Barbados’ economy has surged with a robust 4.5% real growth in the first half of 2024, marking a $300 million increase in total production and record employment levels, as announced by the Central Bank of Barbados on Monday.
During a press conference at its Spry Street headquarters, Governor Dr. Kevin Greenidge presented the bank’s six-month economic review, attributing the expansion primarily to a “strong” growth in tourism, which he described as “one of the strongest we have ever had” outside the pandemic period.
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“This was the largest first-half tourism performance that we have on record. The sector grew by 18%, with all markets showing strong performance,” Dr. Greenidge stated. Highlighting significant increases across various markets, he noted that the US market led with a remarkable 45% growth, rising from 82,000 to 120,000 tourists.
The economic growth has had positive ripple effects across various sectors. Construction grew by 7.1%, benefiting from increased hotel activity and public sector projects. Manufacturing showed positive growth, particularly in food and beverage, furniture, and chemicals production. Agriculture also recorded a 5.4% growth, driven by increased chicken and fish production.
The labor market saw improvements, with the unemployment rate dropping to 6.9% in March 2024, down from 8.9% in March 2023, marking the lowest first-quarter rate in recent history.
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Inflation moderated, with a 12-month average rate at 2.7%, down from 4.2% the previous year, attributed to easing international commodity prices.
Barbados’ foreign reserves increased by $245.4 million year-to-date, reaching $3.2 billion, equivalent to 32.2 weeks of import cover, largely due to tourism receipts contributing a net addition of $447 million.
On the fiscal front, the government recorded a primary surplus of $509 million and an overall surplus exceeding $300 million, equivalent to 3.5% of GDP. The debt-to-GDP ratio declined to 105%, reflecting both economic growth and debt reduction efforts.
Looking ahead, Dr. Greenidge projected a 4% growth for the full year, citing strong hotel bookings, increased airlift capacity, and robust cruise ship performance.
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The economic review also detailed tourism’s variable growth across markets, with notable increases in CARICOM and Canadian markets, while the UK market remained relatively stable.
Dr. Greenidge underscored the positive performance of Barbados’ commercial banking system, with non-performing loans at record lows and financial institutions maintaining strong capital adequacy ratios.
Overall, the central bank’s economic review painted a picture of broad-based growth across Barbados’ economy, underscored by improvements in business and services sectors, enhanced fiscal management, and ongoing strategies to enhance economic resilience.
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