Bridgetown.
The International Monetary Fund (IMF) has recommended a two year wage freeze and immediate cuts in Government spending as part of its prescription for the ailing Barbados' economy.
In a statement issued last night, the IMF told the Government to limit its expansive social spending to the most vulnerable in the society , given the administration limited fiscal space.
The IMF mission leader Therese Turner-Jones warned the Government, that given its fixed exchange rate regime, it was important that its fiscal stance in order to guarantee external sustainability and to strengthen its international reserves position in light of lower foreign reserves accumulation so far this year, an uncertain global economic situation.
