Drop in Barbados’ economy due to unemployment

Unemployment across numerous sectors of the economy has concluded in a drop in economic activity during this fiscal year’s second quarter in Barbados.

Significant contractions have been seen in construction, tourism and distribution sector along with storage and other business services sectors, stated by the Central Bank of Barbados.

CBB Governor Cleviston Haynes gave an update on the country’s economic review from January to June of this year on Wednesday.

According to the Governor, the Preliminary data have indicated that over 30 per cent of the unemployment claims are related to the restaurants and hotels, but significant job losses in other tourism-related industries, including real estate were also seen. The distribution sector has recorded for 17 per cent of job losses.

The review of the economic performance of Barbados between January and July also revealed that the output in the tourism sector had decreased by over 50 per cent, as the long-stay visitor arrivals have slumped by an approx. 54% and cruise passengers arrivals drop by 34 per cent.

The review noted that Barbados made humanitarian efforts to facilitate the repatriation of thousands of cruise crew members.

And these efforts enabled modest activity through the sea and airports, but this can not compensate for the lost income in restaurants, hotels, car rentals, tourist attractions, duty-free sales etc.

Although the total agricultural output of Barbados has increased by 3.7% because of the improved performance of the non-sugar sub-sector, the general fall in demand because of the closure of the restaurants and hotels has led to an excess supply of chicken and a 40% cut in production in the month of June.

Nevertheless, the raised production of high-quality molasses for the rum industry has lowered the sugar output. The report has also said that more than half of the sugar produced in the country, went for domestic consumption.

The non-traded sectors have experienced a 6.3 per cent decline in the activity ridden by a 13.3 per cent slump in the output in the second quarter this year.