Chapter 4

 GROWTH OF THE ECONOMY OF THE LEEWARD ISLANDS, WINDWARD
 ISLANDS AND BARBADOS 1/


Growth of the economy in recent years
 Source information is rather scant for this region, so we have presented two main
tables only. Table 5a gives a summary of the gross domestic product, national income
and national product for the whole region for the years 1959, 1965, 1970 and 1975.
Table 5b shows the industrial origin of gross domestic product on an island basis.

 The rate of growth predicted for these territories works out at approximately 2.8% per
annum throughout the period. In spite of the fact that both sugar and bananas must be
projected at a declining growth rate (see part four) we do not predict a declining growth
rate for this region as a whole, for the following reasons.

 The smaller islands have not experienced a growth rate comparable with that of Jamai-
ca and Trinidad and Tobago during the past decade although most territories have shown
positive growth in terms of per capital real income. They are, however, at present ex-
periencing a lower per capital income than the larger islands and for that reason may be
capable of higher rates of growth in the future. We believe also that political uncertainties
caused by the breaking up of the larger federation and the difficulties of forming the
smaller federation have tended to inhibit growth. If the smaller federation materialises,
it should do much to increase stability and to encourage investment. Our projections are
based on limited agricultural expansion and on a rather greater expansion in tourism
and secondary industries and in distribution, commerce and transport and other service
industries.

 Table 5b is intended to provide a picture of growth by sectors and territories and can
best be used to illustrate a description of the individual economies and the projections for
the future.


Future growth in Barbados
 Barbados is the most important of these economies, having in 1960 approximately one-
third of the population of the group and rather more than one third of the national income


1/ Some source material for data in this chapter and Tables 5a and 5b can be found in
 References N 1. 4, N 1. 5, and N 1. 6, Appendix II.