||Central Bank Of Barbados
Since the late 1970s, the Barbados economy has experienced four recessionary periods, namely 1981-83, 1990-93, 2001 and 2009. While the combined effect of the most recent episode and the ensuing four years of weak growth were not as severe as previous recessions, the protracted nature of the current economic recovery has generated much debate and concern. This paper examines critically the aforementioned recessionary periods, with particular focus on the proximate causes, comparisons of the performances of the traded and non-traded sectors during the pre- and post-recession phases and the importance of sufficient fiscal space for the prospects for recovery. The lack of sustained traded sector-led growth in the post-recession phase of each recession, and the degree of fiscal space prior to the recession, are critical factors that determine the nature and depth of recessions in Barbados.
The Anatomy of the Barbados Recession_Trends_ Causes and Comparisons.pdf