Barbados Sees Rise in Borrowing, Savings, and Tax Revenues, Boosted by Economic Growth: Central Bank Report
May 6, 2024
Barbados sees rise in borrowing and savings, with businesses and households accumulating nearly $15 billion in savings. Government revenue boosted by transaction-based taxes, notably VAT. Central Bank credits economic growth.
BUSINESSES AND households in Barbados are borrowing more money while adding to the near $15 billion they have stashed away in savings accounts at commercial banks and other financial institutions.
More money is also pouring into Government’s coffers via transaction-based taxes, especially value added tax (VAT), which has contributed more than $2 billion to the Treasury over the last two financial years.
The Central Bank of Barbados attributes these developments to increased economic activity over the past three years. It is also a period throughout which inflation has been high.
“The outstanding credit to the NFPS increased compared to the end of 2023. During the review period, an increase in lending to households, hotels and restaurants, and the real estate sector, outstripped significant repayments in the construction and distribution sectors,” the Central Bank says in its first quarter economic report. (SC)
