Hurricane Beryl Fallout: Economist Warns of Economic Challenges for Barbados' Fishing Industry

The devastation wrought by Hurricane Beryl on Barbados’ fishing fleet could cause inflation to spiral among other significant economic challenges, according to leading economist Professor Justin Robinson.

Professor Robinson, Pro Vice Chancellor for Undergraduate Studies at the University of the West Indies, warned that the destruction of fishing boats at the Bridgetown Fisheries Complex could have far-reaching consequences despite the industry’s relatively small contribution to the island’s GDP.

“If there was a significant reduction in fish, it would have a negative impact on GDP and as expected, there may be a shortage of fish and if the prices were to go up, given the importance of fish in the diet of Barbadians, it certainly could be a source of inflation,” Professor Robinson said.

He added that the potential shortage of fresh fish could also affect the tourism industry, particularly during the Crop Over season when visitor numbers typically surge.

Home Affairs Minister Wilfred Abrahams reported to Parliament that as of last Friday, 209 boats were damaged, with 90 per cent uninsured. Some boat owners estimated repair costs could reach up to $50 000 per vessel.

Professor Robinson highlighted the personal impact on fisherfolk, many of whom lack insurance coverage or national insurance contributions. “It’s a significant impact on those persons and their families, there could almost be an impact along the lines of what some people experience during [heightened periods of COVID-19],” he said.

The economist predicted that recovery could take at least six months, depending on access to financing and supply chain issues for boat replacement and equipment.

But Professor Robinson also suggested that the crisis could reshape the industry. “There is some potential for ownership of the sector to reshape if some players take advantage of this gap. Are we gonna see new players come into this, people with capital available bringing in boats and entering into the sector?”

While acknowledging the relatively small share of fishing in the overall economy, Professor Robinson emphasised its importance to Barbadian diet and culture. He warned that any significant reduction in output or increase in imports “would have a negative impact on GDP and maybe more significant from a macro viewpoint, it could have an inflationary impact”.

The economist called for state intervention to address both immediate loss of income and long-term fleet replacement challenges faced by affected fisherfolk.