The World Bank is projecting that Barbados will record growth of 3.9 per cent this year and a further 2.8 per cent next year.
The projections are made in the Washington-based financial institution’s economic review, released on Wednesday, entitled Taxing Wealth for Equity and Growth.
According to the report, the Barbados economy will grow another 2.3 per cent in 2026.
Overall, the Word Bank said growth across Latin America and the Caribbean (LAC) will slow to 1.9 per cent this year from 2.1 per cent in 2023 before accelerating again in 2025.
It assesses that the LAC region is close to winning the battle on inflation and turning the corner on the macroeconomic dislocations wrought by the COVID-19 pandemic. However, it said, challenges remain to redress fiscal imbalances and reduce debt, recover lost earnings power, and regain the advances in reducing poverty of the previous decade.
The report explores the use of wealth taxes to generate fiscal space while advancing equity and growth – including, the proposed taxes on billionaires discussed at the G20.
It noted that while wealth tax collection in the LAC region is very low, representing only about 0.5 per cent of GDP, it exceeds five per cent in Barbados.
The financial institution pointed out that while 80 per cent of wealth, on average, is held as real estate, LAC collects about two per cent of tax revenues from real estate taxes, while many countries in the region collect almost none. Barbados is on the higher end, the World Bank said, collecting about four per cent of tax revenues from that source. (BT)
The post World Bank predicts 3.9 per cent growth for Barbados this year appeared first on Barbados Today.