THE CARIBBEAN DEVELOPMENT BANK (CDB) has joined the list of institutions predicting economic growth for Barbados this year.
But the CDB’s forecast of one per cent expansion in gross domestic product (GDP) is not as optimistic as the Central Bank’s 1.25 per cent to 1.75 per cent outlook, and is marginally above the International Monetary Fund’s 0.6 per cent economic growth prediction.
Director of Economics Dr Justin Ram said while Government still had “a bit to do” on the fiscal side, as well as “improving the business environment and of course shoring up the social safety net”, growth was possible in 2020.
“The reason for our forecast is that we see the possibility that there could be some major construction activity beginning this year and we think that augurs well because the way that construction goes and foreign direct investment goes within our economies, so too do our economies,” he explained.
“And we see that there are real opportunities for the commencement or even the recommencement of some investments in tourism hotel plants. In addition to that the Government has been doing some infrastructure work on its own.