Upward onward: Bajan excellence 2030 slide image

Upward onward: Bajan excellence 2030

Economic overview (continued) Economic sectors: Real economic activity expanded by an estimated 10.0% in 2022 from a recent low of -13.5% in 2020. This expansion was attributed by output achieved in the following key industries: о о Fiscal balance: • . Tourism output accelerated to an estimated 180.3% due to strong long-stay arrivals from major markets like the United Kingdom in Q4, driven by a significant arrival recovery following ease of travel restrictions. Arrivals for other large markets remained depressed below 50% of 2019 levels. While tourism has recovered well and largely inline with expectations, it is still lower than pre-COVID levels with visitors for 2022 having reached 62% of the 2019 arrivals. Manufacturing output grew by 3.4% over prior year led by increased output in the rum and other beverages and food sectors. These sectors benefited from the recovery in tourism, and domestic and international demand. Construction rose by approximately 5.3% due to infrastructural development projects in both the public and private sector such as the Government road rehabilitation project, Sam Lord's Castle development and Ape's Hill Villas. In the 2021/2022 period, the Government's fiscal deficit further deteriorated by 14.2%, over prior period, to -$490.6m. This was due to increased capital expenditure, goods and services and interest expense. additional revenue generated Increases in current expenditure were partially offset by revenue growth mainly from VAT, personal income taxes, and excise taxes. PwC | 2023/24 Budget review | Barbados BD$ (Millions) Nominal & Real GDP 11,000 15% 10% 10,500 10,000 9,500 9,000 8,500 17 5% 0% -5% -10% -15% 2018 2019 2020 2021p 2022e Nominal GDP ($Million) Real GDP Growth Rate (%) Source: Central Bank of Barbados,, p- provisional, e - estimated 18
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