Given that most of households’ financial assets of 1,500 trillion yen have still been in cash or deposits even though long time has passed since “savings to investment” was called for, there seems to be plenty of room for improving the environment which gets growth money out of sleep.
Recession in the UK and some European economies would also impact adversely on our tourism prospects and our investment inflows. However, the Barbados financial system should remain sound although there may be some loss in value (realised and unrealised) on US dollar fixed income securities held by financial institutions, including the Central Bank, as securities’ prices in the US markets tumble.