BRIDGETOWN, Barbados, CMC – The Central Bank of Barbados Tuesday said that the local economy contracted by 0.4 per cent in the first three months of 2013 and urged the authorities to put “back on track” the fiscal consolidation strategy as well as a new medium term adjustment strategy to turn around the island’s economic fortunes.

In its review of the Barbados economic performance fore the first quarter of this year, the Central bank said that on current trends there may be no real increase in the contribution to gross domestic product (GDP) from the tourism or international business sectors in 2013.
It said that the the forecasts for the rest of the economy are no better, with overall GDP expected to be virtually flat.