Business leaders are confident about the island’s post-COVID economic recovery, but bemoan high costs of living and operating, a comprehensive economic outlook survey by the Barbados Chamber of Commerce and Industry (BCCI) has revealed.
The survey, conducted with professional services firm Ernst & Young (EY) Caribbean, sought the perspectives of C-suite executives, including CEOs, chief financial officers and executive directors from 11 industries.
According to the survey, 60 per cent of participants expressed confidence in the economy’s potential, largely driven by the recovery of the tourism industry, followed by positive prospects in construction and increased business demands.
But the respondents also highlighted concerns about a lack of ease in conducting business and the high cost of living and doing business on the island.
“Barbados continues to suffer from high costs of doing business, a lack of ease of doing business, and a high cost of living,” said BCCI president James Clarke. “We must own and accept these issues, use them to identify growth opportunities that may lie within them, and embrace the change to improve our economy and our island for the benefit of all Barbadians.”
The survey, aimed at gathering data on business confidence and the challenges faced, emphasises strides made by the local economy while pointing out areas needing attention. It focuses on steps being taken to navigate local, regional and global business realities in 2024.
“The post-COVID Barbadian economy has shown strong recovery, with opportunities for growth in diversified sectors such as healthcare, agribusiness, professional services, digital services, construction, and energy,” Clarke said. “This diversification helps mitigate dependence on any one sector and provides opportunities in emerging and non-traditional sectors.”
There was notable optimism in agriculture, food processing, construction, real estate, and financial services, with 69 per cent of respondents expressing confidence that their specific industries would continue to grow.
Christopher Sambrano, EY Caribbean’s Barbados managing partner for transaction advisory services, provided context: “At the time of doing the survey, the Barbados economy would have benefited significantly from record levels of tourism, however, with inflation remaining moderate and employment decreasing. So it was a buoyant point in time.”
He noted that despite the positive outlook, issues such as a highly concentrated economy and high operational costs remain concerning.
The survey also examined digital transformation and diversification roles. Top areas identified for government to prioritise driving growth were digital transformation to improve ease of doing business, encouraging foreign direct investment, and developing Environmental, Social, and Governance-related sectors, Sambrano said.
“This indicated respondents are echoing the need for government to modernise systems and processes to facilitate growth as well as promote sustainability opportunities,” he said.
Clarke said the survey’s objective was to understand how businesses are refreshing their strategies in light of current economic realities, the results of which are to guide the Chamber on its advocacy and support of the business community.
Assurance Partner at EY Barbados, Tracy Marshall highlighted the collaborative effort behind the survey, noting that the economic outlook for Barbados, an adaptation of an EY global CEO survey, provides valuable insights into how companies position themselves for future success.
“The survey itself aimed to gain insights into the approach companies are taking, specifically whether they were reverting to pre-pandemic strategies, or were they now exploring new and innovative ones to adapt and pivot,” she said.
“This encompasses companies’ sentiments around confidence of the economy to grow; talent strategy as the risk of migration resurfaces, as well as the need for new skills to adapt; corporate strategy as companies focus on growth and transformation; and how digitalisation is driving efficiency and competitive advantage, and other pertinent considerations that continue to impact our local businesses’ operations,” Marshall added. (SM)
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