IMF reports on Barbados economy

The International Monetary Fund (IMF) is reporting that the Barbados economy is in a severe recession.



According to the agency foreign direct investment has dried up, tourism and international business have declined sharply and the country’s fiscal deficit is climbing.



However, Dr Frank Alleyne, the chairman of the Council of Economic Advisers to Prime Minister David Thompson, has said there is no need for alarm.



He says the government had devised a short-term plan to help the key tourism industry and is also crafting a medium term policy aimed at sustained recovery.



Meanwhile, the IMF is warning the government to quickly resolve the problems of Clico Barbados, which is likely to worsen the island\'s finances.