Barbados attracted $367.3 million in foreign direct investment (FDI) in the first half of 2025 — a sharp increase of $109.9 million compared to the same period last year, according to the Central Bank of Barbados.
The figure surpasses the $257.4 million recorded in the first half of 2024 and puts the country well on track to exceed the $523 million total for all of last year. Central Bank Governor Dr Kevin Greenidge credited the surge to renewed investor confidence and increased financing for both public and private sector projects.
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“These inflows helped offset a widening current account deficit,” Dr Greenidge said, noting that the shortfall reflected higher merchandise imports, increased profit repatriation, and a slight drop in corporation tax receipts from financial global business companies — despite strong gains in travel receipts.
As a result, Barbados’ international reserves grew by $695.2 million, reaching a record $3.9 billion, equivalent to 37.4 weeks of import cover — far above the international benchmark.
Regional Context
The growth mirrors a broader upward trend across Latin America and the Caribbean, as outlined in the Economic Commission for Latin America and the Caribbean’s (ECLAC) latest report. Regional FDI inflows totaled US$188.9 billion in 2024, up 7.1% from the previous year. However, the report noted that FDI levels remain below those seen in the 2010s.
ECLAC highlighted that most of the 2024 growth was driven by reinvestment of earnings by existing transnational firms, rather than fresh capital from new entrants. While hydrocarbons projects saw a boost in announcements, renewable energy and technology-intensive sectors lost momentum.
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Although the report excluded Barbados due to data comparability issues, ECLAC’s Executive Secretary José Manuel Salazar-Xirinachs stressed the importance of harnessing FDI as a strategic tool for sustainable and inclusive growth.
Global Investment Sources
The United States remains the largest investor in Latin America and the Caribbean, accounting for 38% of total investment in 2024. The European Union’s share fell to 15%, the lowest since 2012, while intra-regional investment represented 12%. Chinese FDI accounted for only 2%, partly because much of it is routed through third countries or structured in ways not counted as traditional FDI.
With Barbados posting such strong mid-year results, officials will be watching closely to see if this momentum continues into the second half of 2025 — potentially marking a record-breaking year for foreign investment in the island’s economy.
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