Barbados is riding a wave of economic success, with growth surging to an estimated 4% in 2024. Thanks to strong performances in business services, tourism, and construction, the island’s financial outlook remains positive. The country’s home-grown Barbados Economic Recovery and Transformation (BERT 2022) program continues to yield impressive results, supported by the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF).
An IMF delegation, led by Michael Perks, visited Bridgetown from February 25-28, 2025, to assess Barbados’ economic progress and pave the way for the final reviews of the EFF and RSF programs. The team’s findings highlight Barbados’ resilience and commitment to long-term stability.
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Key Economic Highlights
🔹 Growth & Stability: Real GDP expanded by 4% in 2024, with inflation easing to an average of 1.4%, thanks to lower global commodity prices and stable domestic costs.
🔹 Rising Reserves: International reserves climbed to an impressive US$1.6 billion, covering more than seven months of imports—an essential cushion for economic stability.
🔹 Stronger External Position: The current account deficit shrank from 8.6% of GDP in 2023 to 4.5% in 2024, reflecting better trade balances and fiscal management.
🔹 Fiscal Strength: The primary balance stood at 5.3% of GDP as of December, keeping Barbados on track to meet its fiscal target of 3.8% of GDP for FY2024/25. Public debt has also edged closer to 100% of GDP, with a firm commitment to reducing it to 60% of GDP by FY 2035/36.
🔹 Ongoing Reforms: The government is making strides in structural reforms, including customs administration improvements, stronger public-private partnership frameworks, and enhanced liquidity forecasting at the Central Bank of Barbados. The implementation of RSF measures is also advancing smoothly.
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IMF’s Outlook & Next Steps
While Barbados’ economic momentum remains strong, the IMF cautions that risks—such as global shocks and natural disasters—could pose challenges. However, the government’s steadfast commitment to economic reform is positioning the country for long-term success.
The IMF team will return in May 2025 for the fifth and final reviews of the EFF and RSF programs. In the meantime, the Fund expressed its appreciation for the Barbadian authorities’ transparency, hospitality, and dedication to reform.
As Barbados continues its economic transformation, all eyes are on the island’s ability to maintain stability and attract investment, securing a prosperous future for its citizens.
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