Barbados’ economy is set for steady expansion, with the Central Bank projecting an annual real GDP growth of three percent in the short to medium term. Governor Dr. Kevin Greenidge shared this encouraging outlook during his 2024 economic review, highlighting key sectors that will drive progress and strengthen the nation’s economic resilience.
Strong Investment Driving Economic Growth
A key factor behind this positive trajectory is the continued investment from both the private and public sectors. Strategic initiatives in tourism, business, infrastructure, renewable energy, and food security are expected to stimulate construction, generate employment, and enhance overall economic performance.
Dr. Greenidge also emphasized that ongoing efforts to modernize administrative processes will make it easier to do business in Barbados, increasing efficiency and productivity. Targeted workforce training programs will further equip Barbadians with the skills needed to excel in emerging industries, ensuring long-term economic sustainability.
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Tourism and Cruise Industry Poised for Record Success
The tourism sector continues to thrive, with projections indicating another strong year in 2025. Demand for Barbados’ world-class experiences remains high, as forward bookings for the winter season show significant increases.
Cruise tourism is also set to surpass last year’s levels, with 34 additional cruise calls scheduled for 2025. This surge in activity will boost related sectors, such as accommodation, transportation, and entertainment, creating more job opportunities and contributing to foreign exchange earnings.
Global Economic Trends Supporting Growth
Global economic conditions are expected to work in Barbados’ favor, with the January 2025 World Economic Outlook predicting stable growth of 3.3 percent in major economies, including the U.S., Eurozone, and Canada. This positive global outlook is set to drive increased demand for Barbados’ tourism and trade offerings, further reinforcing economic expansion.
While challenges such as inflation and potential trade disruptions exist, Dr. Greenidge expressed confidence that Barbados is well-positioned to navigate these uncertainties. By maintaining strong economic policies and fostering innovation, the nation is poised to continue its upward trajectory.
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Inflation Easing and Food Security Strengthening
Inflation is expected to slow, with the 12-month moving average rate projected to range between 1.5 percent and 2.5 percent for 2025 and 2026. This is largely due to stabilizing global commodity prices, which will help keep costs manageable for both businesses and consumers.
Additionally, proactive measures to enhance food security, including recent livestock imports, will support the agricultural sector and mitigate potential price fluctuations. Investments in sustainable farming and local food production will further strengthen the nation’s resilience.
Fiscal Stability and a Promising Future
The government remains committed to fiscal responsibility, ensuring economic stability through increased revenue and careful financial management. Strong corporate tax performance and the adoption of global tax regulations provide an opportunity for additional revenue growth.
Financial indicators remain robust, with continued expansion in construction and strategic investments driving credit growth. This upward momentum is expected to further accelerate Barbados’ economic development, reinforcing its position as a stable and prosperous economy.
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Dr. Greenidge reaffirmed that Barbados is on a strong path toward sustainable and inclusive growth. With collaboration between the public and private sectors, continued innovation, and a focus on long-term prosperity, the nation is well-equipped to achieve its economic goals and build a brighter future for all Barbadians.
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