Barbados economy contracts by one per cent

Data released by the Central Bank of Barbados have revealed that the country’s economy contracted by one per cent over the first six months of the year, compared with the similar period in 2009.



According to the data, although visitor numbers are up, the island’s tourism performance is not robust enough to provide the usual first-half boost in foreign exchange reserves during 2010.



The bank says reserves declined by US$34 million, leaving reserve cover at about 19.3 weeks of imports, significantly more than at the end of June 2009.



It says that output in construction has continued to contract and demand for domestic goods and services remain weak.



However, the average inflation rate for the 12 months, ending March, remained steady at 3.3 per cent.