10 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | SEPARATE FINANCIAL STATEMENTS 2022 2018 2019 2020 2021 89, 200 95 ,000 100,700 103 , 300 2022 107, 500 Resilience through COVID-19 Continuous member growth Member satisfaction Management Discussion & Analysis (MD&A) Economic Performance 2021 According to the January 2022 press release from the Central Bank of Barbados (CBB), Barbados’ economic resilience to extreme shocks was tested for the second consecutive year by the Covid-19 pandemic. While industrialized economies had rebounded significantly from the initial 2020 shocks of the pandemic, emerging variants caused disruptions to the global supply chain and resulted in dampening domestic economic activity and higher inflation. Consequently, the CBB estimated that the local economy registered mild growth in 2021 as new waves of the virus slowed the recovery of the tourism sector and kept economic output well below pre-covid levels. The country experienced improved labour demands which led to a reduction in layoffs after a “National Pause” during the first quarter of the fiscal. Higher incomes and increased spending boosted revenue but the Government had to maintain the expansionary policy adopted in 2020-2021. Additionally, Covid 19, together with two unanticipated climate events, Hurricane Elsa and the Ashfall from the La Soufriere volcano in St. Vincent, required additional spending by the Government to strengthen health care, protect households and facilitate rebuilding initiatives. Faced with weakened foreign exchange earnings from tourism and significantly increased import expenditure, government financing was buttressed This MD&A provides a discussion and analysis of the financial position and performance of the Barbados Public Workers’ Co-operative Credit Union Limited (BPWCCUL) for the financial year ended March 31, 2022 with comparisons to the financial year ended March 31, 2021. The Management Discussion and Analysis (MD&A) should be read in conjunction with the audited financial statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”). by the support of multilateral financial institutions, including the International Monetary Fund (IMF); consequently, reserves were sustained at historic levels. Economic Activity Economic activity registered an upturn from the sharp decline in previous years for the final three quarters of 2021. Preliminary data also suggests that the fourth-quarter recovery of 11.5 percent raised economic activity for 2021 by 1.4 percent. Tourism The revival of this industry strengthened during the last quarter of 2021 as long-stay tourist arrivals in December peaked since pre-covid levels, reaching 47 percent of the corresponding pre-pandemic level of 2019. As global travel restrictions relaxed and phased reductions in health protocols continued, pent-up demand increased international travel. That notwithstanding, the steep fall in economic activity in the first quarter of 2021 outweighed the gradually improving performance over the last three quarters of 2021 and consequently overall arrivals for the year were only 20 percent of 2019 levels. Increases in airlift from new non-regional markets have supported Barbados’ recovering demand as a destination over the last three quarters. The gradual rise in arrivals though uneven, coupled with improved occupancy and room rates, particularly in the higher end of the market, raised overall revenue. Hoteliers also increased the availability of room stock, inclusive of the introduction of new plants. 3 Economic Activity Economic activity registered an upturn from the sharp decline in previous years for the third consecutive quarter of 2021. Preliminary data also suggests that the fourth-quarter recovery of 11.5 percent raised economic activity for 2021 by 1.4 percent. Tourism The revival of this industry strengthened during the last quarter of 2021 as long-stay tourist arrivals in December peaked to pre-covid levels reaching 47 percent of the corresponding pre-pandemic level of 2019. As global travel restrictions relaxed and phased reductions in health protocols continued, pent-up demand increased international travel. Notwithstanding, the steep fall in economic activity in the first quarter of 2021 outweighed t gradually improving performance over the last three quart rs of 2021. Consequently, overall arrivals for the year were only 20 percent of 2019 levels. Increases in airlift from new non-regional markets have supported Barbados' recovering demand as a destination over the last three quarters. The gradual rise in arrivals though COVID-19 Barbados Cases Sources: John Hopkins University
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