training in First Aid from the Defence Force. Two (2) trainees are currently pursuing studies at the Barbados Vocational Training Board, two (2) at the Hospitality Institute, Barbados Community College, fourteen (14) at the Poverty Alleviation Unit and parent meetings were also conducted in 2008.

Barbados Economic and Social Report 2008

V. Social Sector Developments

YOUTH MAINSTREAMING PROGRAMME (FORMERLY PROJECT OASIS)

designed to meet specific needs of the existing and potential entrepreneurs.

The Youth Mainstreaming Programme succeeded the Project Oasis programme which was discontinued. During the review period, 101 persons completed courses at the SJPP in Electrical Installation (20), Computer Repairs (20), Auto Mechanics (17), Cookery (16), and Nail Care (28), while ten (10) persons completed the course in International Cookery at the BCC. There were also fifteen (15) persons passing courses in Bob Cat training; twenty (20) persons in Digital Media Film; twenty (20) in Computer Repairs; ten (10) in Landscaping; twenty (20) in Cake and Pastry; seventeen (17) in Auto-body Repair; twenty-five (25) in Basic Bartending and forty (40) persons in Nail Care. In addition, 130 persons pursued studies in Maths and English at the SJPP.

In addition, YES provided business counseling to 190 new clients, of whom seventy-nine (79) were in entrepreneurial development, thirty-three (33) in accounting services, and twenty-four (24) in marketing services. One (1) issue of the YES magazine was published and the seventh edition of the Business Directory was produced.

YOUTH ENTREPRENEURIAL SCHEME (YES)

NATIONAL SPORTS COUNCIL (NSC)

The Youth Entrepreneurial Scheme (YES) provided developmental support to young persons through the provision of financing and job creation to stimulate the micro and small business sector. YES also planned, organized, procured resources coordinated, and accounted for the business solutions which are

During the review period the NSC undertook various capital projects. The NSC financially assisted the communities with the building and refurbishment of pavilions at Boscobelle, St. Peter; Silver Sands, Christ Church; St. Martins, St. Philip; and the

Other major accomplishments of YES were the assistance in the creation of nineteen (19) jobs, the hosting of the YES National Trade Fair for twenty-seven (27) businesses, assisting eleven (11) businesses in participating in the Caribbean Gift and Craft Show, along with financial and technical assistance in the creation of fifteen (15) new businesses.

TABLE 5.1-4 Barbados Vocational Training Board Enrolment and Output of Skilled Manpower 2008/09 Enrolment Skills Agricultural Apparel / Sewn Product Art / Craft Automotive Trade Beauty and Care Services Commercial

Male

Female

Output Total

Male

Female 0

Total 0

133

144

142

152

Hospitality

125

148

107

Information Technology

Machine Appliance Other All Skills Programme

798

132

930

778

120

898

1014

498

1512

981

407

1388

SOURCE: Barbados Vocational Training Board

Barbados Economic and Social Report 2008

V. Social Sector Developments

Glebe, St. George. Tremendous progress was made in the coaching programmes. The NSC development squad gained twelve (12) of the fifteen (15) places on the squad that represented Barbados in the regional Under15 Cricket Competition and won it. The NSC sought not only to improve the sporting development of the youth, but to improve their social, team building and educational skills. The NSC’s summer camp for 2008 enrolled 1,366 students who engaged in non-sporting activities such as the Island Safari Tour, the Atlantis Submarine, visits to Harrison’s Cave and a cruise on the M.V. Harbour Master.

BARBADOS VOCATIONAL TRAINING BOARD

Figure 14

Source: Ministry of Education and Human Resource Development

Males continued to dominate enrolment in the more traditional male oriented skilltraining programmes. These included Automotive Trade and Machine Appliance and other categories, which accounted for 62.1 per cent of the total number of persons in this category. However, the females outnumbered the males in the areas of Art and Craft, Hospitality, Information Technology, Apparel and Sewn Product, Beauty and Care Services and Agriculture. The output to enrolment ratio in the skills programmes accounted for approximately 91.8 per cent.

STUDENT REVOLVING LOAN SCHEME There were 291 loan applications in 2007/ 2008, a decrease of 117 compared with the 2006/ 2007 total of 408. The numbers of approved

and revised loans were 271 and 291 respectively. Of the total number of loan applications, 93.0 per cent were approved in comparison with 64.0 per cent in 2006/2007, an increase of 29.0 per cent.

B. POPULATION

The resident population was estimated at 275.3 thousand persons at December 31, 2008. This represented an increase of 600 persons, when compared with 274.7 thousand in the previous year. There were 133.1 thousand males compared with 132.3 thousand in 2007. Females accounted for 142.3 thousand, or 51.7 per cent of the resident population, compared with 142.0 thousand for the corresponding period.

TABLE 5.1-5 Student Revolving Loan Scheme Year

Loan Applications

Loans Revised

Loans Approved

2005/2006

391

264

248

2006/2007

408

274

261

2007/2008

291

271

Source: Ministry of Education and Human Resource Development

Barbados Economic and Social Report 2008

V. Social Sector Developments

difference between births and deaths), was 1,071 persons, compared with 1,324 for 2007.

The total adult population was recorded at 212.7 thousand persons, comprising of 112.1 thousand females and 107.6 thousand males at the end of 2008. There were 109.5 thousand females and 102.4 thousand males in the adult population in 2007.

In 2008, the death rate increased to record 9.0 per thousand of the population compared with 8.1 per thousand in 2007. There were 2,476 deaths during 2008, representing an increase of 263 when 2,213 deaths were recorded in 2007. Female deaths accounted for 1,255 or 50.7 per cent of total deaths, while there were 1,221 male deaths.

The birth rate of 2008 remained at 12.9 per thousand for the second consecutive year. There were 3,547 live births in 2008 compared with 3,537 in the previous year. Male births were 1,817 compared with 1,853 in 2007, while there were 1,730 female births compared with 1,686 in 2007.

Infant mortality rose in 2008 and was recorded at a rate of 18.3 per thousand births compared with 13.0 per thousand in 2007. There were sixty-five (65) infant deaths nineteen (19) more than the previous year, this comprised thirty-six (36) males and twenty-nine (29) females.

The rate of population growth decreased to 0.2 per cent in 2008 from 0.3 per cent in 2007. The rate of natural increase fell from 4.8 per thousand in 2007 to 3.9 per thousand in 2008. The natural increase in population, (the

TABLE 5.2-1 Births, Deaths and Infant Mortality 1992 -- 2008

Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Live No. of Births 4139 3781 3547 3473 3519 3784 3612 3882 3762 4051 3812 3748 3473 3508 3414 3537 3547

No. of Deaths

Natural Increase

Infant Mortality

2361 2399 2291 2481 2400 2297 2471 2428 2430 2407 2295 2274 2424 2162 2317 2213 2476

1778 1382 1256 992 1119 1487 1141 1454 1332 1644 1517 1474 1049 1346 1097 1324 1071

38 38 30 46 50 50 28 39 63 66 55 37 64 29 38 46 65

SOURCE: Barbados Statistical Service Figures are collected as registration occurs

Â&#x201E;Â&#x201E;Â&#x201E; 83

Barbados Economic and Social Report 2008

Figure 15

C. HEALTH OVERVIEW During 2008, the Ministry of Health pursued a number of critical reform initiatives contained in the Barbados National Strategic Plan for Health with technical assistance provided by the Pan American Health Organisation (PAHO) and the 9th European Development Fund. These initiatives addressed the management of chronic non-communicable diseases: family health services and strengthening health systems. Additionally, support was secured through a second World Bank Project to strengthen the HIV/AIDS Programme. Barbados continued to demonstrate good indicators for: infant mortality; maternal mortality and life expectancy at birth; access to clean drinking water; immunization coverage; and maintaining the low incidence of communicable diseases. For more than a decade, the most significant epidemiological trend in Barbados and in the rest of the Caribbean was the increasing prevalence of overweight, obesity and chronic non-communicable diseases (CNCDs). In light of the burden of CNCDs, the Ministry through the Chronic Disease Commission set the stage for combating CNCDs

V. Social Sector Developments

Figure 16

and implementing the provisions of the Port of Spain Declaration.

HEALTH BUDGET The allocation to the Ministry of Health for the fiscal year 2008/2009 was $471.2 million as compared with $369.8 million for 2007/2008. The largest share of this allocation, 40.0 per cent ($192.0 million) went to Hospital Services, which included emergency, acute and secondary care as well as mental health services. The Care of the Elderly programme which includes the Geriatric and District Hospitals and the Alternative Care of the Elderly received 8.0 per cent. The Pharmaceutical Programme, which provides formulary drugs to the entire population, received $43.0 million or 9.0 per cent of the total budget. Primary Health Care Services and Environmental Health received 6.1 per cent and 18.0 per cent, respectively of the allocation; while HIV/AIDS received 3.3 per cent. The ministerial reshuffle in 2008 resulted in the reassignment of the National Insurance and Social Security Scheme, the Barbados Water Authority and the Integrated Solid Waste Management Project to other ministries. In spite of this change, their allocation remained under the Ministry of Health Head of Expenditure. Between 2004 and 2008, Government Expenditure on health services was on average 12.9 per cent of total Government expenditure, or about 4.4 per cent of GDP.

Barbados Economic and Social Report 2008

V. Social Sector Developments

Figure 17

Health Expenditure for the Fiscal Year 2008/2009

SOURCE: Ministry of Health, Planning Unit

HEALTH SYSTEMS DEVELOPMENT In 2008, a total of EURO3.7 million (BDS$9.7 million) was disbursed from the 9th EDF programme, of which EURO 3.0 million was in direct sector budget support while the remainder was in technical assistance. The technical assistance component of the programme came to an end in November 2008. The following are the highlights of the execution of the EDF Programme in 2008:

•

Improving the Management of CNCDs

Technical assistance was provided to the Chronic Disease Commission to draft a Strategic Plan for CNCDs in October 2008. A special meeting of the Commission was called to ratify the draft Plan. The contract established in 2006 between the Ministry and the Heart and Stroke Foundation of Barbados (HSFB) for the provision of cardiac rehabilitation services continued to meet the needs of poor Barbadians for this service. During 2008, a total of eighty-four (84) clients, referred by the Cardiovascular Services

Department of the QEH, received cardiac rehabilitation at the HSFB.

•

Training and Other Health Systems Reform

During 2008, the Ministry contracted the Faculty of Medical Sciences of the UWI to provide training at the post graduate level in health service management. Twenty-five (25) managers completed the first post graduate diploma in health services management, while four (4) Ministry of Health personnel were enrolled in the first Masters in Health Services Management.

•

Strengthening Family Health Services

In 2008, approval was given for the acquisition of approximately $0.9 million in rehabilitation equipment to upgrade the scale as well as the scope of physiotherapy, occupational therapy and podiatry in the polyclinics and at the Geriatric and District Hospitals.

Barbados Economic and Social Report 2008

V. Social Sector Developments

QEH INFORMATION SYSTEM The Patient Registration and Immunisation software modules were rolled out to three (3) of the remaining four (4) polyclinics during 2008. Seventeen (17) Medical Records Clerks and twenty-six (26) Health Sisters in the polyclinics were trained in the use of software. It was anticipated that the electronic patient registration and immunisation data will enhance decision making in the polyclinics as well as at the national level.

Given the many social and economic factors that impacted on the operations of the BDS, the Ministry reviewed proposals to reposition BDS to become a dynamic institution, capable of responding in a timely manner with pragmatic solutions while ensuring equity and continued access to high quality drugs for Barbadians. These proposals included: strengthening the information systems; conducting drug utilisation reviews; introduction of pharmacovigilance to ensure the safety of drugs approved to be on the market; and restructuring the operations of the BDS.

BARBADOS DRUG SERVICE In 2008, the Barbados Drug Service (BDS) received requests by pharmaceutical distributors for higher prices as a result of increased costs. The BDS records showed that approximately two (2) prescriptions were filled in the private sector for every one (1) filled in public. Furthermore, overall expenditure, which was escalating annually, increased by approximately $4.0 million between 2006/2007 and 2007/2008.

Expenditure on drugs in the public sector was $8.0 million in 2008, which was a decrease of $2.4 million when compared with the previous year. Expenditure on the Special Benefit Service also decreased from $36.5 million in 2007 to $27.4 million in 2008. Total expenditure fell significantly by $11.5 million in 2008 down from $46.9 million in 2007. There were 547,973 prescriptions in 2008, a decrease of 114,654 prescriptions which caused the fall in expenditure. The dollar value per prescription was fourteen dollars and sixty-six cents ($14.66).

TABLE 5.3-1 Drug Service Expenditure for the Fiscal Year 2006/07 - 2008/09 Year

Expenditure on

Expenditure on the Total Expenditure

Drugs in the Public the Special Benefit Sector

on Drugs BDS$

2006/2007

11,403,711

31,587,931

42,991,642

2007/2008

10,439,220

36,535,775

46,974,994

8,032,625

27,437,194

35,470,819

2008/2009P

SOURCE: Barbados Drug Service

Service

Barbados Economic and Social Report 2008

V. Social Sector Developments

TABLE 5.3-2 Number of Prescriptions filled in the Public Sector and their Corresponding $ Value 2006/2007 to 2008/2009 Year

No. Rx’s

Expenditure $

2006/2007

660,574

11,403,711

17.26

2007/2008

662,627

10,439,220

15.75

2008/2009P

547,973

8,032,625

14.66

SOURCE: Barbados Drug Service

QUEEN ELIZABETH HOSPITAL The QEH continued to be the leading acute-care service provider in the country with a bed complement of 552. The leading inpatient services by admissions were: Gynaecology, Medicine, Surgery and Paediatrics with 22,602 admissions in 2007/ 2008, higher than the 2006/2007 figure of 21,974. The average length-of-stay declined by 0.5 days during 2007/2008. Although the number of new out-patient cases seen from April 2007 to March 2008 was 13,226, the total number of out-patient visits declined by 4,210. Accident and Emergency attendances also declined during this period by 1,205.

GOVERNANCE Under governance, emphasis was placed on improving the management of the hospital through: •

development of appropriate organisational structures for key departments

•

development of a comprehensive security system

•

comprehensive Redevelopment Plan developed for the QEH

•

Clinical Strategy Redevelopment

During 2008, a Clinical Strategy Redevelopment Programme was designed to

allow for clinical services and departments to be grouped into project teams and led by Clinical Directors. The main focus was on sharing objectives; defining operational plans and goals; risk management and improvement in the provision of services. Clinical operations were categorized as follows: •

Medicine and Emergency Services

•

Women and Children

•

Surgery and Anaesthesia

•

Diagnostics and Therapies

COMPREHENSIVE SECURITY SYSTEM The Hospital security programme was launched in March 2008 and the access and control system was fully activated. Outstanding operational initiatives included long-term security requirements and the implementation of a QEH Security Guard Force.

RECAPITALISATION PROGRAMME In 2008, the Cabinet approved $60.0 million for the QEH recapitalisation project. These funds were earmarked to replace ageing and obsolete medical equipment; to procure other equipment essential to the efficient delivery of patient care; and to undertake the refurbishing of critical areas of the plant in order to re-establish acceptable standards of clinical and support services.

Barbados Economic and Social Report 2008

ACCIDENT AND EMERGENCY SERVICES

ENVIRONMENTAL HEALTH SERVICES

The Accident and Emergency (A&E) Department treated approximately 42,000 patients during 2008. The QEH Board undertook a major upgrade of the A&E Department as part of the recapitalisation programme. It also implemented an A&E Improvement Project, which garnered additional nursing staff; provided training in triaging; up-graded the centralised airconditioning system; and provided equipment for “point of contact testing”. Additionally, the success of the postgraduate training programme in Emergency Medicine translated into better and more advanced care of patients.

In 2008, under the Food and Safety Programme, 600 food handlers were trained in the safe handling and preparation of food and fourteen (14) Environmental Health Officers were trained in Hazard Analysis Critical Control Point (H.A.C.C.P) auditing.

HIV/AIDS A new National Strategic Plan, for HIV prevention and control for the period 20082013 was approved in Parliament in May 2008. The major focus of this new Strategic Plan was the prevention of HIV and sexually transmitted infections (STIs). During 2008, discussions on a second HIV/AIDS World Bank Project was concluded. The Project supported the implementation of the National Strategic Plan and the approved behavioural change communication strategy. The strategy strived to achieve a better balance between prevention and treatment to: •

•

V. Social Sector Developments

Increase adoption of safe behaviours, in particular amongst key populations at higher risk; Increase access to prevention, treatment and social care, in particular for key populations at higher risks;

•

Strengthen organizational and institutional structures that govern the National AIDS Programme (NAP); and

•

Increase the use of quality data for problem identification, strategy definition and measuring results.

During the review period, Barbados participated in a research project to establish the prevalence of Salmonella and Campylobacter in the poultry industry. The first phase of the project dealt with retailed/dressed poultry ready to be purchased by the consumers. The second phase targeted the productive sector.

D. SOCIAL SERVICES This chapter continues coverage on the activities of the following social sector agencies:

•

The National Assistance Board

•

The Child Care Board

•

The National Disabilities Unit

•

The Bureau of Gender Affairs

•

The Urban Development Commission

•

The Welfare Department

CHILD CARE BOARD The Child Care Board is a Statutory Corporation established by the Child Care Board Act in 1969 to provide services for children in need of care and protection. In 1981, the aforementioned Act was amended and replaced by the Child Care Board Act 1981 (proclaimed in 1983) to facilitate the provision of a wider scope of services.

Barbados Economic and Social Report 2008

The Board offers services in the following areas:

•

Residential Care

•

Day Care (Government)

•

Private Day Care

•

Foster Care and Adoption

•

Child Abuse/Care and Protection

•

Psychological assessments and evaluations

•

Early Intervention, Prevention and Stimulation Programmes for Children with Disabilities

•

Professional Training and Development

•

Voluntary/Sponsorship

V. Social Sector Developments

in the community for re-integration with family members.

OCCUPANCY There was an average of 105 children in the Board’s nine (9) Centres during the period under review. Of these, fifty-seven (57) were males and forty-eight (48) were females. Occupancy in the month of February was the highest, with 140 and September, the lowest with ninety-five (95) children. Thirty (30) children in Residential Care were assessed with special needs including psychiatric needs. The Table 5.4-1 below represents the monthly data relating to the monthly occupancy of the residences:

•. Public Education-Community Outreach RESIDENTIAL CARE The Board operated the following nine (9) Childrens’ Homes:

TABLE 5.4-1 Monthly Occupancy

Month

Males

Females

Total

January

February

140

•

Farrs, St. Peter

March

105

•

Haynesville, St. James

April

105

•

Sayers Court, Christ Church

May

111

•

Campwood, St. Philip

June

July

107

•

Sterling, St. Philip and

August

•

Four (4) Transitional Cottages (Nightengale Complex) one (1) of which is currently under reconstruction

September

October

105

November

105

At December 31, 2008, in addition to ninety-nine (99) children in Residential Care there were nine (9) children who were monitored

December

Average

105

Barbados Economic and Social Report 2008

MONTHLY OCCUPANCY 2008

ADMISSIONS

Four hundred and thirty (430) children were admitted during this period and 326 were discharged.

AND

DISCHARGES

Fifty-five (55) children were assessed as being in need of care and protection and were admitted into care during the year. Thirty-eight (38) children were discharged from Residential Care for the period under review.

HOSPITALIZATION Two (2) children with special needs had multiple admissions to the Queen Elizabeth Hospital during the year.

DEATH One thirteen (13) year old mentally challenged male died during the period under review.

DAY CARE -- GOVERNMENT ENROLLMENT

AND

CAPACITY

The total capacity at the fifteen (15) day nurseries was 1,050 children. At December 31, 2008, there were 940 children enrolled in Government Day Care.

V. Social Sector Developments

AND

DISCHARGES

WAIVER OF FEES & SOCIAL WORK INTERVENTION Sixteen (16) children received a waiver of fees after their circumstances were assessed and they were found to be in need of such services. Waivers of fees were reviewed every six (6) months. Additionally, there was social work intervention for issues such as the early detection of children with disabilities, behavioural problems, and custody/access arrangements.

EXTRA CURRICULAR ACTIVITIES There were two (2) extra-curricular activities during the year: The Easter Bonnet Parade at Eden Lodge Nursery and the Mini Carnival at Haynesville Day Nursery.

READING PROGRAMME In conjunction with the National Library Service, a Reading Programme was conducted at Colleton and Grazettes Day Nurseries during the months of February and August.

ATTENDANCE

WAITING LISTS

During the period under review, the Board provided Day Care to an average of 958 children between the ages of three (3) months and four (4) years. The lowest attendance was recorded during the week ending August 31, 2008 with a total of 878 children. The month of May 2008, recorded the highest attendance, 1,009 children.

The waiting lists for the placement/ admission of children into the fifteen (15) day nurseries reached a total of 3,048 children. There were high requests for access to day nurseries within close proximity to Bridgetown: John Beckles (638); Joan Arundell (250); Nightengale (154); and London Bourne (173).

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V. Social Sector Developments

TABLE 5.4-2 Government Day Nurseries 2008 No. of Children Capacity

Name of Centre Toddler/ Preschoolers Bagatelle Colleton Delores “Ma” Worrell Eden Lodge Ellerton Farm Grazettes Haynesville Joan Arundell John Beckles London Bourne Madame Ifill Marion Hall Nightengale Sayers Court Total

Babies

24 40 32 72 30 40 36 36 44 80 36 48 72 48 32

30 30 27 30 17 18 24 24 18 30 18 18 30 36 30

54 70 59 102 47 58 60 60 62 110 54 66 102 84 62

670

380

1050

PRIVATE DAY CARE

Waiting List

149 187 217 261 82 126 162 104 250 638 173 291 167 154 87 3048

by the Board. This centre was still in operation at the end of the year.

CENTRES IN OPERATION The Child Care Board has responsibility for the registration of private day care centres. During 2008, the Board recorded 148 centres were in operation with a total enrolment in excess of 5,400 children.

LICENCES ISSUED Ninety-eight (98) centres were issued licences to operate in 2008. Eight (8) centres were also granted conditional licences, five (5) were denied licences, one (1) centre was closed and one (1) centre was instructed to be closed

ENQUIRIES, NEW APPLICATIONS AND CLOSURES The Board received eighty-six (86) enquiries about establishing day care centres in 2008, seven (7) new completed applications for registration and one (1) centre was closed.

CENTRES WITH TOWN PLANNING ISSUES For the year under review, there were thirty-one (31) centres with outstanding Town Planning issues.

Barbados Economic and Social Report 2008

V. Social Sector Developments

TABLE 5.4-3 Centres with Town Planning Issues No.

Name of Centre

Location

Blossoms Pre-school

Prior Park, St. James

Bright Stars

Fitts Village, St. James

Betty Harvey

Hill Road, Bank Hall

Care and Comfort

Groves Plantation, St. Philip

De Pearl

Codrington Hill, St. Michael

Flowers of God’s Garden

Perogative, St. Judes, St. George

Grace Hill

Spooners Hill, St. Michael

Haven (Rock Dundo)

Rock Dundo Park, St. Michael

Hillview

Grandview, St. Thomas

Jonnies

Enterprise, Christ Church

Kiddies Haven

Durant’s Park, Christ Church

Little Stars

Welches, St. Michael

Little Steps

Woodbourne, St. Philip

Little by Little (St. Philip)

Marchfield, St. Philip

Little People

9th Ave Belleville, St. Michael

Little Hearts

Simmons Land, Christ Church

Love for Learning Institute

Lodge Hill, St. Michael

Miracles

#16, 8th Ave., Belleville, St. Michael

Our Sons and Daughters

Valley View, St. George

Rising Stars

Salter’s, St. George

Sanjeri

Welches, St. Michael

Smart Start

Whitehall Main Road, St. Michael

Smiling Faces

Queen Victoria Road, Bank Hall, St. Michael

Soft Touch

Regency Park, Christ Church

Stepping Stones

Welches, Christ Church

Tasha’s

Eastlyn, St. George

Tender Treasures

#1 Reece Road, St. Michael

Toddlers’ Time

Fields Road, Bank Hall, St. Michael

Little Tots

Grazettes New Road, St. Michael

Wee B Kids

Maycocks, St. Lucy

Zoe’s

Long Gap, Grazettes, St. Michael

Barbados Economic and Social Report 2008

V. Social Sector Developments

FOSTER CARE & ADOPTION

ADOPTION ORDERS No Adoption Orders were granted.

ENQUIRIES

ASSESSMENTS

The Board received 124 enquiries about matters pertaining to Foster Care and Adoption. Of these, 104 were in relation to adoption and twenty (20) pertained to Foster Care, of which one (1) was from an adoption agency for a Home Study report.

Fifteen (15) assessments were approved by the Board. Of these, ten (10) were for Adoption and five (5) were for Foster Care.

INTAKE AND CHILD ABUSE

PLACEMENTS

ENQUIRIES

Five (5) children were placed with prospective adoptive parents and two (2) children were introduced to prospective foster parents.

The Board through its Intake System processed 1,790 enquiries, referrals and complaints. Of this total, 1,071 were non-child abuse matters which impacted on 938 children. There was a total of 1,962 children affected.

STATUTORY SUPERVISION

The month of April recorded the most referrals and the month of October recorded the largest number of incidences of abuse with a total of 101 cases. These referrals were actioned through counselling and support by child care officers, psychological assessments, counselling by the Board’s psychologist and referrals to other social service agencies.

For the period under review, there were twenty-three (23) children (12 girls and 11 boys) in long-term Foster Care with eighteen (18) families. Officers assigned to the Adoption and Foster Care team carried out 794 monitoring and supervisory visits with these children as stipulated by the Legislation.

TABLE 5.4-4 Total Number of Child Abuse Reports for 2008 Month

Physical Abuse

Sexual Abuse

Neglect

Emotional

Abandonment

Total

January

February

March

April

May

June

137

July

103

August September

October

111

November

December

190

241

159

170

329

585

731

1071

Total

No. of Referrals No. of Children 93

Barbados Economic and Social Report 2008

V. Social Sector Developments

TABLE 5.4-5 New Cases of Child Abuse for 2008 Month

Physical Abuse

Sexual Abuse

Neglect

Emotional

Abandonment

Total

January

February

March

April

May

June

July

August

September

October

November

December

130

161

114

124

190

323

474

659

Total

No. of Referrals No. of Children

PREVENTION INITIATIVES The Board continued its Child Abuse Awareness and Prevention Programme within the primary schools, designed to keep children safe from abuse and equip them with necessary information that would assist them should they become victims of abuse. Five hundred and twenty-three (523) children attending seven (7) primary schools participated in the programme during the year, of which 265 were boys and 258 were girls. To date, over an eight-year period, 3,251 children from sixty-four (64) schools participated in this programme. The professional staff is actively engaged in the Board’s Educational and Community Outreach Programme. Thirty-eight (38) requests for speakers and twenty-seven (27) requests for information were received and actioned. These activities were aimed at prevention, early intervention and treatment

of child abuse and child care related issues. Deviant and anti-social behaviour, self-esteem and communication in family relationships, school support services and child and sexual abuse were some of the topics discussed. The public was also informed of the role of the Child Care Board.

COURT REQUESTS The Board received seventy-two (72) requests from the courts asking mainly for the circumstances of children to be investigated and reports forwarded to the court on said investigations.

COURT REFERRALS Eighty-three (83) allegations of sexual abuse and two (2) allegations of Physical Abuse were reported to the Royal Barbados Police Force, who responded to seventy-seven (77) of these referrals.

Barbados Economic and Social Report 2008

COURT APPEARANCES Child Care Officers made seventy-three (73) court appearances on matters relating to child abuse, custody and access and other child-related matters. Four (4) of these appearances related to sexual abuse cases, seventeen (17) to custody and access, thirtyfive (35) to care and control, two (2) related to maintenance, one (1) to neglect, two (2) pertained to emotional abuse and twelve (12) were deemed miscellaneous.

NATIONAL ASSISTANCE BOARD The National Assistance Board continued to provide social care for the Board’s clientele through the following programmes:

Assistance-in-Kind

Home Care

Recreational Activities

Residential Care

Bereavement Support Services

Vulnerable Persons Committee

ASSISTANCE-IN-KIND During 2008, the Board expended $75,530 to provide basic household furnishings to 163 persons. The Board continued to prioritize the needs of their clientele based upon the Board’s financial capacity.

HOME CARE PROGRAMME One thousand and ninety (1,090) persons were assisted with their activities of daily living through the home care programme. Six hundred and eighty-seven (687) were females and 404 males. In addition, 512 referrals were received although all requests could not be honoured. The Board was therefore concerned about the increased workload and the lack of transportation in order to provide easy access

V. Social Sector Developments

to the rural areas as well as safe travel for the home care workers.

RECREATIONAL PROGRAMME This programme operated out of thirteen (13) centres across the island and provided a holistic active ageing environment for senior citizens. Approximately 500 persons attended the weekly sessions and benefited through interactions at social events.

RESIDENTIAL FACILITIES JORRIS DUNNAH CITIZENS’ HOME

SENIOR

The Board was in the process of undertaking major renovations during the year, moreover alternative accommodation for the twenty-four (24) residents was still being sought. CLYDE GOLLOP NIGHT SHELTER The Clyde Gollop Night Shelter’s programme was expanded to include a rehabilitative component for the thirty-two (32) persons and other homeless men that occasionally occupy the Shelter. It was envisioned that the bed capacity needed to be increased and the opening hours extended. VAUXHALL SENIOR CITIZENS’ VILLAGE This facility was refurbished and now accommodates forty-seven (47) persons, including seventeen (17) former Arch Cot Residents. BEREAVEMENT SUPPORT SERVICES In 2008, Cell/Support groups were established across the island through the training in “Caring for the Bereaved”. There were two (2) satellite programmes located at the Queen Elizabeth Hospital and the Ministry of Education Student Services.

Barbados Economic and Social Report 2008

V. Social Sector Developments

The statistical data on counselling to the bereaved is provided from the Board’s headquarters:TABLE 5.4-6

Amongst the functions of the Bureau was the facilitation of gender mainstreaming of national development policies and programmes, so that equality and equity between men and women can be achieved.

Counselling Provided to the Bereaved Accidental Deaths

Sudden Deaths

Cancer Deaths

Heart Attacks

Fire Victims

Workshops Conducted

GENDER MAINSTREAMING

Cell Groups Trained

Parents of Still Births

Other Grief Issues

Suicides

Terminal Illness

VULNERABLE PERSONS COMMITTEE The Ministry of Social Care, Constituency Empowerment, Urban and Rural Development mandated a multidisciplinary committee to coordinate and collect data on persons deemed vulnerable, who in cases of disaster would need assistance for safe shelter. The role of the committee included public education through site visits to vulnerable areas, nursing and senior citizens homes and District Emergency Organizations.

THE BUREAU OF GENDER AFFAIRS INTRODUCTION The mission of the Bureau ensured the integration of gender and development into all areas of national development, plans and policies, so that women and men can benefit equally from existing opportunities.

The Bureau also facilitated the preparation and dissemination of information on gender and development issues and the provision of reference services through a Documentation Resource Centre.

The Bureau remained committed to its strategy of mainstreaming gender in 2008. In accordance with this strategy, the Bureau sought to fulfill its mandate to sensitize all public officers to gender. As a result, 150 public officers benefited from a number of two-day workshops and were exposed to: (a) A greater understanding of the difference between sex and gender. (b) How gender is constructed and how it determines gender identity, gender roles and relations. (c) Discussion on gender roles and relations and an examination of how these determine and influence how men and women participate in and benefit from development policies, plans and projects. (d) An examination and identification of strategies for addressing gender issues and for incorporating gender into national sectoral plans and projects. It was expected that as a result of this training, officers will be able to incorporate gender analysis in the development of their programmes.

Barbados Economic and Social Report 2008

GENDER AND HIV/AIDS The Bureau sought to contribute to the National HIV/AIDS programme in the area of education and prevention and control, through the staging of its Gender Dimension Workshops. These workshops sought to increase awareness of the gender dimensions of HIV/AIDS and gender among the public. In relation to its Gender Dimension Workshops, 2008 was marked by an expansion of the Bureau’s community approach started in 2007. To this end, workshops were held with members of The Power in the Blood Church, members of the Holders Hill New Testament Church, The Mount Zion Apostolic Ministries and the United Holy Church of America. The Bureau sought to address the issue of HIV/AIDS among young people through a two-day workshop held in August. The workshop was coordinated by three (3) students who were interns at the Bureau and attracted approximately fifty-five (55) participants.

DOMESTIC VIOLENCE The Bureau of Gender Affairs in collaboration with its strategic partners redoubled its efforts at eradicating domestic violence and keeping the public sensitized and mobilized on the issue.

DATA COLLECTION PROTOCOL The adoption of the Domestic Violence Protection Protocol by its partners as the official instrument for the collection of data on domestic violence was critical to the Bureau’s efforts in this area. A number of strategic partners committed themselves to participating in the pilot project. In May 2008, a meeting was held with stakeholders to inform them of Cabinet’s decision to establish operational procedures for the pilot programme. The meeting also sought to ascertain what were the challenges in implementing the Domestic Violence Data Collection form.

V. Social Sector Developments

In August, a training seminar was held for persons integral to the implementation of the Domestic Violence System pilot project. In terms of its sensitization programme, the Bureau enjoyed some success with its Town Hall approach on this issue. On November 25, the Bureau held a symposium on Domestic Violence at the Bagnall Point Gallery, Pelican Craft Village, Harbour Road. This event attracted over 100 participants and marked the beginning of the sixteen (16) days of activism, which climaxed on 10th December, 2008. In terms of research, the Bureau of Gender Affairs commissioned CADRES to undertake a survey on the prevalence and demographic characteristics of domestic violence in Barbados.

MASCULINITY During the year, the Bureau continued its efforts at keeping male issues in the public domain. In commemoration of Father’s Day, the Bureau hosted a Fathers’ Exposition at Jubilee Gardens. Following this activity there was a panel discussion and a film show. In an effort to highlight fatherhood in a positive light, the film show “The Pursuit of Happyness” was taken to the community.

HUMAN TRAFFICKING The Bureau continued its efforts to accelerate the completion of the National Protocol on Human Trafficking. With this objective in mind, a workshop designed to examine the revised draft was held in June, 2008.

URBAN DEVELOPMENT COMMISSION TRANSFER OF TITLE PROGRAMME During the period January to December 2008, the Urban Development Commission continued to identify tenantries throughout urban Barbados to allow for the legal transfer of title to Barbadians.

Barbados Economic and Social Report 2008

V. Social Sector Developments

PROGRAMME EXPENDITURE

subsidies totaling $2.6 million toward the purchase of their lots as distributed in the following way.

Government contributed to the empowerment of 132 tenants by paying

TABLE 5.4-7

Monthly Subsidy Paid Monthly January February March April May June September October to December

Number of Subsidies Paid

Amount Paid

5 13 2 33 29 24 26 No subsidies were paid during this period

Total

132

During the reporting period, the following expenditure was spent on land surveying services. Land surveying services were provided in an effort to reduce the time spent preparing lots for the transfer of title. In this regard, 186 tenantry lots were surveyed which

$ 75,358.70 241,381.04 13,414.50 1,356,599.89 319,132.18 223,509.97 341,526.19 2,570,922.47

comprised of nine (9) tenantries and five (5) areas of land. The following summary represents the distribution of land surveying services.

TABLE 5.4-8 Distribution of Land Surveying Services Tenantry

Eulette Fields Tenantry Lightfoot Lane, The City Pilgrim Tenantry, Oistins, Christ Church Oscar Beckles Tenantry, New Orleans, The City Estate of Darrell Parris Dec’d, Haggatt Hall, St. Michael Delamare Land, Stephenson Road, Off Martindales Road United Holy Church of America, Wavell Avenue, Black Rock, St. Michael Seibert Leacock Tenantry, Green Hill, St. Michael James Jones Tenantry, Deanes Village, Hindsbury Road, St. Michael Estate of Augusta Blenman, The Ivy, St. Michael Melissa Brathwaite Land, Ashdeane Village, St. Michael Ermine Spencer Land, Fitts Village, St. James Noel Taylor Land, Dayrells Road, Christ Church Woodroffe Land, Burkes Road, Brittons Hill,St. Michael Total

Number of Lots

Cost of Surveying

7 17 12 40 24 34

$ 7,000 23,985 19,300 51,700 34,891 43,000

7 27

10,000 31,300

2 2 5 2 4 3

1,700 11,500 11,500 6,210 6,500.00 4,800

186

263,731

Barbados Economic and Social Report 2008

V. Social Sector Developments

Another eleven (11) landowners were offered assistance and the Commission was awaiting the submission of plans by the assigned land surveyors.

who actually exercised the right to purchase continued to be low. This was attributed to the large number of pensioners and indigent persons who live within the GBA.

VALUATIONS PAID

ANALYSIS OF THE PROGRAMME

During the period under review, valuations were also obtained for seven (7) tenantries at a cost of $8,200.

Security of tenure remained a major factor in housing development in Barbados. It was noted that the improvements to the housing stock, and by extension, the localized communities, relied solely on the security of tenure of the tenants. To this end, it was recognised that the Transfer of Title Programme played an important role within Urban Barbados in assisting tenants with security of tenure, thus empowering the individual.

TABLE 5.4-9 Land Valuations Paid

Tenantry

Amount Paid $

Lightfoot Lane, The City Joseph White, St. Stephens Hill

1,200 600

Winifred Trotman, Long Gap, Grazettes

690

Henry Callender, Amity Lodge, Rendezvous

1,610

Eulette Fields, Howells Cross Roads, The Ivy Seibert Leacock, Green Hill

2,300 1,800

Mahon, Dayrells Road, Christ Church Total

1,800 8,200

DEVELOPMENTS At the start of the reporting period, the Commission began the transfer of title process in 482 tenantries and ‘areas of land’ throughout the Greater Bridgetown Area (GBA). The conveying of lots had commenced in 245 of these tenantries and ‘areas of land’. Compared with the number of lots available for purchase, the number of tenants

CONSTRAINTS The challenges experienced by the Transfer of Title Programme, were caused by long delays as a result of the dormancy of the Small Holdings Committee, which was responsible for resolving price disputes involving the Commission and landowners, in addition to matters administered by the Registrar of Titles. Delays were also experienced in the preparation of conveyances and other legal instruments by the attorneys-at-law representing the land owners. Additional challenges experienced by the programme included: 9

Disinterest on the part of qualified tenants to purchase their lots, despite the Government initiative in providing a subsidy; this was largely influenced by the fact that approximately one third of the urban tenants are old aged pensioners who live in the GBA

Impacts on the inability to meet the subsidized and statutory price of $2.50 per square foot of the land

Barbados Economic and Social Report 2008

V. Social Sector Developments

Uncooperative land owners who were unwilling to comply with the legislation

Delays in the preparation and submission of surveyors’ plans by the Land Surveyors

In the reporting period, intermittent stoppages of the Transfer of Title Programme

COMMUNITY ROADS PROGRAMME Between January and December 2008, $7.1 million was expended on capital projects and other activities by the Commission. This figure included the completion of roads and pedestrian access and compensation awarded to land owners affected by the construction of these roads and pedestrian accesses. The expenditure also included professional fees (engineers, land surveys, etc.) and payments to utility companies.

TABLE 5.4-10 Community Roads Programme Sum Expended as @

Name of Road

Montgomery Tenantry Road Kirtons Land Thompson Land Risk Road,Tenantry Waterman Land Garden Land Simmons Land Grannum Road Nicholls Land Holders Land Airlie Tenantry #2 Airlie Tenantry #1 Woodstock Road Butlers Ave Paradise Rd 1&2 Old Montgomery Site Moravian Drive Clarkes Tenantry Clarkes Road Dover Crescent Balsdon Land Barlowe King Tenantry Total

100

Location

Cave Hill, St. Michael Off Villa Rd, Brittons Hill Codrington Hill, St. Michael Risk Road, St. James Off St. Stephen’s Hill Off Perry Gap, St. Michael Off Fordes Road, Christ Church Deacons Rd, St. Michael Off Whitehall Main Road Off Green Hill, St. Michael Off Hinds Hill, St. Michael Off Hinds Hill, St. Michael Off Woodstock Road (Behind School) Bush Hall, St. Michael Off Paradise Rd, Bush Hall Off Whitehall Main, St. Michael Behind Lasco, Christ Church Off Industry Road, Bush Hall Clarkes Rd, Off Paradise Rd, Bush Hall Pleasant View, Cave Hill Opp. Shandre Close, Off Rendezvous Hill Risk Road, Fitts Village, St. James

December, 2008 $ 345,000.00 205,344.48 501,374.46 898,909.00 111,278.95 123,899.85 389,417.56 265,293.27 340,846.66 174,073.19 220,838.64 217,561.03 143,783.35 87,236.93 143,487.47 45,372.35 196,248.30 367,011.92 114,908.33 266,633.94 298,725.95 249,598.00 1,538,498.79

Barbados Economic and Social Report 2008

V. Social Sector Developments

TABLE 5.4-11 Pedestrian Access Name of Road

Location

Sum Expended as @ December, 2008

Road off Syndicate Road

Off Syndicate Road, Bush Hall

$ 166,940.78

Martinique Road

Lower Government Hill

91,579.67

Clarke’s Land

Back Ivy, Opp. 1st Ave

86,326.13

1st Ave. St. Barnabas 1&2

Off 1st. Ave. St. Barnabas

$ 237,747.89

Total

paid

$582,594.47

At the end of 2008, $37,488.16 was with respect to compensating

affected land owners at the following locations.

TABLE 5.4-12 Land Owner Compensation Paid Name of Road

Location

Sum Expended as @ December, 2008 $

McCleans Bottom #2

Britton’s Hill, St. Michael

9,033.36

Ocean View Road

Ocean View Road, Bush Hall

6,356.00

Johnson Land

Seclusion Road, Black Rock

583.00

Pioneer Road

Pioneer Road, Bush Hall

Matthew Drive

Matthew Drive, St. James

4th Avenue Rock Dundo Heights

Lodge Hill, St. Michael

Total

RECREATIONAL FACILITIES The Commission had responsibility for the financial administration of the funds earmarked for the refurbishment of the Old Welfare building at Country Road. A sum of $600,000 was allocated for this project. Out of which, $85,403.78 was disbursed for the refurbishment of the Old Welfare Building during the year.

9,592.80 300.00 11,583.00 37,448.16

URBAN ENTERPRISE LOAN PROGRAMME PROGRAMME EXPENDITURE At the end of the reporting period, the Commission received a total of forty-five (45) small business applications requesting a sum of approximately $615,000 in financing.

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Cash disbursements totaling $135,000 were made to fifteen (15) small business entrepreneurs. Repayment on loans at the end of the twelve-month period stood at $586,000.

POVERTY ALLEVIATION PROGRAMME HOUSE REPAIR/REPLACEMENT PROGRAMME EXPENDITURE

ON THE

PROGRAMME

The services provided under this programme effected relief for those economically marginalized urban residents who require urgent assistance in finding housing solutions and other critical needs. During the reporting period of January to December 2008, the Commission provided an estimated $10.1 million in housing solutions and rendered assistance in other critical areas such as upgrading of sanitary facilities through the provision of waterborne facilities, wells and septic tanks.

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V. Social Sector Developments

TABLE 5.4-13 House Repair/Replacement Programme Programme Activities

Expenditure

New Houses

$2,228,828.13

House Repairs

$6,167,440.41

Wells

$845,733.30

Septic Tanks

$333,336.60

South Coast Sewerage Project

$28,267.00

Recreational Facilities

$90,008.95

Maintenance of Houses

$94,614.60

Pit Eradication Programme

Total

$277,004.77

$10,065,233.76

Barbados Economic and Social Report 2008

E. ENVIRONMENT

V. Social Sector Developments

OVERVIEW During 2008, the Government of Barbados continued to recognize that in order to fulfill the Millennium Development Goals (MDGs) pertaining to the environment, certain global environmental sustainability challenges needed to be overcome. These challenges included climate change, global security and the international economic downturn. Key policy priorities of relevance to the Environmental Division in 2008 included:

Increased energy costs, the need for energy conservation and renewable energy development;

Food security and increased value added development in the agricultural sector including the continued development of the fisheries sub-sector;

Greater participation of the financial sector in enabling growth and development in the local manufacturing, processing, ICT, energy and environmental technology industries;

Promote the rights of employees including improving the physical and environmental conditions of public servants; Diversify and enhance inter-sectoral linkages in the tourism sector namely with environment, agriculture, arts, culture and sports sectors; and

Promote land use policies that recognize agriculture as a major avenue to enhance environmental sustainability and preservation.

NATIONAL CONSERVATION COMMISSION (NCC) POLICY DEVELOPMENT, MONITORING AND EVALUATION (a) Barbados Beach Management Plan The Barbados Beach Management Plan was completed during the course of the year under review. The Project was funded by the NCC and the Organisation of American States (OAS). The plan created clear guidelines for the sustainable management of beach resources to the benefit of stakeholders. Also, the plan sought to reduce conflict over the use of beaches and protection of the wildlife and habitats within the coastal zone. The outputs of the plan were as follows: z

data collection on beach resources;

creation of a beach resource database;

involvement of communities through consultation to increase stakeholders’ participation in beach management; and

recommendations and best practice guidelines for each beach, taking into account stakeholders’ issues, guidelines of the Coastal Zone Management Plan, Physical Development Plan and other relevant research and legislation.

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(b) Community based Coral Reef Monitoring and Management Project

REGULATORY MONITORING AND ENFORCEMENT

This project was funded through the Caribbean Conservation Association (CCA) in collaboration with the NCC and the Centre for Resource Management and Environmental Studies (CERMES) at the Folkestone Marine Reserve and Museum.

During the period under review, personnel from the Warden Department were trained in the following disciplines:

During the review period, the project built capacity at the community level to support identification and analysis of the problems facing coral reefs. In this regard, work was started on: z

the establishment of a local Network of Stakeholders for collaboration and information exchange; and

providing the necessary training to community groups in coral reef education and awareness management planning, and long-term financing and sustainability.

(c) Ambassador Programme The Alexandra School in St. Peter was chosen to participate in the Coral Reef Ambassador Programme, as a Pilot Project. By the end of 2008, twenty-seven (27) students had enrolled in the programme.

(d) Reef Watchers Programme The Reef Watchers Programme continued during 2008, driven by the private sector dive operators. In addition to operating in the Folkestone Marine Reserve, they also continued to monitor conditions in four (4) reefs in the area. At the end of 2008, seventeen (17) volunteers were trained by CERMES.

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V. Social Sector Developments

Customer Service;

Security Management;

First Aid; and

Tourism Awareness.

EDUCATION, COMMUNICATION AND PUBLIC DEMONSTRATION INITIATIVES (a) Arbor Day During 2008, the annual Arbor Day activities were held at Green’s Playing Field, St. George. The theme was “Together We Revegetate and Educate to ensure Earth’s Survival (Trees).” The Annual Arbor Expo was held at Codrington House, on September 27, 2008. The Expo featured displays of products and byproducts of trees and nature workshops, entertainment and a children’s play area. As part of the Arbor Day celebrations for 2008, the Commission hosted two (2) plant workshops. The first was held on the 24th of September and the second was held on 27th of September. These workshops dealt with the importance of plant life and trees, plant propagation and the treatment and eradication of pests and diseases.

Barbados Economic and Social Report 2008

V. Social Sector Developments

(b) Adopt-a-Beach/Park Initiative

INFRASTRUCTURE INVESTMENT PROJECTS

The Commission continued the Adopt-aBeach/Park initiative during the period under review, and the following beaches were adopted: –

BATH BEACH REDEVELOPMENT PROJECT

Worthing Beach, Christ Church; adopted by the Barbados National Trust.

Enterprise Beach, Christ Church; adopted by the Ministry of Tourism.

Long Beach, Christ Church; adopted by Environmental Youth Network.

Browne’s Beach, Bay Street, St. Michael; adopted by Sunshine Optimist Club.

Drill Hall Beach, St. Michael; adopted by G4S Security (Securicor).

The NCC continued its re-vegetation project during 2008. Out of this, they developed the project entitled “Capacity Building in Youth for Sustainable Land Management”. The purpose of this project was to expand on this success in a major way and bring the youth on board to tackle the challenges of sustainable land management. This project sought to empower the youth through training in land management skills and information technology skills, which are applicable and very relevant to the Barbados situation. This is envisaged to be the Barbados National Park and Natural Heritage Conservation Area.

The NCC embarked on the Bath Beach Redevelopment Project, which involved the construction of a new beach facility and snackette at the location. The Commission approved funding in the sum of $350,000 for the execution of the project. Complementary to the Civil Works Programme, the Commission upgraded the play park in the area, and also re-landscaped the environs of the new beach facility and snackette.

ENVIRONMENTAL ENHANCEMENT AND MAINTENANCE During 2008, the NCC continued its programme relative to the maintenance of the parks and beaches under its control. Specialised play equipment was donated by the Barbados Children’s Trust for installment at Lammings, St. Joseph; Gall Hill, St. John; Ellerton, St. George; and Silver Sands, Christ Church. Equipment was also imported by the Commission for installation at King George V Memorial Park, St. Philip; Bath Beach, St. John; and Errol Barrow Park, St. Michael. Regular maintenance of the parks and open areas and beaches was executed during the period under review. The maintenance included: the provision of additional seating in the beaches and in the parks; to the structures which include beach facilities; lifeguard towers; and esplanades.

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Barbados Economic and Social Report 2008

COASTAL ZONE MANAGEMENT UNIT (CZMU) REGULATORY MONITORING AND ENFORCEMENT MOORING BUOY PROJECT Under the permanent mooring buoy project, no new moorings were deployed during 2008. Approximately $45,000 was spent on this project in terms of equipment, cost and man-hour allocations.

MARINE RESOURCES MONITORING During the review period, the Unit continued its joint coral bleaching project with CERMES, UWI. As part of this initiative, it was necessary for the Unit to establish permanent coral monitoring sites to measure water temperature and light transmissibility. Approximately $22,000 was spent on allocations of labour time, equipment purchases and deployment. During 2008, no intensive coastal water quality testing analysis was performed due to operational issues with the Government Analytical Services Laboratory. The Unit made arrangements with CERMES, UWI, to provide analytical services for the upcoming Water Quality Monitoring Programme. Recognizing the importance of collecting basic site-specific onshore weather data, the Unit installed eleven (11) coastal weather stations. It also

106

V. Social Sector Developments

implemented a monthly rotational maintenance programme to ensure continuous data collection at these affected locations. The CZMU placed considerable emphasis on highlighting the plight of coral reefs around Barbados as part of the Unit’s initiative to promote education and awareness of coral reefs. Several activities were held during the year, which included an official launch to the year’s activities; art, science and cultural exhibitions and activities; the successful hosting of a regional Coral Reef Crime Scene Investigation training course on coral reef damage; a public awareness sensitization dinner and fashion design show; and the launch of a book entitled “Barbados: A Coral Paradise”. Approximately $500,000 was spent on these activities.

COASTAL PLANNING AND MANAGEMENT During 2008, the Unit received ninety-one (91) applications from the Town and Country Development Planning Office, which were all processed and returned. This office participated in long-standing committee meetings with the relevant developers for several large projects including: the Pierhead Development Project; Harrison’s Point Development; and the Retreat Marina. The Unit continued to provide advice to developers who identified with such an interest.

PUBLIC EDUCATION Lectures and presentations continued to be a routine public education outreach programme. Topics on solid waste management, the importance of coral reefs; careers in marine science; and coastal ecology, to list a few, were presented across the island.

Barbados Economic and Social Report 2008

EDUCATION, COMMUNICATION AND PUBLIC DEMONSTRATION INITIATIVES As part of its annual training programme, the Unit undertook an Internship Programme during the summer period of 2008. Five (5) students were interned at the CZMU:

V. Social Sector Developments

ENVIRONMENTAL PROTECTION DEPARTMENT (EPD) POLICY DEVELOPMENT, MONITORING AND EVALUATION The following were planned for the financial year 2008/2009:

Two (2) University Level Students;

Review and revision of the ambient air quality policy paper;

Two (2) Barbados Community College students; and

Review and revision of the Standard Operating Procedures (SOPs) for the Department;

The programme allowed the interns to actively participate in all aspects of the functions of the office, attend meetings with staff, as well as, execute a research project that was presented to staff and invited guests at the end of the period.

Amendment of national oil spill contingency plan;

A strategic assessment of the activities, operation and policies of each section of the Department;

INFRASTRUCTURE INVESTMENT PROJECTS

Liaise with relevant government agencies i.e. Ministry of Health and the Sanitation Service Authority regarding solid waste management policies;

Development of programmes to facilitate the handover of the indoor air quality programme;

Development of updated guidelines on fuel and waste oil handling, storage and disposal practices; and

Development of guidelines for Best Environmental Practices (BEP) in construction activities along the coastline.

One (1) Secondary School Student.

COASTAL INFRASTRUCTURE PROGRAMME (CIP) During the review period, there were several delays associated with the execution of the CIP, which were outside the control of the CZMU. Specifically, they were related to finalized issues on: the provision of contracts; the achievement of a suitable resolution to the acquisition of land associated with the project areas; and obtained access across some areas that required lease arrangements to be developed for the project duration. As a result of these delays, the projects of the Crane, Holetown Lagoon and Tent Bay were not initiated.

Two (2) of the eight (8) planned initiatives were completed during 2008. They were: the amendment of the national oil spill contingency plan; and liaising with relevant government agencies regarding solid waste management.

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Barbados Economic and Social Report 2008

REGULATORY MONITORING AND ENFORCEMENT Initial work was started on the air pollution source database. The development of such a database provided a better understanding of the sources of air pollution in Barbados and facilitated easier monitoring and control of ambient quality. During 2008, audits of commercial operations provided better understanding of the sources of air and marine pollution. Audits of West Indian Rum Distillery and Mount Gay Rum Distillery were completed during the review period and reports were prepared. A total of 2,360 derelict vehicles and 168 derelict buildings were demolished during 2008 at a combined cost of $1.0 million. This included the removal of scrap metals. Part of the programme to estimate pollutant loading from specific sectors was completed. Plans were drafted to educate those sectors who were directly involved with Marine Pollution Control Act and its requirements. Since the beginning of 2008, the Building Development Section was involved in the following routine activities: approval and refusal of building applications; inspection of buildings for use as educational facilities, nursing homes and day-care facilities; and the inspection of septic tanks. The Marine Pollution Control Section received and investigated twenty-five (25) complaints which pertained to the pollution of the marine environment. The majority of the complaints pertained to wastewater discharges.

108

V. Social Sector Developments

GROUNDWATER MONITORING Groundwater monitoring was conducted at twenty-four (24) public supply and nine (9) agricultural wells across the island to assess the quality of the island’s groundwater. A total of 394 samples were taken; 133 samples from the Belle Catchment; 100 from the Hampton Catchment; ninety-nine (99) from the West Coast Catchment and sixty-two (62) from various springs across the island. Half of the samples collected were analysed for bacteriological parameters and the other half for inorganic parameters. Similarly, monitoring was conducted at a number of popular bathing beaches on the west and south coasts. One thousand three hundred and sixty-nine (1,369) samples were collected along the south coast and 804 samples were collected along the west coast. All samples were analysed for faecal coliform and enterococci.

AIR AND NOISE QUALITY The Air and Noise Quality Section received sixty-one (61) complaints regarding ambient air quality, indoor air quality and noise issues. Most of the complaints received were nuisance and indoor air quality complaints. Of the sixty-one (61) complaints received, thirty (30) were investigated.

EDUCATION, COMMUNICATION AND PUBLIC DEMONSTRATION INITIATIVES A number of initiatives were planned to increase the public’s awareness not only to the functions of the EPD, but also to various environmental issues. During 2008, the first issue of the newsletter was published and distributed in September. Presentations were made to students of the Barbados Community College’s (BCC) Environmental Science Programme to educate them on the role and responsibility of the EPD. The Department also hosted two (2) interns of the BCC’s Environmental Science Programme.

Barbados Economic and Social Report 2008

NATIONAL GOVERNANCE PROCESSES, PARTNERSHIPS AND COOPERATION ARRANGEMENTS In 2008, the National Oil Spill Response Committee coordinated a call out/notification exercise. The objective of the exercise identified the strengths and weaknesses of the National Oil Spill Contingency Plan in respect of notification, call-out and mobilization.

V. Social Sector Developments

for the Regional Action Plan on Marine Litter in the wider Caribbean. The project focused on educating the public on the causes and effects of marine litter and engaging community participation in developing a National Marine Litter Monitoring Programme. Additionally, the Department participated in the following workshops and meetings: z

a regional training workshop on Mainstreaming Land-Based Sources and Activities Management at the National Level for the English Speaking Caribbean Workshop, held in Jamaica;

During 2008, a promotional workshop was conducted to sensitize stakeholders to the LBS Protocol of the Cartagena Convention. This workshop was co-hosted by the EPD and the CZMU with partial funding from Regional Coordinating Unit of the Caribbean Environment Programme of the United Nations Environment Programme (UNEP/CAR/RCU).

the 13th Intergovernmental Meeting on the Action for the Caribbean Environment Programme and 10th Meeting of the Contracting Parties to the Convention for the Protection and Development of the Marine Environment of the Wider Caribbean Region, held in Antigua and Barbuda; and

The Department participated in a marine litter pilot project coordinated by UNEP/CAR/ RCU and funded by Swedish International Development Agency (SIDA). This project was a component of the implementation plan

the 5th Meeting of the Contracting Parties (COP5) to the Protocol Concerning Specially Protected Area and Wildlife (SPAW) in the Wider Caribbean Region, held in Antigua and Barbuda.

EXTRA-NATIONAL GOVERNANCE PROCESSES, PARTNERSHIPS AND COOPERATION ARRANGEMENTS

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V. Social Sector Developments

ENVIRONMENTAL UNIT

clubs and churches, with initiating or enhancing projects within their communities which have an environmental theme. During 2008, $100,000 was awarded to eight (8) community groups. These were as follows:

THE FUND FOR NON-PROFIT ORGANIZATIONS This fund was established in the Financial Year 2002/2003, to assist community-based organizations, including schools, PTAs, sports

Name of Organisation Barbados National Trust (Nature Programme at Welchman Hall Gully)

$13,350

Project Description The execution of a gully/environmental awareness programme based in Welchman Hall Gully for three (3) primary school groups.

Emerald Park Green Space

$5,000

The establishment of a Green Space/Park to be used as a meeting place and activities space for residents.

Harmony Lodge Neighbourhood Watch

$2,100

To facilitate the refurbishment of the Harmony Lodge Park which provided a meeting place/ recreational space for residents.

Jordan Hackette Kempo Karate School

$5,700

The execution of a recycling and beautification project at the Deighton Griffith School as a means of encouraging environmental stewardship among the youth of both the Kempo Karate School and the Deighton Griffith School.

The Grapefruit & Molasses Foodies

$13,420

To provide environmental stewardship at the community level through the development of agri-tourism and gastronomic offerings in the area.

Project Discovery

$51,730

To facilitate the total development of students at pre-university stage of their development, building clearly defined bridges to link academic development to community-service, while making them more globally aware, culturally literate, civically engaged and responsive to the needs of others.

The Elohim Family Centre

$3,000

To assist with the staging of a community based event.

The Future Centre

$5,700

To facilitate the staging of a Regional Workshop for Youth on Climate Change.

TOTAL

110

Grant Amount

$100,000

Barbados Economic and Social Report 2008

V. Social Sector Developments

Environment Month and Awards

The 2008 Awards were presented under the theme “Living sustainably is…living responsibly”. Major focus was given to individuals, organizations and business entities to demonstrate their contribution to sustainable living by way of sound environmental practices, community based stewardship involvement, and by providing good leadership examples through innovation.

Establishment of the Barbados Sustainable Finance Task Force in May 2008. The purpose of the Task Force was to raise the level of awareness and education among stakeholders in the local financial sector, as it relates to the challenges and benefits associated with the development and implementation of a sector-wide sustainable finance agenda.

Commencement and partial completion of a baseline survey to determine the current state of sustainable finance practices in Barbados.

The successful hosting of a regional sustainable finance training workshop and dialogue in November 2008.

Also in November 2008, a representative of the Barbados Sustainable Finance Task Force made a presentation during a 1-day workshop in Trinidad and Tobago organized by their Environmental Management Authority and facilitated by the UNEP-FI. The presentation highlighted the preliminary findings of the baseline survey of sustainable finance practices in Barbados.

Environment month focused on Sustainable Living, as well as the impacts of Climate Change. During the review period, the Barbados Institute of Environmental Professionals was launched, and this organization hosted a lecture series which gave focus to Climate Change issues locally and regionally. The various departments staged seminars and workshops some of which were audience specific, and dealt with popular issues that included coastal planning, building regulations for nursing homes, and a youth design fest. This brought together young stakeholders who made contributions to the development of a local comic book series. One of the highlights of the month continued to be “De Heart Uh Barbados” celebrations in Sturges, St. Thomas, hosted by the community in collaboration with the Natural Heritage Department.

The Ministry’s expenditure for this program was approximately $30,000.

NATIONAL GOVERNANCE PROCESSES, PARTNERSHIPS AND COOPERATION ARRANGEMENTS

F. Law

Achievements during 2008 included:

OVERVIEW

Successful hosting of a Breakfast Dialogue on Sustainable Finance for local stakeholders held in April 2008 at the Savannah Hotel, Barbados. The event report was subsequently prepared and published for ongoing wide dissemination.

AND ORDER

Despite the challenges within the region with the rise in serious and violent crimes during 2008, Barbados remained quite a safe and peaceful country for its citizens, visitors and investors. There were no major problems related to crime during the review period and

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Barbados Economic and Social Report 2008

anecdotal evidence suggested that the fear and anxiety of crime remained somewhat manageable. The effective control of crime and disorder in Barbados was for the most part due to the policing programs of the Royal Barbados Police Force. The management of crime was a priority on the Force’s agenda and as a result all the strategies were designed to ensure that the country remained safe. During the review period, a profound community policing based approach accentuating the involvement of the youth was pursued. However, it was acknowledged that more attention should be paid to the involvement of the youth in crime. Illicit use and abuse of drugs especially marijuana and the concomitant use of firearms were also of major concern for the Force during the year. The use of firearms in crimes against the person led to the strengthening of the Antigun Enforcement Unit and a more intensive approach to policing the borders. However, Barbados continued to be troubled by drug trafficking from the neighbouring countries.

V. Social Sector Developments

in the category, crime against property, namely residential and commercial burglaries. Major and minor crimes against property increased by 245 cases and 165 cases, to record 2,395 and 2,299 cases, respectively. Major crimes against property accounted for 26.6 per cent of reported crimes during the year, while minor crimes against property accounted for 25.6 per cent. Other categories of crimes which comprised of drug, firearm and ammunition, escaping lawful custody and public order breaches accounted for 17.2 per cent of reported crimes. Given the increase in crime trends during 2008, an Anti-burglary Initiative programme along with other measures were put in place to combat the level of criminal activity. Figure 18 National Reported Crimes

During 2008, there was a marginal increase of 1.0 per cent in crime reported in contrast to the 4.0 per cent reduction recorded in the previous year. The total number of reported crimes was 8,982, representing an increase of sixty-nine (69) cases over 2007.

CRIME TRENDS According to the National Overview on Reported Crimes for 2008, major crimes against the person accounted for 9.1 per cent or 819 cases of reported crimes, an increase of 1.0 per cent or eleven (11) cases over the previous year. In addition, minor crimes against the person increased by 2.0 per cent to record 1,746 cases. This category of crime accounted for 19.4 per cent of reported crimes. Another area of critical concern in reviewing crime trends in 2008 was

112

JUVENILES During 2008, statistical data revealed that there was a reduction in criminal activity committed by juveniles. A total of 103 cases were recorded in 2008, fifteen (15) cases less than that reported in 2007. There were thirty (30) minor assault cases, ten (10) drug related crimes and three (3) cases involving burglary from dwelling houses. The year 2008 represented the second consecutive year for the general reduction in criminal activity in almost all subcategories of crimes committed by juveniles.

Barbados Economic and Social Report 2008

V. Social Sector Developments

DRUG CRIMES In 2008, drug related crimes remained unchanged at 949 cases. During the review period, 717 persons were charged for the possession of cannabis, forty-seven (47) persons charged for the trafficking of cannabis

and seventeen (17) persons charged for the importation of cannabis. With regards to cocaine, fifty-one (51) persons were charged with possession while seven (7) were charged for the importation of cocaine.

TABLE 5.6-1 Cannabis and Cocaine Drug Offences 2006 -- 2008 Category

2006

Cannabis Possession Cultivation Importation Exporting Trafficking Supply Possession of apparatus Total

2007R

615 10 6 1 34 24

685 12 20 1 148 143

691

2008P Category

717 7 17 0 47 31 0

1009

819

2006

Cocaine Possession Cultivation Importation Exporting Trafficking Supply Possession of apparatus Total

2007R

2008P

79 0 0 0 5 6

53 0 4 0 26 28

51 0 7 0 5 2

181

130

158

SOURCE: Research Department, Royal Barbados Police Force

TABLE 5.6-2 Cases Involving Firearms 2004 -- 2008 CRIME CLASSIFICATION

January-December 2004

2005

2006

2007R

2008P

MURDER ROBBERY ASSAULT W/I ROB

9 85 1

7 73 2

14 118 3

6 109 8

8 116 9

AGGRAVATED BURGLARY ENDANGERING LIFE

24 49

25 40

44 33

38 36

55 22

174

156

265

254

279

OTHER CRIMES TOTAL

SOURCE: Research Department, Royal Barbados Police Force

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Barbados Economic and Social Report 2008

V. Social Sector Developments

CRIMES INVOLVING FIREARMS

Endangering life with a firearm accounted for twenty-two (22) cases, a decrease of fourteen (14) cases over the previous year. Other crimes accounted for sixty-nine (69), twelve (12) more than in 2007, while there were fifty-five (55) aggravated burglary cases, an increase of seventeen (17) cases.

In 2008, 279 firearm related cases were reported compared with 254 cases in 2007. Of the figure, eight (8) murders were committed with the use of firearms, whilst assault with intent to rob accounted for nine (9) cases.

TABLE 5.6-3 Serious Crimes 2001 -- 2008 2008

No. DIFF

% DIFF

-2

-8.0

-2

-66.7

245

243

177

211

19.2

-10

-25.0

-8

-13.8

350

316

289

330

367

392

394

0.5

63.6

105

112

103

-9

-8.0

1561

1275

1233

1266

904

919

991

949

-42

-4.2

CRIME CLASSIFICATION 2001

2002

2003

2004

215

269

226

208

Sex with a Minor

Indecent Assault

312

Assault with Intent to Rob Aggravated Burglary

Murder Manslaughter Serious Bodily Harm

Robbery

Drug Related Crime

2005 2006R

2007

SOURCE: Research Department, Royal Barbados Police Force

CRIME AGAINST THE PERSON There were twenty-three (23) murders in 2008 of which sixteen (16) were solved. Murder cases decreased by two (2) or 8.0 per cent when compared with the 2007 figures. In this category of crime, serious bodily harm, robbery, and assault with the intent to rob increased by thirty-four (34), two (2) and four (4) cases, respectively. Aggravated burglary decreased by nine (9) cases or 8.0 per cent from 112 cases in 2007 to 103 cases in 2008. Sexual intercourse with minors decreased by ten (10) cases or 25.0 per cent, from forty (40) to thirty (30) cases in 2008. There were twelve (12) serious indecency cases and sixty-two (62) rape cases recorded during the review period. Minor crimes against the person increased by twenty-nine (29) cases from 1,717 cases in 2007 to 1,746 cases in 2008.

114

CRIME AGAINST PROPERTY Residential crime remained a major challenge for the local enforcement during 2008. There were 211 cases more than the 1,178 cases reported in 2007. Commercial burglary increased by seventy-six (76) cases to record 470 cases during the review period. Nonetheless, criminal damage to property decreased by 10.9 per cent or fifty-seven (57) cases. With respect to minor crimes against property, theft from persons decreased by 28.0 per cent to record 206 cases during the year. Also of particular interest was theft of motor vehicles which decreased by 20.6 per cent, twenty (20) cases less than the ninety-seven (97) recorded in 2007. In contrast, theft of agriculture produce increased by twenty-seven (27) cases to record forty-nine (49) cases in 2008.

Barbados Economic and Social Report 2008

V. Social Sector Developments

CRIME AGAINST VISTORS Crimes against visitors during 2008 registered 235 cases. Similar to reports in previous years, hotel/apartment burglary remained the most prevalent crime committed against visitors, with sixty-six (66) cases recorded. Statistics further revealed that there were thirty-seven (37) robberies committed

against visitors, twenty-five (25) theft from persons while forty-three (43) visitors were victims to theft on beaches. There were four (4) rape cases reported and two (2) other sex related crimes. No murders were committed against visitors during 2008.

TABLE 5.6-4 Crime Against Visitors 2004 -- 2008 CRIME CLASSIFICATION

2004

2005

2006R

2007R

2008P

MURDER

SERIOUS BODILY HARM

HARASSMENT

RAPE

OTHER SEX CRIMES

107

113

BURGLARY OTHER

THEFT FROM M/V

THEFT FROM PERSON

THEFT FROM BEACHES

OTHER THEFT

240

166

237

128

235

WOUNDING (MINOR)

ROBBERY ASSAULT W/INT TO ROB AGG. BURGLARY BURGLARY HOTELS ETC.

ALL OTHER OFFENCES TOTAL

Accomodation includes hotels, apartments, guest houses, villas etc. SOURCE: Research Department, Royal Barbados Police Force

TRAFFIC During 2008, there were seventeen (17) fatal accidents recorded, a decrease of 55.2 per cent or twenty-one (21) cases less than the previous year. During the review period, there

were 147 serious accidents, thirty-nine (39) accidents more than that reported in 2007. Minor accidents increased by 6.9 per cent or 182 cases to 2,446. The number of accidents without serious injury recorded in 2008 was 6,140, an increase of 4.1 per cent over the previous year.

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Barbados Economic and Social Report 2008

V. Social Sector Developments

TABLE 5.6-5 Road Accidents 2005 -- 2008 Category Fatal

2005

2006

2007

2008P

Serious Slight W/O Injury

132 2,304 5,828

132 2,625 5,897

108 2,264 5,897

147 2,446 6,140

Total

8,303

8,676

8,307

8,750

Source: Research Department, Royal Barbados Police Force

INITIATIVES The Force continued to pursue a mixture of initiatives centred around community engagement and enforcement as well as partnering with key players. One of the expected outcomes from these approaches was the further development of the community wellbeing and empowerment. The crime management strategy targeted those crimes impacted on the safety and security of the citizens. The Anti-burglary Initiative ‘Operations Safe Homes’ was a dominant feature in the crime prevention strategies and was operationalized island wide. The anti-drug strategy designed to cut off the supply of illicit drugs coming into Barbados at our borders was pursued in collaboration with key players and with regional counterparts. The Force also continued to work with other partners such as the National Council on Substance Abuse, schools and youth groups to curb the demand for drugs on the island. During the review period, the firearm reduction strategies focused on getting illegal guns off the island and saw the strengthening of counter firearm operations.

116

The tourism policing strategies was underscored by joint patrol operations by police officers and members of the Barbados Defence Force on beaches and at key points throughout the island. As for road policing, there was also a policing strategy designed to keep our roads safe and allow for the free flow of traffic. Operation Road Order Maintenance was a key feature of the strategy and targeted those persons whose behaviour posed serious danger to the lives of other road users. In 2008, the Force continued to execute a vigorous training strategy to support its programmes and objectives. Ethics and customer service as well as fraud, and computer crime related training were critical components within the training strategy. Regionally, the Force continued to be represented within the region and actively participated in regional initiatives undertaken by regional organizations such as the Regional Security System. It remained committed to regional cooperation and sharing of information and intelligence.

Barbados Economic and Social Report 2008

ECONOMIC AND SOCIAL OUTLOOK FOR 2009 According to the latest IMF forecast, global activity is expected to decline by around 0.5 per cent to 1.0 per cent in 2009, the first contraction in the post-war period. Economic growth in major economies such as the USA and the Euro Area is expected to fall negatively to 2.6 per cent and 3.2 per cent respectively. Emerging economies are expected to slow sharply, growing by just over 3.0 per cent in 2009. There is hope that a turn around could be seen during 2010 as the fiscal stimulus announced by major developed and emerging economies take shape. Based on this outlook, the projections from the Central Bank of Barbados is for real growth to fall by between zero and 2.0 per cent. The greatest impact will be felt in the tourism sector, which is projected to contract by between zero and 5.0 per cent due to expected declines in visitor arrivals from major markets such as the UK and the USA. It is however anticipated that with the increased marketing efforts by the Barbados Tourism Authority, the impact on the sector could be softened. As a consequence of the reduction in tourism activity, the negative effects on the nontraded sectors are likely to worsen. In particular, output growth from wholesale and retail activity, business and other services, as well as transport, storage and communications, is expected to fall for the first time since 2002. Furthermore, value-added in the construction sector is forecasted to register a further decline in 2009. As the economy weakens, greater upward pressure is expected to be placed on the unemployment rate. In contrast, inflationary pressures are expected to ease somewhat,

V. Social Sector Developments

mainly due to the reductions in domestic fuel prices witnessed during the latter half of 2008, and further decreases in commodity prices projected for 2009. The twelve-month moving average rate of inflation is forecasted to be in the range 4.0 per cent to 5.0 per cent in 2009. In line with the deterioration in economic activity, domestic deposits are forecasted to slow further from the level recorded at the end of 2008. Similarly, credit expansion should not be as buoyant, principally because of the increasingly uncertain economic climate. As a result, there should be some tightening of liquidity in the banking system. Government should still be able to finance its operations using mainly domestic resources but there will be some need for foreign borrowing to support the counter-cyclical policies to be introduced during the year. In terms of the balance of payments, the forecasts suggest some narrowing of the current account deficit, as a reduction in import prices (particularly oil prices) is expected to compensate for slower growth in travel receipts and a weak expansion in domestic exports during 2009. In addition, boosted by an increase in foreign financing and higher private capital inflows, the capital account surplus is anticipated to be higher than in 2008. Consequently, the NIR is expected to contract by less than the amount recorded in 2008. During 2009, the Government will continue to carry forward its various social programmes in education, health and the environment. In addition, greater focus will be paid to those vulnerable groups who will be most impacted upon by the current economic crisis. In this regard, effort will be made to ensure that these persons are provided with the adequate social safety nets.

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Barbados Economic and Social Report 2008

Appendices

LIST OF APPENDICES APPENDIX 1

Estimates of Real Gross Domestic Product 1987-2008 ....................................A -- 1

APPENDIX 2

Gross Domestic Product – Breakdown of Selected Sectors (Current Prices) 1987 - 2008 .............................................................................A -- 2

APPENDIX 3

Expenditure on Gross Domestic Product 1987- 2008 (Current Prices) ............................................................................................... A -- 3

APPENDIX 4

Gross Domestic Product by Industry of Origin 1987 - 2008 (Current Prices) ............................................................................................... A -- 4

APPENDIX 5

International Reserves 1998 - 2008 ................................................................ A -- 5

APPENDIX 6

Direction of Trade – Total Exports 1987 - 2008 ............................................... A -- 6

APPENDIX 7

Direction of Trade – Total Imports 1987 - 2008 ............................................... A -- 7

APPENDIX 8

Visible Trade Balance -- Imports and Exports 1987 - 2008 ............................ A -- 8

APPENDIX 9

Selected Domestic Exports 1987 - 2008 ........................................................... A -- 9

APPENDIX 10

Retained Imports by Broad Economic Categories 1987 - 2008 ..................... A -- 10

APPENDIX 11

Central Government Operations 1999/00 - 2008/09 ...................................... A -- 11

APPENDIX 12

Current Revenue by Economic Classification 1999/00 - 2008/09 ................. A -- 12

APPENDIX 13

Current Expenditure by Economic Classification 2001/02 - 2008/09 ......................................................................................... A -- 13

APPENDIX 14

National Debt – Central Government 1998 - 2008 ........................................ A -- 14

APPENDIX 15

Monetary Survey 1987 - 2008 ....................................................................... A -- 15

APPENDIX 16

Commercial Banks – Selected Balance Sheet Items 1987 - 2008 ................... A -- 16

APPENDIX 17

Commercial Banks Credit – Sectoral Distribution 1998 - 2008 ..................... A -- 17

APPENDIX 18

Long Term Credit for Housing 1987 - 2008 (Selected Institutions) .................................................................................. A -- 18

APPENDIX 19

Selected Interest Rates 1987 - 2008 .............................................................. A -- 19

APPENDIX 20

Labour Force and Employment by Sex 1987 - 2008 ...................................... A -- 20

Barbados Economic and Social Report 2008

Appendices

LIST OF APPENDICES -- (Cont’d)

APPENDIX 21

Retail Price Index – Annual Averages 1987 - 2008 ....................................... A -- 21

APPENDIX 22

Production of Selected Agricultural Commodities 1998 - 2008 ..................... A -- 22

APPENDIX 23

Sugar Statistics 1987 - 2008 ......................................................................... A -- 23

APPENDIX 24

Index of Industrial Production 1987 - 2008 ................................................... A -- 24

APPENDIX 25

Selected Indicators in the Tourism Industry 1988 - 2008 .............................. A -- 25

APPENDIX 26

Tourist Arrivals by Country of Residence (Stay Overs) 1988 - 2008 .................................................................................................. A -- 26

APPENDIX 27

Domestic Crude Oil and Gas Production 1987 - 2008 ................................... A -- 27

APPENDIX 28

Population by Sex and Age Group ............................................................... A -- 28

APPENDIX 29

Population, Rates of Birth, Death and Infant Mortality 1984 - 2008 ............ A -- 29

Key P: Provisional

E: Estimated

R: Revised

SOURCE:

34.7 33.7 34.7 35.8

36.1 34.0 33.8 35.4 32.5

36.1

36.7 37.2 34.4 33.3

31.1

34.8 34.1 33.0 32.9

31.8

34.6 31.8

Non-Sugar Agriculture

10.0 9.7 9.1 9.3

10.5 9.4 10.0 8.4 9.2

11.0

5.7 6.2 7.1 9.4

6.0

6.6 6.3 5.8 5.8

6.2

7.2 6.7

Mining and Quarrying

63.2 63.9 62.1 61.8

67.6 61.0 61.6 60.6 61.9

69.3

81.4 86.6 90.8 73.2

78.9

87.9 83.8 76.0 73.9

90.3

80.3 85.7

Manufacturing

39.9 42.7 43.1 42.5

34.5 36.0 37.3 38.4 39.1

34.0

29.8 31.3 32.3 33.3

28.6

26.4 27.0 27.4 27.5

26.1

23.7 25.3

98.8 105.6 98.9 95.5

73.2 78.2 84.2 84.7 87.1

72.4

47.4 49.3 56.3 65.8

43.2

60.1 55.6 39.9 40.7

66.9

56.8 61.9

Electricity, Gas Construcand Water tion

Central Bank of Barbados Outlook Tables, February 12, 2009 R = Revised P = Provisional

16.4 14.5 14.6 13.6

16.5 25.4 27.8 20.6

1995R 1996R 1997R 1998R

2005R 2006R 2007P 2008P

22.3

1994

22.9

29.5 28.0 23.1 20.7

1990 1991 1992 1993

25.1 21.4 19.3 15.6 14.8

28.2

1989

2000R 2001R 2002R 2003R 2004R

35.4 34.1

1987 1988

1999R

Sugar

Year

215.7 227.3 240.7 242.4

189.4 183.4 185.6 193.2 204.9

187.1

161.5 166.6 181.1 203.2

161.1

171.9 161.2 148.4 152.0

181.0

172.3 176.6

Wholesale & Retail Trade

164.4 167.0 169.5 166.7

157.2 147.9 143.8 153.8 168.2

143.9

130.3 132.5 135.1 143.6

129.0

122.2 115.8 113.4 117.9

135.5

111.4 123.1

Tourism

89.9 96.1 101.4 104.2

79.2 79.5 76.9 80.1 85.1

78.9

69.5 70.6 72.7 76.2

68.1

68.9 67.6 65.2 66.0

68.9

64.5 64.8

Transport, Storage & Communications

ESTIMATES OF REAL GROSS DOMESTIC PRODUCT 1987 - 2008 (1974 Prices)

APPENDIX 1

183.4 193.3 203.5 208.5

166.1 165.0 161.2 168.3 175.5

165.7

149.4 150.1 154.8 165.2

145.3

150.5 147.7 139.9 141.1

155.5

145.7 150.1

Business & General Services

148.1 152.6 157.1 161.8

134.4 132.2 140.7 135.5 143.1

130.8

115.9 119.9 123.6 125.6

113.1

120.3 117.8 112.0 112.0

118.6

116.2 117.4

Government Services

1063.7 1106.4 1134.7 1142.1

973.4 948.0 954.4 973.9 1021.4

952.1

844.2 875.9 916.0 949.3

826.8

879.1 844.7 784.1 790.5

909.1

848.2 877.5

TOTAL

($ M)

Barbados Economic and Social Report 2008 Appendices

A -- 1

A -- 2

102.9 105.8 100.5

101.0 107.3 101.7 114.7 100.0

147.6 160.9 122.0 96.3 146.3

126.8 144.4 129.0 154.6 117.7

126.1 130.7 131.6 127.2

1987 1988 1989

1990 1991 1992 1993 1994

1995 1996 1997 1998 1999

2000 2001 2002 2003 2004

2005R 2006R 2007R 2008P

64.4 64.2 61.2 52.9

51.4 92.5 76.1 101.4 60.3

87.7 95.6 58.0 32.6 83.9

40.9 56.3 41.1 55.6 38.3

51.8 58.5 49.8

43.8 49.5 48.9 51.8

46.6 31.2 33.7 34.0 40.6

34.5 41.3 40.2 41.8 44.4

32.9 34.0 33.4 30.5 33.3

25.1 25.4 31.7

LiveStock

SOURCE: Barbados Statistical Service

Total

Year

Food Crops

0.2 0.6 0.2 0.4

0.1 0.1 0.2 0.3 0.2

0.8 0.1 0.3 0.2 0.1

0.4 0.4 0.4 0.3 0.5

2.0 1.7 1.4

Other Cultivation

NON-SUGAR AGRICULTURE

17.4 16.4 21.4 22.1

28.7 20.7 19.0 18.8 16.6

24.6 23.9 23.5 21.7 17.9

26.8 16.6 26.8 28.3 27.9

23.9 20.2 17.6

Fishing

321.3 357.1 345.3 384.7

268.7 256.4 263.1 292.7 315.8

211.7 206.4 224.7 243.5 260.8

237.6 230.8 203.2 206.6 208.0

223.6 240.2 233.3

170.3 175.4 182.1 183.9

130.3 125.4 135.3 163.9 169.9

108.0 108.9 114.6 122.3 128.4

112.2 116.7 101.2 104.5 106.2

99.0 102.8 103.7

7.5 7.6 7.0 3.5

15.7 9.8 7.3 6.9 7.5

11.7 12.5 13.2 13.1 14.6

19.0 17.1 12.2 9.1 10.3

28.8 31.7 26.6

6.0 7.8 7.8 7.7

7.6 7.4 7.4 6.7 6.7

4.9 3.9 4.8 5.8 7.3

8.8 7.1 3.7 3.0 3.8

6.8 9.0 8.4

Food, BevTextiles Wood & Wood erages & & Wearing Total Tobacco Apparel Products

48.0 59.2 56.5 57.4

35.8 36.6 37.4 38.7 46.4

27.8 26.8 29.9 33.3 34.3

31.8 30.0 28.8 26.0 28.4

23.7 25.7 30.3

Paper Products, Printing & Publishing

37.0 44.3 42.8 41.4

35.8 36.3 33.6 34.3 33.9

22.4 19.0 24.7 29.9 35.4

26.3 26.1 23.5 24.0 21.5

22.9 28.9 26.7

Chemicals, Oil & NonMetallic Products

MANUFACTURING

37.7 46.5 33.0 75.6

32.6 30.2 31.7 31.7 37.0

28.0 26.7 28.0 29.4 30.4

29.1 24.7 25.2 31.3 27.5

32.0 31.8 25.8

Metal Products & Assembled Goods

GROSS DOMESTIC PRODUCT -- BREAKDOWN OF SELECTED SECTORS (Non-sugar Agriculture and Manufacturing) 1987 - 2008 (Current Prices)

APPENDIX 2

14.8 16.4 16.2 15.2

10.9 10.6 10.3 10.6 14.3

8.9 8.6 9.5 9.7 10.4

10.4 9.1 8.6 8.7 10.3

10.4 10.4 11.8

Other Manufacturing

447.4 487.8 476.9 511.9

395.5 400.8 392.1 447.3 433.5

359.3 367.3 346.7 339.8 407.1

338.7 338.1 304.8 321.3 308.0

326.5 346.1 333.8

Total Selected Sectors

4980.0 5264.4 5658.8 5675.9

4225.8 4233.1 4066.0 4334.7 4601.9

3160.0 3401.1 3606.9 3906.9 4130.3

2965.3 2893.8 2707.3 2801.4 2934.0

2498.9 2667.6 2909.6

GDP at Factor Cost

($ M)

Barbados Economic and Social Report 2008 Appendices

1934.0 2004.1 2157.9

2188.5 2262.6 1977.5 1966.6 1978.1

2305.6 2359.1 2743.3 3093.8 3346.5

3164.6 3196.7 3025.3 3398.6 3802.9

3743.4 4145.5 3856.5 4287.8

1987 1988 1989

1990 1991 1992 1993 1994

1995 1996 1997 1998 1999

2000 2001 2002 2003 2004

2005R 2006R 2007R 2008P

1293.5 1360.3 1720.4 1935.8

1084.3 1142.6 1218.6 1248.5 1199.5

751.8 848.0 927.3 981.5 1026.7

693.7 642.0 639.6 732.2 707.1

497.5 537.3 614.1

Government

5036.9 5505.7 5576.9 6223.5

4248.9 4339.3 4243.9 4647.1 5002.4

3057.4 3207.1 3670.6 4075.3 4373.2

2882.2 2904.6 2617.1 2698.8 2685.2

2431.5 2541.4 2772.0

Total

SOURCE: Barbados Statistical Service * Land Development Included. # Central Government only

Personal

Year

Consumption Expenditure

53.1 61.2 69.5 78.8

112.3 118.5 168.7 117.1 61.6

36.6 79.6 111.8 94.4 118.0

119.2 75.1 44.2 39.8 56.9

67.5 74.1 85.6

Public #* Building Activity

712.4 778.2 767.1 765.6

467.0 397.8 357.7 422.7 542.3

316.6 302.4 360.5 425.6 444.4

331.7 301.5 217.6 241.3 253.6

267.3 321.9 371.8

Private* Building Activity

718.7 850.4 817.3 747.7

574.4 530.2 518.4 581.3 720.6

194.6 248.2 315.1 551.1 601.1

200.4 174.4 87.8 124.8 170.1

125.1 138.9 187.8

Finished Capital Goods

Gross Capital Formation

9.7 10.1 11.5 13.7

7.4 (44.7) (15.6) (5.8) 9.2

19.4 (22.4) 4.4 8.9 29.4

(3.1) 29.5 (48.8) 13.9 23.1

6.8 8.4 11.1

Change in stocks of Finished Goods

1493.0 1699.9 1665.4 1605.8

1161.0 1001.8 1029.2 1115.3 1333.8

567.2 607.8 791.8 1080.0 1192.9

648.2 580.4 300.8 419.8 503.7

466.7 543.3 656.3

Total

3453.5 3420.3 4016.1 3960.5

2664.8 2588.7 2419.4 2720.3 2900.5

2176.6 2379.6 2456.6 2538.1 2551.8

1689.3 1610.1 1588.0 1727.1 1979.9

1340.1 1509.7 1724.0

Exports of Goods and Services

EXPENDITURE ON GROSS DOMESTIC PRODUCT 1987 -- 2008 (Current Prices)

APPENDIX 3

9984.2 10625.9 11258.4 11789.9

8074.7 7929.9 7763.5 8482.8 9236.8

5801.2 6194.5 6919.1 7693.4 8117.9

5219.7 5095.1 4505.9 4845.7 5168.9

4238.3 4594.4 5152.3

Gross Expenditure on GDP

(4013.0) (4252.2) (4354.8) (4707.8)

(2957.1) (2821.5) (2811.3) (3093.0) (3571.9)

(2058.8) (2199.7) (2528.1) (2616.0) (2822.3)

(1779.5) (1701.3) (1329.6) (1536.8) (1683.8)

(1324.6) (1495.1) (1725.2)

LESS: Imports of Goods and Services

5971.2 6373.7 6903.7 7082.1

5117.6 5108.4 4952.2 5389.8 5664.9

3742.4 3994.8 4391.0 5077.4 5295.6

3440.2 3393.8 3176.3 3308.9 3485.1

2913.7 3099.3 3427.1

GDP at (Market Prices)

(1031.1) (1117.4) (1244.9) (1406.2)

(891.8) (875.3) (886.2) (1055.1) (1032.4)

(582.4) (593.7) (784.1) (833.9) (825.3)

(474.9) (500.0) (469.0) (507.5) (551.1)

(414.8) (431.6) (517.5)

LESS: Net Indirect Taxes

4940.1 5256.3 5658.8 5675.9

4225.8 4233.1 4066.0 4334.7 4632.5

3160.0 3401.1 3606.9 4243.5 4470.3

2965.3 2893.8 2707.3 2801.4 2934.0

2498.9 2667.7 2909.6

Gross Domestic Product at Factor Cost

($ M)

Barbados Economic and Social Report 2008 Appendices

A -- 3

A -- 4

68.7 67.1 49.7

58.5 54.6 51.1 46.8 49.6

50.8 64.1 69.0 56.5 56.0

63.2 50.5 24.0 38.9 47.3

51.3 47.0 30.8 34.2

1987 1988 1989

1990 1991 1992 1993 1994

1995 1996 1997 1998 1999

2000 2001 2002 2003R 2004R

2005R 2006R 2007R 2008P

125.8 130.7 131.6 127.2

118.2 144.4 129.0 154.6 117.7

147.6 160.9 122.0 96.3 146.3

101.0 107.3 101.7 114.7 100.0

102.9 105.8 100.5

Non-Sugar Agriculture

44.0 53.0 45.2 56.0

31.4 27.6 29.5 31.0 35.1

18.0 20.7 21.2 23.1 27.8

19.5 18.6 17.0 15.2 16.9

18.4 17.1 17.5

Mining and Quarrying

SOURCE: Barbados Statistical Service

Sugar

Year

321.3 357.1 383.3 384.7

268.8 256.4 263.1 292.7 315.8

211.7 206.4 224.7 243.5 260.8

237.6 230.8 203.2 206.6 208.0

223.6 240.2 233.3

Manufacturing

171.1 197.3 202.4 214.4

140.7 137.2 137.1 143.6 144.5

110.2 117.1 117.0 127.4 128.1

91.7 100.1 105.5 106.7 102.4

80.7 84.8 91.6

Electricity, Gas & Water

329.1 356.3 346.4 365.8

249.1 222.0 226.4 232.1 259.7

151.8 164.3 203.1 223.6 241.8

193.9 161.9 112.6 120.9 133.5

144.3 170.3 196.7

Construction

890.8 893.8 963.8 961.2

757.1 697.9 708.9 738.6 806.4

542.8 584.8 625.7 702.2 748.0

589.1 575.5 498.9 506.8 515.0

529.9 547.8 596.2

Wholesale and Retail Trade

569.0 612.9 758.5 759.1

488.0 471.1 444.4 512.4 523.5

419.7 442.0 450.8 482.2 457.0

338.5 315.4 317.3 362.2 410.0

270.0 315.1 361.9

Tourism

327.6 330.2 343.1 356.3

386.3 442.8 296.7 289.2 318.5

319.6 343.6 340.6 385.9 421.3

244.5 254.2 252.5 264.6 282.3

225.4 226.6 227.8

Transport Storage & Communications

1004.0 1048.4 1075.4 1079.8

774.3 797.8 791.1 847.1 931.3

505.9 563.6 638.3 711.9 739.8

432.9 435.5 453.1 437.1 471.5

313.0 358.5 424.9

Finance & Business

321.9 383.5 411.2 366.0

199.2 211.2 212.5 273.9 312.1

131.8 146.1 157.8 179.8 189.9

109.3 109.7 107.7 110.6 122.0

97.3 99.2 106.2

General Services

GROSS DOMESTIC PRODUCT BY INDUSTRY OF ORIGIN 1987 -- 2008 (Current Prices)

APPENDIX 4

823.9 854.2 967.0 971.2

749.6 774.2 803.3 780.5 789.9

550.1 587.5 636.6 674.5 713.5

548.7 530.1 486.7 509.2 522.8

424.8 435.1 503.4

Government

4940.1 5264.4 5658.8 5675.9

4225.8 4233.1 4066.0 4334.7 4632.5

3160.0 3401.1 3606.9 4342.5 4470.3

2965.3 2893.7 2707.3 2801.4 2934.0

2498.9 2667.7 2909.6

GDP at Factor Cost

1031.1 1117.4 1244.9 1406.2

891.8 875.3 886.2 1055.1 1032.4

582.4 593.7 784.1 833.9 825.3

474.9 500.0 469.0 507.5 551.1

414.8 431.6 517.5

Add Net Indirect Taxes

5971.2 6381.8 6903.7 7082.1

5117.6 5108.4 4952.2 5389.3 5664.9

3742.4 3994.8 4391.0 5077.4 5295.6

3440.2 3393.8 3176.3 3308.9 3485.1

2913.7 3099.2 3427.1

GDP at Market Prices

18.2 19.3 20.6 20.7

15.8 18.8 15.0 15.9 16.9

12.0 12.9 13.6 14.7 15.5

11.5 11.1 10.3 10.5 11.1

9.8 10.4 11.3

Per Capita GDP at Factor Cost ( ‘000)

($ M)

Barbados Economic and Social Report 2008 Appendices

1231.1

Aug.

185.6 112.2 516.4 404.2 91.3

1080.9 968.8 750.8 750.8 0.0 186.7 1.1

1172.3

2000

2001

1631.4

Dec.

231.2 120.0 667.7 547.7 119.0

1533.7 1413.7 1136.8 1136.8 0.0 231.6 0.4

1652.7

Note: Figures for 2008 reflect information down to November

SOURCE: Central Bank of Barbados

943.7

May

April 826.7

137.9 66.6 668.9 602.3 74.1

Sinking Funds for Foreign Debt 94.4 Commercial Banks (net) 29.5 Foreign Assets 549.3 Foreign Liabilities (Short-term) 519.8 Other Public Bodies (R) 57.4

Peak Value During Year

679.4 612.8 440.3 452.3 12.0 138.8 0.9

568.2 538.7 413.6 425.6 12.0 94.8 0.4

Total Banking System (net) (R) Monetary Authorities (net) (R) Central Bank (net) Assets Liabilities Central Government Government Funds

753.5

625.6

1999

Total Foreign Assets/ Reserves (R)

1998

1808.7

Dec.

292.6 344.9 1060.5 715.6 116.9

1711.3 1366.4 1030.6 1030.6 0.0 293.2 0.6

1828.2

2002

2201.5

Dec.

355.8 583.8 1224.9 641.1 111.7

2087.1 1503.3 1104.7 1104.7 0.0 356.2 0.4

2198.8

2003

INTERNATIONAL RESERVES 1998 -- 2008

APPENDIX 5

2442.7

May

369.2 556.2 1267.1 710.9 165.0

1746.7 1190.5 774.0 774.0 0.0 369.5 0.3

1911.7

2004

1954.3

Mar.

358.2 371.9 1467.4 1095.5 172.0

1608.4 1236.5 833.4 833.4 0.0 358.3 0.1

1780.4

2005R

1910.0

Mar.

361.9 497.1 1717.1 1220.0 166.9

1691.2 1194.1 789.8 888.5 98.7 362.4 0.5

1858.1

2006R

2462.7

Dec.

415.7 699.7 3007.0 2307.3 215.0

2247.7 1548.0 1092.1 1244.9 152.8 416.1 0.4

2462.7

2007R

2709.3

Mar

450.7 498.6 2327.4 1828.8 252.2

1902.8 1404.2 914.2 1039.2 125.0 450.9 0.2

2155.0

2008P

($ M)

Barbados Economic and Social Report 2008 Appendices

A -- 5

A -- 6 12.5 13.0 10.3 11.9 15.7 25.3 24.5 20.0 14.1 13.6 11.1 14.3 9.0 7.8 10.5 13.0 15.6 17.9

1990 1991 1992 1993 1994

1995 1996 1997 1998 1999

2000 2001 2002 2003 2004 2005 2006R 2007R

315.1

235.7 215.5 209.4 201.5 211.7 280.0 304.1 326.9

178.0 201.2 200.7 219.4 235.2

131.9 135.5 130.6 140.8 122.4

75.0 94.7 123.9

CARICOM

SOURCE: Barbados Statistical Service

20.7

12.7 12.2 11.0

1987 1988 1989

2008P

Canada

Year

0.1

0.6 0.4 0.3 0.2 0.1 0.1 0.5 0.1

2.9 0.9 1.9 0.8 0.6

1.1 1.4 3.2 2.2 2.2

2.7 2.7 3.2

Japan

4.5

1.2 1.2 2.3 2.3 2.0 2.9 8.3 6.5

3.6 3.1 3.6 3.6 3.5

1.8 1.9 2.6 1.1 1.8

1.0 1.6 1.1

Germany

82.3

71.9 60.6 51.4 55.0 60.4 62.8 66.0 94.4

71.8 93.3 96.9 71.9 69.2

78.7 43.5 75.6 59.2 73.3

65.1 66.2 48.9

United Kingdom

187.4

83.3 73.5 63.3 67.3 81.3 91.9 171.2 170.2

68.7 74.2 80.7 74.6 84.4

51.9 53.4 62.3 65.0 70.5

67.6 75.6 72.8

United States of America

1.1

1.9 2.4 1.7 0.0 0.1 0.4 0.1 0.4

6.2 48.6 32.5 5.4 4.1

1.1 0.3 0.1 0.1 0.2

0.0 0.0 0.2

Venezuela

DIRECTION OF TRADE -- TOTAL EXPORTS 1987 -- 2008

APPENDIX 6

297.4

140.0 151.0 145.6 165.4 190.4 267.8 316.6 241.6

107.4 115.4 129.6 116.4 117.1

151.2 165.7 95.6 94.7 80.3

98.4 101.1 113.3

All Other Countries

908.6

545.7 516.3 483.0 499.5 556.5 718.9 882.4 949.8

463.9 561.2 565.9 506.2 527.6

430.1 414.7 380.3 375.0 366.4

322.5 354.2 374.4

Total Exports

($ M)

Barbados Economic and Social Report 2008 Appendices

81.2 82.3 101.6

80.9 84.0 58.0 57.4 69.6

78.1 85.4 78.3 84.5 92.4

96.5 80.3 74.8 84.8 107.8 114.5 120.2 118.6 181.4

1987 1988 1989

1990 1991 1992 1993 1994

1995 1996 1997 1998 1999

2000 2001 2002 2003 2004 2005 2006R 2007R 2008P

458.7 436.0 463.1 570.5 698.7 806.0 857.9 845.6 885.5

247.6 248.4 247.0 325.5 394.9

218.9 203.5 199.5 216.8 239.0

146.2 162.8 184.2

CARICOM

SOURCE: Barbados Statistical Service

Canada

Year

120.1 89.1 90.1 106.9 128.1 165.5 119.7 118.8 126.4

103.8 84.2 135.9 148.9 167.6

75.0 85.0 40.3 62.4 59.7

54.4 63.7 78.1

Japan

36.6 36.5 35.6 39.5 41.8 52.2 44.7 61.6 56.3

40.0 35.0 37.0 38.8 36.0

29.8 23.9 23.3 21.5 21.0

26.4 27.9 30.1

Germany

186.7 171.9 157.4 148.9 166.5 177.0 189.9 213.9 185.0

147.0 139.5 161.1 190.0 184.4

148.6 157.3 91.2 107.8 112.0

120.5 133.7 148.8

Kingdom

United

943.9 877.0 850.7 891.2 1027.7 1172.6 1205.0 1205.9 1274.4

572.5 629.1 823.7 830.0 886.0

468.0 494.1 377.3 416.5 479.5

333.5 401.8 469.3

America

United States of

DIRECTION OF TRADE -- TOTAL IMPORTS 1987 -- 2008

APPENDIX 7

13.9 8.8 9.0 6.1 8.3 11.1 8.4 2.6 2.3

62.1 75.1 60.8 18.7 15.1

56.5 56.7 43.7 42.1 38.8

36.5 40.3 56.2

Venezuela

455.7 437.7 460.8 542.7 647.0 710.0 712.3 798.2 781.7

291.5 370.6 447.2 407.4 439.7

330.2 293.1 215.2 229.4 209.7

237.5 251.5 286.0

Other

Countries

2312.1 2137.3 2141.5 2390.6 2825.9 3208.9 3258.1 3365.1 3493.0

1542.6 1667.3 1991.0 2043.8 2216.1

1407.9 1397.6 1048.5 1153.9 1229.3

1036.2 1164.0 1354.3

Total

Imports

($ M)

Barbados Economic and Social Report 2008 Appendices

A -- 7

Barbados Economic and Social Report 2008

Appendices

APPENDIX 8 VISIBLE TRADE BALANCE -- IMPORTS AND EXPORTS 1987 - 2008 ($ M) Year

Imports (CIF)

1987 1988 1989

1035.9 1163.9 1354.3

1990 1991 1992 1993 1994

Domestic Exports

Re-Exports

Total Exports

223.7 248.0 248.8

98.8 106.2 125.6

322.5 354.2 374.4

(713.4) (809.7) (979.9)

1407.9 1397.7 1048.5 1153.9 1229.3

253.9 244.6 269.1 282.3 267.6

176.2 170.1 111.1 91.7 98.8

430.1 414.7 380.2 374.0 366.4

(977.8) (983.0) (668.3) (779.9) (862.9)

1995 1996 1997 1998 1999

1541.8 1667.3 1991.0 2044.9 2216.1

332.3 429.0 421.0 380.2 395.7

131.6 132.8 144.9 126.6 132.5

463.9 561.3 565.9 506.8 528.2

(1077.9) (1106.0) (1425.1) (1538.1) (1687.9)

2000 2001 2002 2003 2004 2005 2006R 2007R 2008P

2312.1 2137.3 2141.5 2390.6 2825.9 3208.9 3258.1 3365.1 3493.0

380.3 350.2 333.1 329.4 341.7 421.1 491.7 513.5 526.3

165.4 166.0 149.9 170.1 209.6 297.8 390.8 436.4 382.3

545.7 516.3 483.0 499.5 551.3 718.9 882.4 949.8 908.6

(1766.4) (1621.0) (1658.5) (1891.1) (2274.6) (2490.0) (2375.6) (2415.3) (2584.4)

SOURCE: Barbados Statistical Service

A -- 8

Balance on Visible Trade

65.6 62.9 47.1

63.9 56.9 61.6 57.7 60.1

51.1 72.0 71.7 55.2 56.0

53.3 44.0 37.7 41.0 44.9 44.4 39.2 37.3 45.0

1987 1988 1989

1990 1991 1992 1993 1994

1995 1996 1997 1998 1999

2000 2001 2002 2003R 2004R 2005R 2006R 2007R 2008P

0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0

0.0 0.0 0.0 0.0 0.0

3.1 5.2 0.0 0.0 0.0

5.3 0.0 3.5

Molasses

SOURCE: Barbados Statistical Service

Sugar

Year

24.5 36.0 35.5 33.6 44.6 50.7 44.3 67.5 66.0

19.1 22.8 27.8 27.5 26.9

14.8 8.7 18.6 15.3 14.0

7.2 0.0 9.7

Rum

9.0 9.4 9.3 8.9 10.0 10.9 14.4 14.8 19.8

9.2 11.6 11.1 10.7 9.8

2.8 3.8 6.6 6.2 5.9

2.1 1.9 2.1

Lard & Margarine

51.2 53.2 52.0 36.8 39.0 50.0 42.3 53.4 59.2

45.2 93.9 75.9 56.3 50.8

22.8 24.7 31.0 32.1 29.5

8.9 13.7 17.4

Other Food & Beverages

44.7 38.1 29.0 29.7 30.0 36.7 39.8 27.6 28.3

49.5 54.1 51.9 50.9 56.2

31.6 32.8 44.0 50.3 52.4

52.1 44.8 41.7

Electrical Components

SELECTED DOMESTIC EXPORTS 1987 - 2008

APPENDIX 9

5.8 3.4 1.4 1.9 1.3 2.6 2.3 1.6 0.9

6.6 7.5 6.9 5.8 6.1

15.3 16.1 11.8 9.3 6.2

23.8 30.6 28.5

Clothing

43.4 38.6 42.1 41.9 42.4 56.1 60.2 74.6 66.8

52.2 54.8 56.6 51.2 52.2

40.2 41.2 42.0 42.2 41.1

21.9 0.0 34.2

Chemicals

148.4 140.0 126.2 135.6 134.6 169.6 248.9 322.0 240.3

99.4 111.8 119.1 122.6 137.7

59.4 55.2 53.5 69.2 58.4

36.8 49.0 64.6

Other Domestic Exports

380.3 350.2 333.1 329.4 341.7 421.0 491.7 513.5 526.3

332.3 428.5 421.0 380.2 395.7

253.9 244.6 269.1 282.3 267.6

223.7 248.0 248.8

Total Domestic Exports

($ M)

Barbados Economic and Social Report 2008 Appendices

A -- 9

A --10 394.8 423.9 468.6 462.6 474.0 408.9 454.4 503.6 600.9 640.4 765.7 825.9 873.7 881.3 842.7 847.1 915.4 1044.8 1216.3 1063.3 1146.9 1213.6

Year

1987 1988 1989

1990 1991 1992 1993 1994

1995 1996 1997 1998 1999

2000 2001 2002 2003 2004 2005 2006R 2007P 2008P

493.5 510.3 533.5 559.3 615.8 699.2 665.5 721.3 802.1

345.4 386.8 449.2 472.4 501.8

316.4 335.1 298.6 299.1 329.9

279.1 297.8 316.8

NonDurables

201.3 162.0 153.5 175.4 206.9 237.7 208.9 222.4 239.7

129.6 121.9 169.7 197.2 204.5

73.0 63.3 40.1 61.7 87.8

63.2 65.6 73.9

Durables

186.6 170.5 160.1 180.7 222.1 279.4 188.9 203.3 171.8

125.9 131.6 146.8 156.4 167.4

73.2 75.6 70.7 93.4 85.4

52.5 60.5 77.9

Other Manufactured Goods

SOURCE: Central Bank of Barbados Outlook Tables (February 12 , 2009) Central Bank of Barbados Economic and Financial Statistics (March 2009)

Total Consumer Goods

1265.4 1128.5 1144.6 1305.1 1571.9 1694.8 1804.0 1838.7 2185.5

801.2 894.1 1080.4 1106.0 1209.9

769.0 753.6 528.3 605.3 636.2

542.0 633.8 761.6

Total NonConsumer Goods

812.1 710.2 732.6 835.3 977.0 1094.2 1122.6 1213.1 1561.0

549.2 574.6 669.5 684.4 726.4

476.1 474.1 377.3 409.1 420.8

347.3 407.8 478.9

Intermediate Goods

RETAINED IMPORTS BY BROAD ECONOMIC CATEGORIES 1987 - 2008

APPENDIX 10

447.2 411.5 404.5 462.1 585.2 588.6 666.1 612.6 607.1

247.8 314.7 407.2 415.3 477.8

265.9 251.1 149.7 193.1 210.5

172.6 193.8 250.3

Capital Goods

6.2 6.8 7.5 7.7 9.3 12.0 15.3 13.0 17.4

16.1 4.7 3.9 6.3 5.8

27.0 28.5 1.3 0.4 3.2

22.1 32.2 32.4

Unclassified Goods

2146.7 1971.2 1991.7 2220.5 2616.3 2911.0 2867.3 2985.6 3399.1

1402.3 1534.5 1846.1 1931.9 2083.6

1231.6 1227.6 937.2 1062.4 1135.8

936.8 1057.7 1230.2

Total Retained Imports

($ M)

Barbados Economic and Social Report 2008 Appendices

1626.0 1562.0 63.9 0.0 0.0 (49.9)

265.8 261.3 4.5 315.7 248.5

(67.2)

Current Revenue Tax Non-Tax* Loan and Advances Grants Income

Current Surplus/Deficit

Capital Expenditure and Net Lending Capital Expenditure Net Lending

Gross Financing Requirements

Less: Amortization

Overall Fiscal Deficit/ Net Financing Requirements

SOURCE: Ministry of Finance * Includes Loans and Advances

1675.9 248.5 1427.4

Current Expenditure Amortization Other

1999/00

(93.9)

196.3

290.2

302.1 289.5 12.6

11.9

1717.3 1648.9 68.4 0.0 0.0

1705.4 196.3 1509.1

2000/01

(197.6)

226.9

424.5

346.8 333.9 12.8

(77.7)

1722.2 1644.1 77.6 0.0 0.0

1799.9 226.9 1573.0

2001/02

(281.2)

241.7

(522.9)

328.4 319.1 5.7

(198.0)

1716.2 1636.7 79.4 0.0 0.0

1914.2 241.7 1672.5

2002/03

(133.0)

320.0

(453.0)

253.7 253.0 0.7

(199.2)

1865.7 1794.6 71.1 0.0 0.0

2064.9 320.0 1744.9

2003/04

(145.0)

338.5

(483.5)

226.1 223.9 2.2

(257.4)

1897.4 1803.8 61.3 0.0 0.0

2154.8 338.5 1816.3

2004/05

CENTRAL GOVERNMENT OPERATIONS 1999/00 - 2008/09

APPENDIX 11

(78.5)

295.1

(373.6)

248.1 245.6 2.5

(125.5)

2143.1 2075.1 65.3 2.7 0.0

2268.5 295.1 1973.4

2005/06

(131.3)

419.4

(550.7)

257.0 254.9 2.1

(293.7)

2223.4 2155.3 65.6 2.2 0.0

2517.1 419.4 2097.7

2006/07R

(278.1)

463.0

(741.1)

238.1 238.1 0.0

(503.0)

2452.0 2354.9 93.1 0.0 4.0

2955.0 463.0 2492.0

2007/08R

(234.4)

470.1

(704.5)

185.2 184.0 1.2

(519.2)

2553.2 2441.8 103.9 0.0 7.5

3072.4 470.1 2602.3

2008/09P

($ M)

Barbados Economic and Social Report 2008 Appendices

A -- 11

A --12 63.9 0.0 0.0

Non-Tax Revenue (1)

Loans and Advances

Grant Income

SOURCE:

12.0

0.8

15.8

0.1

0.6

29.3

1717.3

0.0

69.5

62.9

14.1

135.4

750.1

93.7

591.6

2000/01

12.0

0.0

18.0

0.0

30.0

1722.2

0.0

78.0

60.0

14.4

146.3

749.4

102.5

571.4

2001/02

0.0

17.9

0.0

17.9

1716.2

0.0

79.4

45.7

12.0

160.1

718.4

95.8

604.7

2002/03

Ministry of Finance (1) Includes Loans and Advances. (2) Transport Levy included in Special Receipts from 1988/89.

11.1

Environmental Levy

17.5

Training Levy 0.0

0.0

Health Levy

Transport Levy (2)

0.0

28.6

Employment Levy

Total Levies:

Memorandum Items

1626.0

75.2

Special Receipts

TOTAL

13.3

134.6

Taxes on International Trade

Stamp Duties

727.8

98.2

512.9

Taxes on Goods and Services

Taxes on Property

Taxes on Income & Profits

1999/00

13.0

0.0

15.0

0.0

28.0

1865.7

0.0

71.1

46.1

15.6

194.2

835.2

106.1

596.3

2003/04

14.2

0.0

22.1

0.0

36.3

1897.4

0.0

61.2

52.2

18.9

193.0

837.9

112.9

621.3

2004/05R

16.0

0.0

20.3

0.0

36.3

2142.9

0.0

68.0

68.9

22.0

180.5

959.9

137.4

706.2

2005/06R

CURRENT REVENUE BY ECONOMIC CLASSIFICATION 1999/00 - 2008/09

APPENDIX 12

16.0

0.0

21.7

0.0

37.7

2223.3

0.0

68.1

59.3

26.9

173.8

939.3

151.2

804.7

2006/07R

13.6

0.0

22.9

0.0

36.5

2452.0

4.0

0.0

93.1

54.7

21.9

197.3

1053.8

102.9

924.3

2007/08R

37.7

0.0

26.5

0.0

64.2

2553.1

7.5

0.0

103.9

81.0

19.7

226.0

1096.8

133.5

884.7

2008/09P

($ M)

Barbados Economic and Social Report 2008 Appendices

591.3

Wages and Salaries

274.2

252.9

490.2

INTEREST

SUBSIDIES AND TRANSFERS

SOURCE: Ministry of Finance

1800.1

241.7

227.0

AMORTIZATION

TOTAL

211.3

199.9

GOODS AND SERVICES

1914.2

521.0

40.5

625.3

665.8

2064.9

672.0

274.3

320.0

195.9

39.1

563.6

602.7

2002/03 2003/04R

38.8

National Insurance Contributions

630.0

EMPLOYMENT EXPENSES

2001/02

2154.8

716.8

263.4

338.5

209.0

43.0

584.1

627.1

2004/05R

2001/02 - 2008/09

2272.3

782.1

298.9

295.1

228.2

47.1

620.9

668.0

2005/06R

2508.2

812.4

327.4

419.4

261.2

50.7

637.1

687.8

2006/07R

APPENDIX 13 CURRENT EXPENDITURE BY ECONOMIC CLASSIFICATION

2955.0

977.8

343.5

463.0

361.8

56.1

752.8

808.9

2007/08R

3072.4

1097.3

356.1

470.1

335.7

58.8

754.4

813.2

2008/09P

($ M)

Barbados Economic and Social Report 2008 Appendices

A -- 13

A --14 128.1 57.3 70.8

Foreign Interest Amortisation

30.7

16.8

9.5

160.3 61.0 99.3

338.9 189.7 149.2

499.2

26.9

13.1

7.3

128.9 84.6 44.3

334.2 163.0 171.2

463.2

2000/01

970.5 35.2 417.0 518.1 -0.2

2298.9 530.6 1768.3

3269.4

2000

30.9

17.0

10.1

163.0 101.6 61.4

377.4 198.0 179.4

540.5

2001/02

1343.9 29.0 431.9 841.8 27.7 13.5

2389.7 515.3 1874.4

3733.6

2001

24.5

25.9

6.2

156.4 93.6 62.9

259.5 153.7 105.8

416.0

2002/03

1292.1 450.2 35.4 796.3 10.0 0.2

2842.5 496.9 1985.6

3774.6

2002

48.3

24.3

9.7

264.5 110.1 154.4

629.0 323.7 305.3

893.5

2003/04

1334.8 16.5 493.3 788.0 22.9 14.1

2801.2 578.7 2222.5

4136.0

2003

Accountant General Central Bank of Barbados (*) Does not include Publicly Guaranteed Debt. Central Government Debt Service information for 2008/09 represent figures ending December 2008.

28.9

Central Government Debt Service as % Government Revenue

SOURCE:

17.2

Central Government Foreign Debt as % of GDP

8.3

322.7 161.6 161.1

Domestic Interest Amortisation

Foreign Debt Service as % of Exports of Goods and Services

450.8

1999/00

1998/99

CENTRAL GOVERNMENT DEBT SERVICE

753.8 28.8 382.8 320.0 -0.5

2038.3 501.9 1536.4

2792.1

1999

672.2 27.8 412.1 232.3 ---

2156.9 574.1 1582.8

Domestic Short-Term Long-Term

Foreign Debt Bilateral International Institutions Bonds Euro-Market Loans Other

2828.9

CENTRAL GOVERNMENT TOTAL DEBT (*)

1998

2004

32.4

23.7

6.4

178.9 101.0 77.9

427.1 167.4 259.7

606.0

2004/05

1336.2 8.0 509.8 787.5 23.0 7.7

2840.7 640.6 2200.1

4177.0

APPENDIX 14 NATIONAL DEBT - CENTRAL GOVERNMENT 1998 - 2008

28.3

31.7

8.5

163.0 95.0 68.0

423.1 189.5 234.5

586.7

2005/06

1542.4 19.6 527.4 976.2 15.5 3.6

3250.1 644.1 2605.9

4792.5

2005

25.4

23.6

7.1

179.7 94.3 85.5

394.1 191.5 202.6

573.8

2006/07

1606.0 9.5 497.0 1082.0 16.1 1.5

3103.9 498.3 2605.6

4709.9

2006R

29.6

20.0

6.7

175.8 110.1 65.7

549.3 249.4 299.9

725.1

2007/08R

1609.3 8.6 534.4 1051.4 14.9 0.0

4068.5 690.3 3378.2

5677.8

2007R

24.5

20.1

4.5

134.0 59.5 74.5

490.9 220.6 270.3

624.9

2008/09P

1517.2 7.2 489.4 1007.9 12.6 0.0

4517.9 657.8 3860.0

6035.2

2008P

($ M)

Barbados Economic and Social Report 2008 Appendices

124.6 42.7 200.3 245.7 412.9 436.9 598.7 642.5 568.2 679.4 1080.9 1535.3 1711.3 2087.1 1746.7 1607.7 1691.2 2247.7 1749.2 1940.4 2035.1 2045.2 1749.2 2494.9 2290.5 1980.1 1749.2 Central Bank of Barbados

1990 1991 1992 1993 1994

1995 1996 1997 1998 1999

2000 2001 2002 2003 2004 2005 2006 2007R 2008P

2007R Mar Jun Sep Dec

2008P Mar Jun Sep Dec

SOURCE:

1106.4 1336.6 1460.7 1345.0

1012.3 1101.4 1209.2 1345.0

439.3 239.9 846.5 1032.5 1170.2 1094.9 1063.5 1185.7 1345.0

543.1 643.3 680.8 738.1 551.3

498.0 525.2 619.1 634.7 515.2

254.4 291.2 262.5

253.2 330.2 233.1

1987 1988 1989

To Government (Net)

Net Foreign Assets

Period Ended

5040.6 5132.2 5266.0 5478.3

4756.7 4766.7 4874.7 5478.3

2613.9 2594.7 2757.2 2769.3 3287.7 4095.7 4627.1 4986.6 5478.3

1503.0 1585.7 1923.0 2245.3 2536.7

1168.4 1207.7 1185.0 1172.4 1322.2

920.4 1014.8 1120.3

To Private Sector

Domestic Credit

6147.0 6468.8 6726.7 6823.3

5769.1 5868.1 6083.9 6823.3

3200.1 3012.4 3603.7 3801.7 4457.9 5190.6 5690.6 6172.3 6823.3

2086.2 2279.9 2696.5 2983.3 3207.8

1817.9 1861.8 1927.3 1916.3 1990.1

1261.7 1401.7 1495.8

Total

3850.7 3694.6 3586.6 3672.6

3268.8 3337.2 3529.7 3672.6

1519.8 1585.1 2288.7 2416.8 2863.2 3187.5 3157.0 3802.9 3672.6

899.3 1036.7 1263.8 1317.6 1399.7

624.7 549.9 610.8 624.5 795.6

447.7 574.6 514.6

Money Supply

2422.1 2212.0 2058.6 2146.1

1917.8 2034.5 2284.9 2146.1

939.3 1060.6 962.2 896.1 1036.8 1548.0 1637.9 2345.3 2146.1

515.7 879.2 722.9 738.1 968.5

435.5 418.6 484.3 366.8 400.5

302.7 329.0 367.8

3511.4 3601.6 3634.2 3649.9

3098.2 3212.2 3313.4 3649.9

1898.7 2028.8 2160.0 2391.9 2626.4 2751.6 3024.5 3405.7 3649.9

1291.4 1425.9 1533.2 1689.6 1796.9

950.7 956.0 986.8 1126.4 1207.1

700.0 790.6 848.6

Quasi-Money Time Savings Deposits Deposits

Total Monetary Liabilities

APPENDIX 15 MONETARY SURVEY 1987 - 2008

5933.5 5813.6 5692.8 5796.0

5015.9 5246.7 5598.3 5796.0

2838.0 3089.5 3122.2 3288.0 3663.2 4299.6 4662.4 5751.0 5796.0

1807.0 2305.1 2256.2 2427.7 2765.5

1386.2 1374.6 1471.1 1493.3 1607.6

1002.7 1119.6 1216.4

Total

8394.6 8537.6 8416.5 8417.1

7448.5 7748.5 7933.4 8417.1

4033.2 4248.4 4793.5 5128.2 5923.0 6500.6 7100.9 8187.6 8417.1

2380.3 2844.2 3152.3 3333.2 3664.2

2010.9 1924.5 1989.8 2011.4 2239.1

1480.4 1694.2 1731.0

Total Monetary Liabilities

247.3 221.7 290.2 155.4

261.0 154.7 195.6 155.4

247.8 285.9 521.5 760.7 281.6 297.7 280.9 232.3 155.4

142.8 34.5 186.8 218.3 223.1

(27.9) 6.6 158.9 185.4 160.4

117.9 63.4 67.4

Other Items

($ M)

Barbados Economic and Social Report 2008 Appendices

A -- 15

Barbados Economic and Social Report 2008

Appendices

APPENDIX 16 COMMERCIAL BANKS - SELECTED BALANCE SHEET ITEMS 1987 - 2008 ($ M) DEPOSITS Loans and Advances

Total Assets/ Liabilities

1342.8 1525.7 1570.7

959.9 1047.6 1198.0

1781.3 1844.8 1923.1

950.7 956.0 986.9 1126.6 1231.6

1832.7 1761.3 1920.8 1940.8 2239.0

1247.1 1262.3 1217.8

2180.4 2160.1 2266.2

1456.8

2650.1

515.7 879.2 722.9 738.1 968.5

1328.9 1439.1 1541.6 1698.2 1801.2

2539.2 3153.2 3347.1 3515.6 3912.1

1533.1 1614.5 1978.3 2315.4 2612.1

3051.8 3722.9 4034.0 4311.5 4739.2

1246.4 1298.1 2003.3 2137.5 2465.5 2699.4 2670.3 3299.7 3122.8

939.3 1060.6 962.2 896.1 1036.8 1548.0 1637.9 2345.2 2146.1

1901.6 2038.9 2176.7 2460.2 2633.3 2758.4 3029.6 3411.3 3666.5

4087.3 4397.7 5142.1 5493.8 6135.7 7005.9 7337.8 9056.4 8934.9

2712.6 2732.5 2910.3 2867.0 3346.1 4081.8 4713.7 5097.1 5703.0

4911.7 5417.4 6267.1 6812.6 7302.8 8297.3 9069.3 11357.1 11801.4

2006 Mar Jun Sep Dec

2771.7 2554.6 2604.1 2670.3

1447.5 1544.4 1633.9 1637.9

2804.5 2929.9 2979.9 3029.6

7023.7 7028.8 7218.1 7337.8

4240.5 4382.3 4469.5 4713.7

8298.4 8196.5 8581.5 9069.3

2007R Mar Jun Sep Dec

2794.7 2849.9 3062.2 3299.7

1917.8 2034.5 2284.9 2345.2

3102.4 3218.5 3319.1 3411.3

7814.9 8102.9 8666.1 9056.4

4871.0 4857.5 4978.7 5097.1

9149.9 9510.6 10460.5 11357.1

2008P Mar Jun Sep Dec

3381.2 3235.3 3118.7 3122.3

2422.1 2212.0 2058.6 2146.1

3528.5 3619.0 3651.6 3666.5

9331.9 9066.3 8829.0 8934.9

5167.4 5281.0 5454.2 5703.0

11635.5 11424.9 11417.3 11801.4

Period Ended

Demand

Time

Savings

Total

1987 1988 1989

336.4 403.2 342.5

304.9 330.9 378.5

701.5 791.6 849.7

1990 1991 1992 1993 1994

446.5 386.7 449.6 447.4 606.9

435.5 418.6 484.3 366.8 400.5

1995 1996 1997 1998 1999

694.6 834.9 1082.6 1079.3 1142.4

2000 2001 2002 2003 2004 2005 2006 2007R 2008P

SOURCE: Central Bank of Barbados

A --16

0.1

221.0

Miscellaneous 2612.1

133.8

1083.4

202.0

SOURCE: Central Bank of Barbados

2315.5

887.3

Personal

TOTAL

200.3

Professional and Other Services

82.8

0.0

Government

181.9

Financial Institutions 103.7

87.8

Construction

23.9

72.6

32.8

Public Utilities

37.1

19.6

302.2

321.4

96.6

3.9

2.7

48.0

1999

67.4

21.6

Transport

Statutory Boards

23.1

260.9

Tourism

Entertainment

241.1

4.1

Mining and Quarrying

Distribution

3.3

Fisheries

113.4

47.3

Agriculture

Manufacturing

1998

SECTOR

2712.6

137.6

1086.7

174.0

126.2

92.3

0.0

233.5

15.9

43.4

35.8

328.6

275.7

88.0

5.6

2.6

66.7

2000

2732.5

127.2

1183.1

179.9

104.5

118.6

0.1

228.2

19.1

40.7

33.5

293.7

251.0

92.6

3.3

2.3

54.6

2001

2910.3

167.9

1184.3

175.7

158.1

158.4

0.0

227.6

12.0

34.1

29.8

336.0

289.0

86.1

3.2

2.3

45.7

2002

2867.0

90.6

1241.1

174.8

59.4

219.0

0.0

210.5

9.7

23.9

35.7

385.3

279.9

100.5

4.5

1.8

41.9

2003

3346.1

142.3

1456.6

198.5

112.1

281.2

0.0

264.7

8.5

27.1

36.5

361.8

321.7

98.6

1.8

2.4

32.3

2004R

4081.8

92.4

1806.4

308.5

151.4

270.4

20.0

316.1

6.6

26.2

39.7

517.5

368.8

111.2

2.8

2.1

41.6

2005

APPENDIX 17 COMMERCIAL BANKS CREDIT - SECTORAL DISTRIBUTION 1998 - 2008

4713.7

137.3

2162.0

304.5

161.2

345.8

33.8

363.5

4.5

33.9

42.4

522.4

413.4

134.5

2.9

2.6

48.7

2006

123.2

5703.0

5097.1

2634.5

480.9

294.6

466.0

35.7

425.8

34.6

46.5

64.1

499.1

434.1

124.5

5.0

2.8

44.5

2008P

104.3

2433.0

360.1

227.3

396.3

42.2

352.2

28.3

33.4

64.4

471.3

403.3

123.6

5.8

2.6

48.7

2007R

($ M)

Barbados Economic and Social Report 2008 Appendices

A -- 17

Barbados Economic and Social Report 2008

Appendices

APPENDIX 18 LONG TERM CREDIT FOR HOUSING Selected Institutions 1987 - 2008 ($ M)

Year

Commercial Banks

Credit Unions

Insurance Companies

Total

1987R

33.9

217.0

N/A

94.5

345.4

1988R

32.9

258.5

N/A

108.0

399.4

1989R

33.7

309.0

N/A

123.8

466.5

1990R

34.0

342.2

N/A

143.2

519.4

1991R

33.5

368.8

N/A

152.3

554.6

1992R

32.8

377.6

N/A

159.2

569.6

1993R

31.8

389.7

N/A

152.2

573.7

1994R

34.6

400.2

N/A

151.6

586.4

1995R

35.8

420.8

N/A

155.2

611.8

1996R

36.5

444.4

N/A

156.3

637.2

1997R

101.9

413.8

N/A

166.3

682.0

1998R

111.2

450.1

N/A

183.4

744.7

1999R

239.1

419.0

N/A

147.4

805.5

2000R

271.7

468.6

N/A

144.7

885.0

2001R

342.5

502.5

N/A

147.4

992.4

2002R

386.5

525.1

N/A

141.2

1052.8

2003R

461.2

539.5

145.3

138.9

1284.9

2004R

530.0

560.0

194.5

144.0

1428.5

2005R

659.9

586.2

258.8

135.2

1640.1

2006R

815.3

660.1

296.4

148.6

1920.4

2007R

1192.7

725.6

346.9

168.0

2433.2

2008P

1370.2

785.1

325.4

177.2

2657.9

SOURCE:

A --18

Trust & Mortgage Companies

Central Bank of Barbados Registrar of Cooperatives Office of the Supervisor of Insurance

Barbados Economic and Social Report 2008

Appendices

APPENDIX 19 SELECTED INTEREST RATES 1987 - 2008 (Percentages Per Annum) Deposits - Minimum Rates Period Ended

Treasury Bills

Three Months

Six Months

Prime Twelve Lending Months Savings Rate(1)

Barbados Bank Rate

U.S.A. Bank Rate

1987 1988 1989

4.99 4.71 5.82

3.00 3.25 6.00

3.25 3.50 6.25

3.50 3.75 6.50

3.00 4.00 6.00

8.25 9.00 11.00

8.00 8.00 13.50

5.80 6.50 7.00

1990 1991 1992 1993 1994

8.06 11.30 6.60 7.23 7.77

5.50 7.00 4.00 1.25 5.00

5.50 7.25 4.25 1.25 5.00

5.50 7.50 4.25 1.25 5.00

5.50 7.00 4.00 5.00 5.00

10.25 14.50 10.75 8.75 9.75

13.50 18.00 12.00 8.00 9.50

7.00 3.50 3.00 3.00 4.75

1995 1996 1997 1998 1999

8.27 5.61 4.91 5.70 6.05

5.00 5.00 4.00 4.00 5.00

9.75 8.75 8.75 8.75 10.00

12.50 12.50 9.00 9.00 10.00

5.25 5.00 5.00 4.50 5.00

2000 2001 2002 2003 2004 2005 2006 2007R 2008P

3.85 1.97 1.51 0.64 2.76 6.26 6.56 4.90 4.85

4.50 3.00 2.50 2.50 2.25 4.75 5.25 4.75 4.00

4.50 3.00 2.50 2.50 2.25 4.75 5.25 4.75 4.75

9.50 7.25 6.75 6.75 6.50 9.15 10.15 9.65 9.00

10.00 7.50 7.50 7.50 7.50 10.00 12.00 12.00 10.00

6.00 1.25 0.75 2.00 3.15 5.15 6.25 4.83 0.86

2006 Mar Jun Sep Dec

6.22 6.19 6.21 6.56

4.75 4.75 4.75 5.25

9.65 9.65 9.65 10.15

12.00 12.00 12.00 12.00

7.53 8.02 8.25 8.25

2007R Mar Jun Sep Dec

5.74 5.76 5.16 4.90

5.25 5.25 5.25 4.75

9.95 9.95 9.80 9.65

12.00 12.00 12.00 12.00

8.25 8.25 7.75 7.25

2008P Mar Jun Sep Dec

4.70 4.16 3.48 4.81

4.75 4.50 4.50 4.00

9.65 9.40 9.40 9.00

12.00 12.00 12.00 10.00

3.04 2.25 2.25 0.86

SOURCE: Central Bank of Barbados (1) - Minimum Rate

A -- 19

A -- 20

199.7 200.2 200.5 200.7

201.4 203.2 204.6 205.8 207.5

208.8 209.4 210.1 210.6

211.0 211.6 212.1 212.7

211.6 211.7 212.1 212.4

212.5 212.6 212.7 213.0

1987 1988 1989 1990 1991

1992 1993 1994 1995

1996 1997 1998 1999 2000

2001 2002 2003 2004

2005 2006 2007R 2008P

2007P Q1 Q2 Q3 Q4

2008P Q1 Q2 Q3 Q4

73.2 75.0 73.6 73.1

73.9 76.1 74.7 73.3

75.0 73.4 74.5 73.7

74.9 74.1 74.6 75.0

70.2 70.9 71.7 72.8 73.4

68.4 68.6 68.8 69.1

63.0 62.6 63.4 64.3 68.2

Male

70.6 71.0 70.2 68.6

69.9 68.9 70.0 68.0

71.8 70.1 69.2 70.1

70.3 69.2 70.9 71.3

65.4 66.9 66.9 66.8 68.9

63.8 64.2 66.3 67.6

56.3 58.8 58.6 59.6 61.3

Female

Labour Force (‘000)

SOURCE: Barbados Statistical Service

Total

179.3 179.9 180.7 184.1 198.8

YEAR

Adult Population (‘000) Total

143.8 146.0 143.8 141.6

143.7 145.0 144.7 141.3

146.8 143.5 143.7 143.8

145.2 143.4 145.5 146.3

135.6 137.8 138.5 139.6 142.3

132.1 132.8 135.1 136.8

119.3 121.4 122.0 123.9 129.5

68.4 69.2 68.8 68.3

68.9 70.7 70.6 68.5

69.0 67.8 69.7 68.7

68.9 67.7 67.4 68.3

62.2 62.8 65.7 67.2 68.0

54.6 54.0 56.7 57.7

54.6 54.9 56.3 57.8 59.2

Male

APPENDIX 20

64.0 64.3 63.0 62.6

63.6 62.6 63.8 63.3

63.6 63.2 63.4 63.4

61.9 60.9 62.0 63.8

53.6 54.9 56.0 58.0 61.0

47.1 46.5 48.8 52.1

43.3 45.3 46.9 47.5 47.9

Female

No of Persons Employed (‘000)

132.4 133.5 131.8 130.9

132.6 133.3 134.5 131.8

132.6 131.0 133.1 132.1

130.9 128.6 129.5 132.0

115.8 117.7 121.7 125.2 129.0

101.7 95.4 105.5 109.9

97.9 100.2 103.2 105.3 107.1

Total

Male

6.5 7.8 6.6 6.5

6.7 7.1 5.4 6.6

8.0 7.7 6.4 6.9

8.0 8.7 9.6 9.0

11.4 11.5 8.3 7.7 7.5

20.1 21.2 17.6 16.5

13.3 12.3 11.1 10.1 13.2

9.4 9.4 10.2 8.8

8.9 9.1 8.9 6.9

11.4 9.8 8.5 9.5

11.9 12.1 12.6 10.6

18.0 17.8 16.3 13.2 11.4

26.1 27.6 26.4 22.9

23.1 22.9 19.8 20.3 21.9

Female

Unemployment Rate (%)

LABOUR FORCE AND EMPLOYMENT BY SEX 1987 - 2008 (Average for the year)

Total

7.9 8.6 8.4 7.6

7.8 8.1 7.1 6.7

9.7 8.7 7.4 8.1

9.9 10.3 11.0 9.8

14.6 14.6 12.2 10.3 9.4

23.0 24.3 21.9 19.7

17.9 17.4 15.3 15.0 17.3

72.8 74.6 73.2 72.5

73.9 75.9 74.5 73.0

75.2 73.4 74.3 73.3

75.9 74.8 75.1 75.3

73.7 73.8 74.1 74.8 74.9

74.1 74.1 74.2 74.5

76.0 75.2 75.7 75.5 74.2

Male

63.0 63.3 62.6 61.1

62.6 61.7 62.6 60.7

64.5 62.8 61.9 62.5

63.8 62.7 64.0 64.2

61.6 62.4 62.0 61.6 63.0

59.4 59.8 61.5 62.7

58.4 60.8 60.2 60.3 57.4

Female

Participation Rate (%)

67.7 68.7 67.6 66.5

67.9 68.4 68.2 66.5

69.6 67.8 67.8 67.6

69.5 68.5 69.2 69.5

67.3 67.8 67.7 67.8 68.6

66.2 66.3 67.4 68.2

66.5 67.4 67.4 67.4 65.2

Total

Barbados Economic and Social Report 2008 Appendices

Barbados Economic and Social Report 2008

Appendices

APPENDIX 21 RETAIL PRICE INDEX - ANNUAL AVERAGES 1987 - 2008 Alcoholic

Household

Beverages Year Ended

Fuel

and Food

Tobacco

Housing

Operations

Medical

Education

Clothing

and

Recreation

and

Personal

Trans-

and

All

Light

Supplies

Footwear

Care

portation

Miscellaneous

Items

Weights March 1980= 100

432

131

1000

May 1994=100

394

168

105

1000

July 2001=100

3379

373

1227

634

1014

344

1703

585

741

10000

1987 1988 1989 1990 1991

153.9 163.9 178.7 186.0 194.9

174.1 183.8 191.6 192.5 208.4

208.7 214.0 225.0 228.6 253.8

114.2 112.1 116.3 121.3 121.6

119.3 124.7 126.4 127.9 133.2

120.9 125.2 128.5 128.2 131.7

169.3 182.1 193.2 204.3 211.5

170.2 180.6 186.1 195.5 229.5

148.5 147.2 150.8 155.0 156.8

156.8 164.2 174.6 179.9 191.2

1992 1993 1994 1994 1995

195.4 195.3 195.9 103.1 106.1

223.2 220.9 224.1 99.0 101.2

296.7 296.9 294.8 99.7 103.7

124.9 128.8 125.9 101.0 104.0

147.3 148.5 147.3 99.8 98.0

135.8 137.6 136.3 100.0 97.6

233.3 253.0 256.5 99.4 101.0

260.5 274.4 268.9 101.2 99.3

158.0 163.2 166.9 99.7 100.3

202.8 205.1 205.3 101.1 103.0

1996 1997 1998 1999 2000

110.2 125.1 119.7 122.7 125.8

104.2 112.4 113.8 114.8 116.0

105.7 107.0 110.6 113.4 116.5

103.7 112.9 109.8 106.8 122.5

98.7 103.6 102.0 101.0 95.1

96.8 91.4 90.4 93.6 91.1

100.5 101.7 119.7 101.9 112.1

103.6 108.6 108.9 109.9 106.6

102.7 114.4 119.6 122.3 126.6

105.5 113.6 112.2 113.9 116.7

2001 2002 2003 2004 2005

97.6 99.3 102.1 106.6 114.2

99.7 100.2 97.8 96.6 98.4

99.7 101.1 100.7 100.4 110.9

98.7 96.9 100.6 95.8 102.9

99.9 94.8 92.6 91.3 91.8

99.2 94.2 91.4 91.7 90.1

99.2 97.4 100.5 101.7 110.0

100.4 105.0 109.0 110.7 114.4

100.1 99.6 101.0 102.3 104.7

98.6 98.8 100.4 101.8 108.0

2006 2007R 2008P

123.2 131.9 149.7

102.2 106.9 126.7

121.7 126.8 128.5

111.9 115.2 124.4

99.3 104.7 110.1

83.8 83.2 86.2

118.1 114.7 133.1

120.6 127.8 120.6

112.2 116.8 120.1

115.9 120.6 130.3

2007P Q1 Q2 Q3 Q4

127.7 127.8 133.2 138.9

105.7 107.4 107.8 106.7

127.3 127.4 126.6 119.3

108.0 115.2 117.2 120.5

101.9 103.6 106.3 106.9

83.6 83.4 83.6 82.0

114.6 114.9 114.8 114.5

126.0 127.2 128.3 129.7

114.6 115.5 117.8 119.3

118.2 119.1 121.4 123.6

2008P Q1 Q2 Q3 Q4

138.5 143.8 155.4 161.2

111.3 116.9 135.8 142.9

126.3 129.5 129.6 128.9

119.2 130.7 130.7 117.0

107.6 108.0 111.5 113.5

85.7 86.7 84.7 87.5

129.7 131.0 134.9 136.9

114.7 125.0 127.4 115.2

119.8 120.6 120.4 119.6

123.9 129.0 134.5 134.0

SOURCE: Barbados Statistical Service With effect from June 1995 the Statistical Service ceased publication of the index of Retail Prices with the March 1980 base. This has been replaced with a new index based on May 1994. Both weights are relevant to each base period and are provided for easy reference. Similarly, from July 01, 2001 the base period and weights were re-adjusted.

A -- 21

A -- 22 53.2 18.5

1999R

590.2 45.6 2,356.4 12,296.9 16.0 1,309.9 7,630.5

847.5 246.9 1,015.2 1,734.6 991.3 551.0 184.2 341.0 214.5 214.2 383.9 901.5

329.4 244.6 2,709.8 2,205.0 687.1 70.8

Ministry of Agriculture and Rural Development * Chicken and Turkey

562.5 51.1 2,735.3 11,737.5 13.8 972.4 9,100.0

282.4 49.3 442.0 553.4 565.8 209.1 142.7 320.5 184.9 323.6 318.7 418.8

194.4 21.9 740.6 653.4 421.3 10.1

48.0 38.1

1998

751.7 45.7 1,922.0 12,188.5 13.9 1,607.6 7,929.7

895.8 160.3 780.8 1,025.3 699.7 832.2 217.4 566.8 316.7 254.1 519.8 653.5

489.5 178.0 735.0 306.0 141.8 127.6

58.4 11.6

2000

411.6 31.5 1,799.4 11,382.7 14.6 1,473.3 8,140.1

1,023.0 218.4 664.0 1,346.0 678.9 n.a. 212.8 420.0 296.4 180.0 462.3 663.4

342.0 197.1 2,898.0 1,818.0 54.0 52.8

49.8 9.0

2001

505.3 155.1 640.0 1,011.5 2,018.1 278.9 342.8 1,466.1 639.9 1,264.2 466.3 1,233.7

411.6 44.1 2,609.8 1,233.7 338.2 62.5

36.3 18.7

2003R

362.3 345.6 73.3 90.1 1,409.9 1,755.9 11,036.2 12,316.4 54.2 50.3 1,603.6 1,619.6 7,426.5 7,016.6

393.8 75.8 501.2 800.2 1,701.7 155.5 281.4 1,288.7 610.4 1,107.7 265.0 916.8

397.4 47.6 1,467.5 349.2 311.1 30.0

44.8 26.9

2002

244.5 97.3 2,064.4 13,521.3 13.9 1,928.0 6,620.8

243.6 218.4 432.3 826.8 1,361.9 316.5 375.5 569.7 323.1 548.5 291.3 837.4

316.7 115.4 1,913.0 603.4 550.8 28.2

34.4 22.5

2004R

173.3 78.5 2,308.1 15,022.3 8.7 1,384.9 6,256.4

343.0 98.9 405.4 467.2 1,388.1 285.3 379.5 495.0 114.1 574.9 204.3 987.3

198.6 174.5 2,083.9 817.5 346.5 22.5

38.2 29.4

2005

252.0 109.8 253.5 305.4 1,449.9 417.5 477.4 658.1 114.2 419.5 159.5 1,224.2

448.1 151.4 1,334.6 646.5 287.3 9.3

34.7 19.2

2007R

219.1 38.6 622.6 382.5 1,157.3 190.6 237.1 593.6 163.6 351.3 344.6 1,002.7

621.6 49.0 1,240.8 372.8 201.9 31.6

31.6 26.0

2008

169.6 136.1 144.4 79.0 72.4 85.1 2,636.9 2,502.0 2,636.8 13,571.2 14,934.0 14,388.0 12.6 6.3 8.3 1,986.6 2,305.0 1,902.5 5,569.9 6,762.3 6,694.4

370.7 92.4 641.9 317.7 1,324.2 438.9 309.6 525.2 136.5 477.5 120.9 1,040.6

374.7 156.8 2,200.9 793.8 444.2 21.3

33.7 15.5

2006

6.1 17.5 5.4 (3.7) 31.7 (17.5) (1.0)

(13.1) (64.8) 145.6 25.2 (20.2) (54.4) (50.3) (9.8) 43.3 (16.3) 116.0 (18.1)

38.7 (67.6) (7.0) (42.3) (29.7) 239.8

(9.0) 35.4

% Change over 2007

NB.: Estimates for the years 2002 and 2003 were derived using a new methodology. Consequently, the data for these years is not directly comparable with that of previous years.

SOURCE:

Beef Mutton Pork Poultry* Veal Eggs Milk

Livestock and Dairy Products(‘000 kgs)

Beans (string) Beets Cabbage Carrots Cucumbers Lettuce Melon Okra Pepper(Hot) Pepper(Sweet) Pumpkins Tomatoes

Vegetable Production(‘000 kgs)

Cassava Eddoe Sweet Potatoes Yams Onions Peanuts

Root Crop Production(‘000 kgs)

Sugar(‘000 tonnes) Cotton(‘000 kgs)

Export Crops

Commodities

APPENDIX 22 PRODUCTION OF SELECTED AGRICULTURAL COMMODITIES 1998 - 2008

Barbados Economic and Social Report 2008 Appendices

12.8 11.5 11.1 10.5 10.3 9.2 7.9 7.8 7.5 8.4 8.9 8.4 8.5 8.6 9.2 8.0 7.4 7.0 7.1 6.7 6.3 5.9

1987 1988 1989 1990 1991

1992 1993 1994 1995

1996 1997 1998 1999 2000

2001 2002 2003 2004 2005 2006 2007R 2008

45.5 52.6 49.4 51.7 62.7 52.0 56.1 52.7

63.3 63.8 53.4 61.2 62.3

57.2 55.9 56.3 47.6

54.0 60.6 50.4 57.8 57.2

(tonnes)

419.5 417.9 364.5 361.2 442.4 348.3 353.5 310.7

534.9 570.9 448.7 521.9 537.6

528.0 441.0 439.0 357.0

689.0 698.8 560.0 606.0 587.0

Canes Milled (‘000 t)

49.8 44.8 36.3 34.4 38.2 33.7 34.7 31.6

59.1 64.6 48.0 53.2 58.4

54.0 48.5 51.9 38.5

83.4 80.3 66.3 69.3 65.7

Sugar Produced (‘000 t)*

8.4 9.3 10.0 10.5 11.6 10.3 10.2 9.8

9.2 9.0 9.4 9.8 9.2

9.8 9.1 8.5 9.3

8.6 8.7 8.5 8.7 8.9

Tonnes Cane / Sugar

5.4 5.6 4.9 4.9 5.4 5.0 5.5 5.4

7.0 7.2 5.7 6.3 6.8

5.9 6.1 6.7 5.2

6.5 7.0 6.0 6.6 6.4

Tonnes Sugar per ha

Production

47.8 45.3 48.8 51.9 55.7 47.0 30.8 34.2

73.4 76.6 61.0 54.3 57.3

65.6 57.5 60.3 52.8

78.2 77.2 60.8 71.9 69.0

Sugar Value ($ M)*

SOURCE: Barbados Statistical Service/Barbados Agricultural Management Company *Made up of Sugar, Molasses and Vacuum Pan

(‘000 ha)

Year

Canes Reaped Per hectare

APPENDIX 23 SUGAR STATISTICS 1987 - 2008

1.2 0.6 1.1 1.1 1.2 0.9 0.6 0.6

1.9 1.9 1.4 1.4 1.5

1.9 1.7 1.7 1.6

2.7 2.9 2.1 2.5 1.9

At factor cost (%GDP)

48.9 41.1 33.6 32.9 33.8 32.4 32.8 27.8

55.7 57.8 46.7 50.5 54.8

52.3 48.4 50.3 38.6

70.2 67.9 51.8 56.5 52.6

Tonnes (‘000)*

964.0 982.4 1,200.1 1,332.5 1,356.7 1,378.1 1,413.0 1,622.6

1,312.2 1,248.9 1,211.0 1,132.0 992.0

1,276.2 1,249.0 1,181.8 1,362.0

1,040.1 1,085.5 1,004.0 1,183.2 1,181.1

Export Price/t

47.2 40.4 41.5 44.9 45.9 44.6 46.3 45.1

73.1 73.0 56.6 57.2 54.1

66.7 56.8 59.5 52.5

71.2 67.2 52.0 66.9 62.2

Export Earnings ($M)

Sugar Exports

1,549.0 1,796.4 2,071.2 2,273.4 2,185.8 2,493.5 2,641.2 3,043.6

1,333.0 1,397.2 1,545.3 1,530.0 1,366.2

n.a. n.a. 1,345.0 1,806.0

1,327.8 1,360.6 1,548.9 1,561.8 1,637.0

Production Cost/t

Barbados Economic and Social Report 2008 Appendices

A -- 23

A -- 24

1000

104.7 111.1 115.0 119.4 116.4

108.7 105.7 111.5 119.9 120.0

124.8 134.3 135.3 133.2

124.9 125.5 124.6 127.0 137.8 95.3 95.0 93.4

Year

Weights

1987 1988 1989 1990 1991

1992 1993 1994 1995 1996

1997 1998 1999 2000

2001 2002 2003 2004 2005 2006 2007R 2008P 151.3 142.7 131.4 140.3 159.7 165.5 155.7 148.5

128.9 175.6 204.5 175.9

119.8 119.8 123.5 124.1 124.2

151.0 141.3 132.9 136.7 130.4

Mining And Quarrying

238.8 242.8 249.3 255.2 137.7 149.2 152.9 151.9

201.0 218.8 230.5 230.4

167.3 168.1 174.6 186.5 193.6

142.7 154.9 159.3 161.1 165.1

177

Electricity and Gas

109.5 110.1 109.1 110.7 83.3 81.1 80.1 78.6

116.2 121.5 119.5 118.8

100.9 97.3 103.1 111.6 111.7

97.2 103.9 108.6 113.3 109.7

797

Total Manufacturing

139.3 148.4 145.7 141.3 116.7 116.4 117.8 115.3

144.9 153.2 144.7 143.8

119.2 119.7 123.3 128.8 135.8

115.6 109.3 106.8 115.6 125.3

148

Food

SOURCE: Barbados Statistical Service * Refinery closed in January 1998 - all products imported

TotalAll Industries

APPENDIX 24

154.8 147.9 151.6 160.0 93.6 73.9 76.9 84.3

143.6 159.7 167.8 158.5

117.1 130.2 141.1 148.1 138.1

98.4 101.7 104.6 121.6 122.1

113

Beverages and Tobacco

6.3 4.7 4.4 4.5 11.3 22.2 22.1 12.0

13.5 9.9 9.3 10.0

30.4 25.6 15.6 14.3 13.0

86.9 90.6 71.4 58.1 46.5

Wearing Apparel

16.6 16.5 16.5 16.5 198.5 169.1 158.4 166.7

47.8 47.6 19.7 17.2

100.6 40.4 47.3 40.8 51.9

119.7 149.3 187.7 209.8 133.7

Wooden Furniture

INDEX OF INDUSTRIAL PRODUCTION 1987 - 2008 (Average 1994 = 100)

78.2 75.1 72.3 91.4 133.0 118.4 118.2 118.5

118.0 104.8 104.2 83.4

80.2 77.0 72.5 99.5 100.6

70.3 89.5 109.0 106.0 101.9

Chemicals

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

152.4 16.5* 0.0* 0.0

113.0 124.6 127.8 133.1 136.0

115.4 122.6 129.6 138.9 132.1

214

Petroleum* Products

190.4 173.8 159.1 175.6 316.7 320.6 313.0 292.4

140.6 179.4 203.6 203.2

90.2 90.7 118.1 125.5 125.4

129.5 140.1 150.7 133.8 129.0

NonMetallic Mineral Products

31.2 30.5 26.7 29.5 43.7 45.0 33.6 33.9

58.7 49.7 45.9 44.8

71.5 56.9 52.3 56.8 60.5

44.6 46.8 51.2 55.6 49.5

Electronic Components

176.3 179.5 180.5 178.7 102.4 108.6 106.1 101.2

168.6 189.1 187.2 193.8

137.4 135.0 152.5 169.0 165.9

110.9 125.6 140.5 149.1 149.7

170

Other Manufacturing

Barbados Economic and Social Report 2008 Appendices

11.8 11.9 9.8 5.8 11.8

13.0 14.0 14.5 13.9 15.2

15.5 14.8 15.5 15.0

10.3 11.8 16.0 12.9 12.7 13.5 13.4

Year

1988 1989 1990 1991 1992

1993 1994 1995 1996 1997

1998 1999 2000 2001

2002 2003 2004 2005 2006 2007R 2008P

1,295.6 1,465.1 1,628.8 1,770.5 n.a n.a -

1,405.7 1,332.5 1,422.6 1,373.5

1,055.9 1,196.0 1,223.6 1,288.6 1,314.4

918.5 1,055.6 987.0 919.5 925.0

Total Expenditure ($M)

SOURCE: Barbados Statistical Service * GDP at Factor Cost R = Revised P = Provisional

*Share in GDP (%)

6.7 6.8 6.8 7.4 n.a. n.a. n.a

5.9 7.6 7.3 7.2

7.0 7.1 7.6 6.9 6.6

6.7 7.1 6.8 6.9 6.9

Average Length of Stay (Nights)

44.1 49.8 50.4 55.2 n.a. n.a. n.a

52.7 57.8 60.4 51.5

51.3 56.4 56.7 59.5 62.4

60.0 62.7 56.3 48.2 49.1

Hotel Bed Occupancy Rate (%)

13,050 10,822 11,237 n.a. n.a. n.a. n.a

11,661 11,006 12,240 13,176

11,554 11,495 10,229 11,432 10,483

13,700 13,726 13,767 11,674 11,803

No. of Beds

42.5 49.9 49.7 53.8 n.a. n.a. n.a

52.5 55.9 56.9 53.0

52.9 57.4 59.2 60.6 63.2

63.9 64.3 57.5 50.5 46.3

Hotel Room Occupancy Rate (%)

SELECTED INDICATORS IN THE TOURISM INDUSTRY 1988 - 2008

APPENDIX 25

497,899 531,211 551,427 547,098 562,541 572,937 567,667

512,397 514,614 545,027 544,696

395,979 425,630 442,107 447,083 472,290

451,485 461,259 432,092 394,222 385,472

Stay-over Visitors

Arrivals

523,252 559,119 721,270 563,588 539,092 616,354 597,523

506,610 466,280 533,278 527,597

428,611 459,503 484,670 509,975 517,888

291,053 337,100 362,611 372,140 399,702

Cruise Passengers

Barbados Economic and Social Report 2008 Appendices

A -- 25

A -- 26

170,773 154,269 143,295 119,069

110,685 112,733 109,092 111,983 111,731

108,095 106,300 104,953 112,153 106,629

123,429 129,326 129,664 131,005 130,757 133,519 132,012

1988 1989 1990 1991

1992 1993 1994 1995 1996

1997 1998 1999 2000 2001

2002 2003 2004 2005 2006 2007R 2008

46,754 49,641 50,032 47,690 49,197 52,981 57,334

58,824 59,946 57,333 59,957 52,381

49,999 49,190 52,286 53,373 54,928

65,667 65,564 57,841 46,287

Canada

192,606 202,564 213,947 202,765 211,520 233,575 225,464

155,986 186,690 202,772 226,787 217,466

88,759 100,071 123,455 126,621 139,588

101,231 118,122 94,890 88,166

United Kingdom

SOURCE: Barbados Statistical Service * West Germany prior to 1991 Other -- now includes arrivals from Venezuela

U.S.A.

Year

5,931 7,612 6,970 6,995 7,478 5,549 6,101

18,900 12,109 9,553 7,850 6,474

19,337 28,920 31,524 28,372 25,867

11,684 10,119 12,680 20,274

Germany*

19,397 21,914 23,060 19,857 21,922 21,509 20,520

44,797 52,936 31,668 26,138 22,185

42,941 31,958 35,602 40,977 35,505

22,051 32,416 40,234 37,326

Other Europe

25,559 27,530 26,492 30,889 34,480 30,404 28,444

18,314 19,785 25,005 23,215 21,010

15,946 21,597 22,138 22,146 15,786

22,372 18,660 18,350 16,681

Trinidad & Tobago

64,118 69,279 77,845 83,886 82,496 68,979 72,185

45,267 50,573 61,122 64,209 59,075

36,885 36,460 35,799 40,990 40,966

41,927 44,180 43,948 41,307

Other CARICOM

APPENDIX 26 TOURIST ARRIVALS BY COUNTRY OF RESIDENCE (Stay Overs) 1988 - 2008

20,105 23,345 23,492 24,447 24,691 36,421 26,813

22,107 24,058 22,208 24,387 21,858

20,918 21,597 22,138 22,146 22,712

15,822 17,929 20,854 25,112

Other Countries

497,899 531,211 551,502 547,534 562,541 572,937 568,873

472,290 512,397 514,614 545,027 507,078

385,472 395,979 425,630 442,107 447,083

451,485 461,259 432,092 394,222

Total

Barbados Economic and Social Report 2008 Appendices

Barbados Economic and Social Report 2008

Appendices

APPENDIX 27 DOMESTIC CRUDE OIL AND GAS PRODUCTION 1987 - 2008

Year

Domestic Crude Oil (Barrels)

% of Total Crude Oil Supply

Gas Production (MCM)

1987R 1988R 1989R 1990R

496,800 427,100 389,289 454,424

36.5 30.0 25.0 31.0

30,098 35,293 31,490 32,983

1991R 1992R 1993R 1994R 1995R 1996R

454,514 478,804 454,664 453,427 460,300 362,915

37.7 39.5 43.5 34.4 27.8 23.9

30,309 30,258 27,964 28,953 29,296 28,911

1997 1998R 1999R 2000R 2001 2002R

327,806 585,457 707,564 559,675 463,699 390,617

20.2 0.0* 0.0* 0.0* 0.0* 0.0*

28,331 37,426 49,918 37,918 34,936 29,079

2003 2004 2005 2006R 2007 2008

370,909 377,655 348,728 339,692 317,010 289,692

0.0* 0.0* 0.0* 0.0* 0.0* 0.0*

22,880 20,300 23,996 23,407 20,928 20,602

SOURCE: Barbados National Oil Company Limited * - Refinery closed in January 1998

A -- 27

A -- 28 4.8 4.5 4.2 3.4 2.4 1.5

12.0 10.6 10.1 10.7 9.9

10.9 10.0 9.2 8.1

10.4

2.4

237.7

29 34 39 44 49

50 - 54 55 - 59 60 - 64 65 - 69 70 - 74 75 - 79 80 + Not Stated

TOTAL

112.0

5.7 4.8 4.3 4.5 4.3

125.7

0.9

8.0

6.1 5.5 5.0 4.7

6.3 5.8 5.8 6.2 5.6

12.7 15.5 15.2 12.9 9.6

Female

247.5

1.8

17.4

9.8 8.7 9.0 9.1

20.9 16.1 11.0 9.9 9.0

21.2 25.5 25.8 27.8 25.7

Both Sexes

118.2

1.0

6.6

4.2 3.8 3.9 4.0

10.2 7.9 5.1 4.5 3.9

10.7 12.8 12.9 14.0 12.7

Male

1980

130.3

0.8

10.8

5.6 4.9 5.1 5.1

10.7 8.2 5.9 5.4 5.1

10.5 12.7 12.9 13.8 13.0

Female

NOTE:

260.8

10.0 8.8 9.0 8.5 8.2 6.5 7.7

24.1 23.1 19.4 15.5 11.0

19.6 21.4 21.7 23.8 22.5

Both Sexes

1990

124.7

4.6 3.9 3.9 3.7 3.5 2.7 2.7

11.8 11.1 9.3 7.6 5.1

9.9 10.7 11.0 12.0 11.3

Male

Figures for 1970 and 1980 include institutional population for which ages are not available. Revised figures are based on the 1990 Census Data.

SOURCE: Barbados Statistical Service 1970, 1980, 1990 and 2000 Census Data. Error in total population figure due to rounding.

25 30 35 40 45

13.0 15.7 15.0 12.8 9.9

25.7 31.2 30.2 25.7 19.5

0-4 5-9 10 - 14 15 - 19 20 - 24

Male

Both Sexes

Age Group

1970

APPENDIX 28 POPULATION BY SEX AND AGE GROUP (Census Years 1970, 1980, 1990 and 2000)

136.0

5.5 4.9 5.1 4.8 4.7 3.8 5.0

12.2 12.0 12.1 7.9 5.9

9.7 10.6 10.7 11.8 11.2

Female

268.8

14.6 10.2 9.6 8.9 8.3 6.2 9.1

21.3 21.1 22.8 21.5 17.9

18.4 19.8 19.7 20.3 19.2

Both Sexes

129.2

7.0 4.7 4.3 3.9 3.5 2.5 3.2

10.6 10.3 11.0 10.3 8.6

9.3 10.0 10.0 10.2 9.7

Male

2000

139.6

7.5 5.5 5.3 5.0 4.8 3.7 5.9

10.7 10.7 11.8 11.2 9.3

9.0 9.8 9.7 10.0 9.5

Female

Barbados Economic and Social Report 2008 Appendices

Barbados Economic and Social Report 2008

Appendices

APPENDIX 29 POPULATION, RATES OF BIRTH, DEATH AND INFANT MORTALITY 1984 - 2008

Year

Resident Population at December 31 (‘000 persons)

Rate of Natural Increase

Birth Rate

Death Rate

(Per 1000 pop.)

Rate of Infant Population Mortality* Growth (per 1000 Births)

1984 1985 1986 1987

255.8 257.0 258.0 258.8

16.7 16.7 15.7 14.8

7.8 8.3 8.4 8.5

8.9 8.4 7.3 6.3

18.4 17.8 19.0 22.2

0.3 0.4 0.4 0.3

1988 1989 1990 1991 1992

259.4 260.3 260.8 262.5 263.1

14.5 15.5 16.5 16.2 15.6

8.6 8.8 8.2 8.7 9.0

5.8 6.7 8.0 7.5 6.8

19.5 18.2 15.5 15.3 13.8

0.2 0.2 0.5 0.4 0.2

1993 1994 1995 1996 1997

263.9 264.3 264.4 264.6 266.1

14.3 13.4 13.1 13.3 14.3

9.1 8.9 9.4 9.1 8.7

5.2 4.5 3.7 4.2 5.6

9.8 8.5 13.2 14.2 13.2

0.3 0.2 0.4 0.1 0.6

1998 1999 2000 2001 2002

266.8 267.4 269.1 270.4 271.3

13.6 14.5 14.0 15.0 14.1

9.3 9.0 9.1 8.9 8.5

4.3 5.5 5.0 6.1 5.6

7.8 10.0 17.0 15.8 14.4

0.4 0.2 0.6 0.6 0.3

2003 2004R 2005 2006 2007R 2008P

272.2 272.7 273.4 274.0 274.7 275.3

13.8 12.7 12.8 12.4 12.9 12.9

8.4 8.9 7.9 8.5 8.1 9.0

5.4 3.8 4.9 3.9 4.8 3.9

9.9 18.4 8.3 11.1 13.0 18.3

0.3 0.2 0.3 0.2 0.3 0.2

SOURCE :

Barbados Statistical Service Ministry of Health *Annual Reports of Chief Medical Officer P = Provisional R = Revised

A -- 29