• The government is exploring options to make Barbados more competitive in the sale of luxury goods, as part of its wider economic and tourism strategy, according to Prime Minister Mia Mottley.
• The PM has invited the Barbados Chamber of Commerce and Industry (BCCI) to submit recommendations on how to reposition the island as a destination for high-end shopping. “I’ve invited the private sector—the Chamber of Commerce specifically—to submit to me a paper with respect to luxury goods again,” the Prime Minister said during her address at the opening of the Courts Superstore at W Plaza, Welches, on Thursday.
• “Barbados did lose some competitiveness with respect to the sale of luxury goods in this country. It is part and parcel of our tourism brand and part of our value proposition, and we need to claim it back.”
• Mottley did not outline any specific measures under consideration but said the matter was being actively reviewed as part of the government’s ongoing efforts to strengthen the island’s retail and investment climate.
• The Prime Minister’s remarks come amid increased focus on improving customer service and upgrading commercial infrastructure in key retail zones. She said developments such as the new Courts Superstore were important to improving the overall consumer experience but also signalled the administration’s intention to support both mass market and niche retail offerings.
• Officials within the business community have previously called for a review of import duties and taxes that affect the sale of high-end items, arguing that they have contributed to a decline in Barbados’ appeal to luxury shoppers.

(Source: Barbados Today)

• Factories around the world, from Japan to Britain to the United States, saw activity slump in March as businesses braced for new U.S. tariffs, though some saw a bounce in the race to get goods to customers before the new measures hit.
• U.S. President Donald Trump is set to announce a tariff proposal on what he's called "Liberation Day" on Wednesday, after implementing levies on aluminium, steel, and automobiles, along with increased tariffs on all goods from China. Trump has said no nation will be spared tariffs that policymakers fear will be the latest blow to a global economy barely recovered from the COVID pandemic and beset by concerns over political instability and wars.
• Asia's factory activity mostly weakened in March as the impending tariffs, plus weak global demand, hurt business sentiment. Purchasing Managers' Index surveys - a closely-watched gauge of economic sentiment - showed. Japan's factory activity fell at the fastest pace in a year, while South Korea's decline in factory activity also sped up, and the Taiwanese read-out was weaker as well.
• China was one outlier, showing activity in the world's second-largest economy picking up as factories rushed to get goods to customers before U.S. tariffs took effect. And in the United States itself, where factory activity had expanded in the first two months of the year, manufacturing shrank, with the Institute for Supply Management (ISM) manufacturing PMI slipping to 49.0 from 50.3 in February.
• The front-loading of activity was also cited as a possible factor behind a bounce in Europe's long-suffering manufacturing industry, where output rose for the first time in two years, the PMI for the 20-country euro zone showed.
• Germany, Europe's largest economy, saw its first production increase in nearly two years, while the downturn eased in France. But British manufacturers endured a torrid March as the tariff threat and impending tax increases contributed to a plunge in new orders and ebbing optimism. Investors remain nervous, but global stocks rose on Tuesday following Wall Street's overnight gains, while gold hit an all-time peak. Investors remain nervous, but global stocks rose on Tuesday following Wall Street's overnight gains, while gold hit an all-time peak.

(Source: Reuters)

• Brazilian central bank director Nilton David signaled on Monday that policymakers will monitor inflation expectations when determining their next steps, anticipating that inflation will remain persistent in the coming months.
• Earlier this month, the central bank raised interest rates by 100 basis points for the third consecutive time, sticking to previous guidance, and penciled in a smaller hike in May.
• The decision was made with "strong conviction" that the tightening cycle was not over but that the next move should be of a lesser magnitude, the bank's director of monetary policy said at an event hosted by Itau BBA.
• The key question now is how the next few months will unfold, with inflation readings expected to remain high for the next three to five months, he said, adding that policymakers would also closely monitor market inflation expectations and economic agents' behaviour.
• The director stressed that monetary policy is guided by inflation, not economic activity, and noted that policymakers "strongly believe" long-term unanchored inflation expectations stem from concerns over potential fiscal surprises.
• Despite the Brazilian real appreciating nearly 8% this year, inflation expectations have only moved further away from the official 3% target, he said. Market participants surveyed weekly by the central bank project inflation at 5.65% this year, 4.50% in 2026, 4.00% in 2027, and 3.78% in 2028.
• The director also said the central bank has yet to reach a firm conclusion on the impact of new rules for payroll-deductible loans to formal workers. One possibility, he noted, is that borrowers will refinance expensive debt with cheaper credit, while another is that they will take on new debt.

(Source: Reuters)

• New York Federal Reserve President John Williams stated that monetary policy is "well positioned" for what the economy might do this year, as he acknowledged there are risks that inflation could once again heat up. Williams added that while he cannot predict when the U.S. central bank might change the current level of interest rates, keeping it in place "for some time" will allow officials to study incoming data and decide what they need to do next.
• Richmond Fed President Thomas Barkin said the timing of any rate cuts will depend on what happens with inflation. He noted that while he is nervous that the Trump administration's tariffs will push up prices, he is also worried the levies could hurt the job market.
• The two central bankers weighed in at a time of high economic uncertainty as President Donald Trump continues to press forward with disruptive shifts in trade policy while at the same time downsizing the federal government, complicating any effort to gain clarity about the outlook for the economy.
• That uncertainty proved to be a defining characteristic of the Fed's rate-setting meeting earlier this month, where policymakers held the central bank's benchmark overnight interest rate steady in the 4.25%-4.50% range, while maintaining hopes they'll be able to cut rates later this year.
• Notably, the Fed's outlook has been complicated by the fact that Trump's tariffs, which could be significantly expanded on Wednesday, are almost certain to drive up inflation in the near term, with big questions about how long those gains might last. At the same time, uncertainty is complicating businesses' efforts to plan and invest and is rapidly and dramatically souring consumers' attitudes.
• All of this is leading to rising worries about an economic downturn. On Sunday, Goldman Sachs forecasters said they will raise their recession probability to 35% from 20%, noting “the sharp recent deterioration in household and business confidence, and statements from White House officials indicating greater willingness to tolerate near-term economic weakness in pursuit of their policies.”
• Overall, the shift in the outlook has been driving financial markets to price in more Fed interest rate cuts as traders and investors reckon the central bank will have to take action to buoy the economy. Williams said that while he was not going to try to put odds on the prospect of a recession, where the economy now stands is "very solid" with "good growth up to this point," with a still healthy labour market.
• The New York Fed leader also said he needs to have more information before he can say definitely what tariffs will do to price pressures. Still, his forecast is "that inflation will be relatively stable" this year, while adding that there are "upside risks" for price pressures.
• International Monetary Fund Managing Director Kristalina Georgieva backed up Williams' outlook and said the process of slowing inflation will continue, albeit at a reduced pace this year. She also said that "when we look at inflation expectations, they're a little higher, but not dramatically changing the disinflation trajectory between now and 2026."

(Source: Reuters)

• China, Japan and South Korea agreed to jointly respond to U.S. tariffs, a social media account affiliated with Chinese state broadcaster CCTV said on Monday. The comments came after the three countries held their first economic dialogue in five years on Sunday, seeking to facilitate regional trade as the Asian export powers brace against U.S. President Donald Trump's tariffs.
• Japan and South Korea are seeking to import semiconductor raw materials from China. China is also interested in purchasing chip products from Japan and South Korea, the account, Yuyuan Tantian, said in a post on Weibo.
• All three sides agreed to strengthen supply chain cooperation and engage in more dialogue on export controls, the post said. During Sunday's meeting, the countries' trade ministers agreed to "closely cooperate for comprehensive and high-level" talks on a South Korea-Japan-China free trade agreement deal to promote "regional and global trade", according to a statement released after the meeting.
• The ministers met ahead of Trump's planned announcement on Wednesday that there would be more tariffs on what he calls "liberation day" as he upends Washington's trading partnerships.
• Beijing, Seoul and Tokyo are major U.S. trading partners, although they have been at loggerheads amongst themselves over issues including territorial disputes and Japan's release of wastewater from the wrecked Fukushima nuclear power plant.

Source: (Reuters)

• Mexico's government may look for other trade partners, the nation's president said on Wednesday, after the United States slapped tariffs on its southern neighbour. President Claudia Sheinbaum said that Mexico could shift trade alliances "if necessary," referring to the possible continuation of the tariffs.
• S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with fresh duties on Chinese goods, standing to seriously alter supply chains and long-standing trade partnerships.
• Sheinbaum is tentatively set to have a phone call on Thursday with the U.S. leader about the tariffs, she said in her daily morning press conference. If the tariffs continue after that, Mexico "will reach out to Canada and other nations," Sheinbaum noted. "It is a very definitive moment for Mexico," Sheinbaum said. "Our economy is fine, but there will be no submission. ... Depending on the circumstances, we will look to Canada and other countries."
• The Mexican peso slightly strengthened by 0.84% on Wednesday to 20.41 per U.S. dollar. In an appeal to Mexican national pride, Sheinbaum has called for a rally on Sunday in Mexico City's historic Zocalo square where she will outline her response to the United States, which she said would include retaliatory tariffs.
• S. Commerce Secretary Howard Lutnick said on Wednesday that an announcement on tariffs could come later in the day, hinting at possible relief for some sectors such as automobiles. The auto sector stands to take a heavy hit from tariffs, with parts typically crossing the border several times as cars are assembled. The United States imported $181.4Bn in autos and auto parts from Mexico in 2024, representing nearly 10% of Mexico's economy, according to Goldman Sachs.

(Source: Reuters)

• Barbados Chamber of Commerce and Industry (BCCI) head James Clarke has called for urgent reforms to address persistent delays at the Bridgetown Port, warning that inefficiencies are stifling business operations and undermining the country’s economic growth.
• Clarke called for urgent action to streamline port logistics, reduce bureaucratic red tape, and modernise trade and investment policies to position Barbados as a more competitive global player. The BCCI president said port bottlenecks remain one of the most pressing concerns for the local business community, highlighting frustrations over costly delays and inefficiencies that have plagued importers and exporters alike.
• These issues, he stressed, must be addressed as part of a broader strategy to improve the ease of doing business in the country. “Delays at the port continue to affect our business community, impacting supply chains and creating unnecessary hurdles for trade,” Clarke added.
• Addressing an audience of business leaders and policymakers, Clarke outlined the chamber’s agenda for 2025, identifying regulatory reform, digital transformation, and business advocacy as key priorities. He said the chamber would continue working closely with the government and social partners to implement policies aimed at reducing bureaucracy, modernising business practices, and making Barbados a more attractive destination for investment.

(Source: Barbados Today)

• Edufocal Limited (LEARN) reported a net loss of $57.97Mn for the twelve months ending in December, due to a decline in revenue and higher costs.
• Revenue for the year 2024 was J$97.17Mn, a sharp dip (63.1%) from J$263.54Mn in 2023. This decrease is primarily due to the shift towards a more predictable and resilient revenue model, which has temporarily impacted topline performance.  The company has started monetising its proprietary technology platforms and is exploring licensing agreements to further expand its revenue.
• Administrative expenses increased by 20.6% compared to the previous year, driven by investments in technology. However, these costs were partly offset by savings achieved through optimized staffing and renegotiated vendor contracts.
• LEARN’s stock price has decreased by 19.4% since the start of the calendar year and has lost 71% percent in market value since being listed in March 2022. The stock closed Tuesday’s trading session at $0.29.
• Throughout the year, the company has focused on expanding into new markets and exploring partnerships to generate recurring income, recognising the limitations of its traditional revenue streams.  The expanded 'Quizzitive' platform, along with strategic partnerships and market expansion efforts, is expected to drive incremental revenue growth, ultimately delivering long-term value for shareholders. However, the shift towards a more diversified revenue base and recurring income is expected to stabilise revenue in the long term.
• While expanding its technology could enable the company to scale more quickly, it will incur significant costs to build out. Additionally, acquiring new customers may take longer than expected, potentially impacting earnings.

(Sources: JSE & NCBCM Research)

• The poultry sector is continuing a growth path with farmers expanding their production to meet local needs and beginning to focus on addressing regional demand, says the Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green. He noted that the sector has seen a 22.4% increase per annum over the last 10 years.
• Minister Green, who was addressing the recent opening of Caribbean Broilers (CB) Group’s multimillion-dollar Air Chill Poultry Processing Plant in Hill Run, St. Catherine, noted that despite losing more than 300,000 birds in Hurricane Beryl, the poultry/broiler sector showed a 3.3% growth at the end of 2024.
• “We have also seen that growth in egg production, which again, we probably do not speak about enough, was one of the major successes of the agricultural sector. In 2019, our egg production was 166Mn eggs. In 2023, we produced 255Mn eggs, representing a 54% increase,” the Minister reported.
• Large firms are also providing leadership and guidance to the smaller operators, training them in good agricultural practices and animal husbandry, offering high-quality inputs to improve productivity, reduce mortality and get greater returns on their investment.
• For example, the Minister noted that the work being done by the CB Group through NutriMix and its genetic station in Old Harbour, St. Catherine, is improving the breeds to farmers and ensuring that they get chicks at an affordable cost while also providing them with veterinary services. This integrated approach, he said, has not just benefited the company but agriculture in general.

(Source: JIS)

• Prime Minister, Dr. the Most Hon. Andrew Holness, has reiterated the Government’s commitment to ensuring that all Jamaicans have access to affordable housing solutions. He noted that there is an imbalance between housing supply and affordability, with many qualified individuals struggling to find solutions within their income bracket.
• The market is producing homes primarily for those with higher incomes, leaving a gap for low and middle-income families. In addition, houses priced at $12Mn are often sold for $18Mn due to market demand dynamics. “What we want to do is to get the market to produce houses in all categories,” he said, stressing the need for affordable options alongside high-end developments.
• “We need developers who can build houses at scale to bring down costs and make housing more affordable,” he stressed. The Prime Minister noted the role of the National Housing Trust (NHT) in financing low-income and achievable housing projects.
• “We’re doing everything to create what is called effective demand,” he said, noting that the Guaranteed Purchase Programme was introduced as a strategic measure to mitigate market risks for developers. “We say to developers; you build the houses, we buy them at a specific price and then we sell them at an affordable price,” he detailed. This approach aims to encourage developers to construct homes without fearing financial losses.
• The Prime Minister cited other initiatives aimed at making housing more affordable, including reducing the interest rates on mortgages, with some low-income borrowers benefiting from a zero percent interest rate. Efforts are underway to deliver 43,000 houses over the next few years as part of a broader strategy to meet housing demands.

(Source: JIS)