Heavy borrowing could lead to debt trap, economist warns

If Barbados continues to borrow at the rate it has been doing for the past two years, the country could end up in a debt trap, says economist Carlos Forte.

However, although he does not believe being under an International Monetary Fund (IMF) programme is inherently a bad move, he urged Government to be cautious with its borrowing.

“I don’t want to create the impression that being in an IMF programme is a bad thing in [and] of itself. However, is the magnitude of the borrowing we’ve seen over the last two and half years sustainable? The answer, quite frankly, is no,” he said.

Forte, a Barbadian based in Canada, is the senior consultant and project manager, research, valuation and advisory, economic consulting, of the Altus Group. He was a guest speaker on the Democratic Labour Party’s The First Republican Estimates: Implications For Barbados discussion, which was held virtually yesterday. (TG)


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