New system to monitor B'dos economy
The Barbados government says it will be implementing a warning system to track the island's economic performance in the various sectors and to assist enterprises in re-organising their business activities so as to sustain the current levels of employment.
The programme, which was produced in conjunction with two lecturers at the Cave Hill campus of the University of the West Indies, "is another tool for economic planners to predict potential downturns in the business cycle in advance".
A government statement said that the model is designed to be used by policymakers on a quarterly basis as a means of implementing corrective actions during the initial phases of the public and private sectors' budgetary and planning stages.
It quoted officials from the Research and Planning Unit of the Ministry of Economic Affairs as saying that the consultants examined a number of indicators to come up with three overall indices that "speak to economic performance at different time periods".
They identified leading, coincident, and lagging indices, as the benchmarks to gauge the movement of the island's gross domestic product.
Based on the results of the three indices, government officials, managers, and the business sector, are now equipped with additional information, which would allow them to better plan for their business life cycle and implement the requisite strategies to keep them afloat during an economic crisis," the statement said.
Economic Affairs Minister Dr David Estwick will officially launch the programme on Tuesday. He is urging the private sector to cooperate with the government. He added that businesses should submit information on a continuous basis since cooperation was crucial to the success of the programme.