Leader of the Opposition Ralph Thorne has accused the government of misleading Barbadians by presenting inflation-driven price rises as genuine economic growth, alleging that the administration is distorting economic data and failing the working class.
“Now it is conceded that there has been some economic growth coming out of COVID-19, obviously and quite naturally,” he said in the House of Assembly during his response to the 2025 Budget. “You had an economy that was closed, like all other economies, and so when an economy reopens, it naturally grows. Growth is natural. But we continue to confront this government with the assertion that a lot of the stated growth is really inflation.”
Thorne contended that the government’s method of calculating GDP in dollar terms was masking the reality that rising prices were inflating economic performance statistics rather than indicating true expansion.
“What government is doing is calling inflation growth,” he said. “If you have prices increasing, the same number of goods valued at $100 today might be valued at $120 tomorrow, but that does not mean there has been real growth. That is why economists argue that this growth is not real—it is inflationary.”
The opposition leader further criticised the administration for downplaying inflation’s impact on the economy, particularly for ordinary Barbadians. He challenged the official government figure of 1.4 per cent inflation, deeming it unrealistic given that the country’s primary trading partners, Canada and the United States, were experiencing inflation rates of around seven per cent.
“I think the government has been telling the people of this country, who go to the supermarkets in terror, that inflation is at 1.4 per cent,” he said. “Now, we know that this is not likely the case. If the majority of our goods come from the United States and Canada and they are experiencing inflation at seven per cent, it means we are paying seven per cent more as well. Unless vendors are engaging in charity, it is impossible for these imported goods to be sold at less than that increase.”
Thorne dismissed the government’s claims that the Budget represented economic prosperity for the people, arguing there was no evidence to support such a declaration. He was also critical of the touted increase in the minimum wage, which he described as negligible and insulting to low-income earners.
“The increase to the minimum wage is really contemptuous,” he charged. “When you say you have a bountiful Budget, but workers are seeing wage increases amounting to just 17 cents in some cases, that is an insult to people’s intelligence.”
Thorne also took aim at the government’s reliance on foreign labour in construction, arguing it disadvantaged Barbadian workers and exacerbated social challenges.
“The harsh reality is that Barbadian workers are losing,” he said. “Many are left with only two options: emigration or crime.”
Painting a bleak picture of current socioeconomic conditions in Barbados, Thorne underscored the struggles many citizens face daily.
“This is not a happy country,” he lamented. “Many people are going to bed unhappy and waking up hungry.”
He called on the administration to move beyond political rhetoric and address economic challenges facing the nation with transparency and urgency.
“The taste that this Budget leaves in people’s mouths is one of disappointment,” he said. “Barbadians deserve better.”
(SZB)
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