Opposition Leader Ralph Thorne has cautioned against celebrating Barbados’ recent credit rating upgrade from Moody’s, asserting that the government’s response distorts the reality of worsening economic and social conditions in the country.
In a statement on Thursday, Thorne said that while the improved rating may suggest better debt repayment prospects, it does not reflect the day-to-day struggles of ordinary citizens or the true state of the economy.
Earlier this week, Moody’s upgraded Barbados’ long-term issuer and senior unsecured ratings from B3 to B2 with a stable outlook. Minister in the Ministry of Finance Ryan Straughn described it as a “positive affirmation” of the government’s fiscal discipline under the Barbados Economic Recovery and Transformation (BERT) programme.
“This shows that Barbados is on the right path,” Straughn said, noting that consistent primary surpluses and reduced debt levels have played a critical role in stabilising the economy.
However, Thorne contended that the Moody’s rating had nothing to do with the economy.
He said: “The public must not be misled by government into believing that credit rating upgrades or downgrades are a rating of the economy. They are ratings of a country’s ability to repay its debt. The rating assesses the country’s creditworthiness and is not necessarily a statement as to macro or micro economic performance.
“By false reasoning, the government appears to have elevated the economy to an abstract concept that bears no relationship to the daily struggles of people in a country that is descending into its deepest social crisis of violence and disorder since Independence in 1966.”
The Democratic Labour Party (DLP) leader accused the administration of using the upgrade as a “false balm” to distract from what he described as Barbados’ deepest social crisis since Independence, pointing to rising violence, youth disillusionment, and the high cost of living as signs of a society in distress.
He referenced a recent statement by a government MP acknowledging the “hopelessness” faced by young men who are unable to survive through traditional means in a stagnating economy.
“The high cost of living continues to cripple households financially and the cost of government’s high living continues to be a burden to taxpayers,” he said, criticising what he called frequent, expensive, and unnecessary overseas trips by ministers and the establishment of new diplomatic missions which he said constitutes an additional financial burden.”
He also took aim at Straughn, suggesting that even the government has conceded its own underperformance.
“It must be a reasonable inference that Minister Straughn admits to government’s under-performance when he stated that his administration needs to do better in relation to matters of investment, earnings and job creation,” Thorne said.
The opposition leader further highlighted concerns in Moody’s own report about Barbados’ over-reliance on tourism and lack of economic diversification — a warning he said the government has glossed over. (BT)
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