Inter-American Development Bank (IDB) economists believe Government will find it more difficult to achieve a fiscal target that is key to reducing the public debt burden, if it prolongs support for Barbadians facing persistent cost-of-living pressures.
While lauding the authorities for the “tremendous progress in recent years in fiscal consolidation and debt reduction”, the IDB’s Caribbean economics team are cautioning that “important risks remain for Barbados”, including high and volatile energy prices resulting from disruptions to the Strait of Hormuz, “stubbornly high” interest rates and financial pressures.
