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By Liliana Rojas-Suárez, Desmond Thomas, Editors

Symptoms element to the necessity for Barbados to opposite contemporary losses in competitiveness in foreign markets, a problem that the rustic is thankfully good situated to satisfy. during this publication, specialists talk about different features of the problem and develop particular proposals for addressing the competitiveness problem dealing with Barbados.

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By Liliana Rojas-Suárez, Desmond Thomas, Editors

Symptoms element to the necessity for Barbados to opposite contemporary losses in competitiveness in foreign markets, a problem that the rustic is thankfully good situated to satisfy. during this publication, specialists talk about different features of the problem and develop particular proposals for addressing the competitiveness problem dealing with Barbados.

Show description

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Additional resources for Barbados: Meeting the Challenge of Competitiveness in the 21st Century

Example text

In this period, as the deficit quadrupled, the central government debt-to-GDP ratio rose from 64 percent in March 2001 to 74 percent by March 2002 and 78 percent in March 2003. For each of the years ending March 2004 and 2005, it was 75 percent. For the overall public sector, the debt rose from 74 percent to 87 percent of GDP in the period March 2001 to March 2002. 9 percent for the years ending March 2004 and March 2005 respectively. The primary balance on the government’s account (which excludes interest payments on accumulated debt) is considered a better proxy of government’s effort to produce a fiscal surplus.

The export sector has played the leading role in this volatility. 4 percent per annum or about one-quarter the global rate of 6 percent per annum. For the longer period 1985–2004, domestic export sales (and volumes) have been exceptionally volatile—ranging from an annual decline of –45 percent in 1987 to an annual increase of about 27 percent in 1996. Similarly, the value of re-exports sales ranged from 50 percent in 1995 to –38 percent in 1986. ) fluctuated from –42 percent in 1987 to +32 percent in 1995 (see Table II-4).

The gap between merchandise exports and imports widened as is shown in the graph in Figure II-1. For the period 2002–04, this gap averaged about US$970 million, which was about 2½ times the size of the merchandise trade gap in 1985–88. 5 percent in 2004. As we noted, this volatility has been clearly reflected in the volatility of GDP growth, which is a matter of major concern for the efficiency and the competitive standing of the economy. Services exports constitute 80 percent of the value of Barbados’ total exports of goods and services and 42 percent of its GDP.

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