BARBADOS’ EXPORTS fell by $57.5 million in the first half of the year, an outcome that is causing Central Bank Governor Dr Kevin Greenidge concern.
The 7.2 per cent between January and June resulted from lower fuel re-exports and weaker domestic shipments of food and beverages, particularly rum, lard, and margarine, amid softer international demand.
This is what Greenidge reported on Friday during a press conference at Frank Collymore Hall to review of Barbados’ half-year economic performance.
The country’s merchandise exports totalled $796.5 million in the first half of last year, but fell to $739 million in the same period this year.
On the other hand, imports increased, ended June at $2.12 billion, up from $2.03 billion in the same period last year.
“Any decline will cause you concern,” the Governor responded when asked about the fall in exports.
He said while it was too early to say that United States tariffs had impacted Barbados’ merchandise sales overseas, “there may be a bit going on there”.
Consumers may think twice
“When we talk to the industry, what we are being told is that it reflects a weakening demand for some of those products. I think it’s too early to tell, from my perspective, whether that is tariff impacted, . . . but my hunch would be there may be a bit going on there,” he said.
“For example, rum, we know we have a highly quality, specialised product in terms of rum, but a ten per cent tariff means increase in the cost of bottles, increase in the cost of labels, increase in the actual cork.
“But it also means that those persons in, say, New York or different areas who will consume a high quality product, at the margins may think twice when they have to pay ten [to] 15 per cent [more], but I think it’s too early to say. I think we should monitor and look at what’s going on there.”
Greenidge said that increased intra-regional trade, particularly in the context of the CARICOM Single Market and Economy, was an important way for Barbados to boost its exports, while reducing the cost of imports.
“I think that is absolutely where we should be looking. In our last economic report . . . when we first started to see this
unravelling of tariffs and this continued global struggle intensified, one of our policy recommendations in terms of that, and also where we see things heading, is that we got to look more inter regional [trade],” he said.
“And I think more at the last Heads of Government CARICOM meeting you saw that playing out in all kinds of directions. I think that will help us now to be able to keep costs down and also to insulate ourselves a bit. So absolutely, home drums beat first, regional drums should beat also.”
Driven by higher demand
Greenidge said in the Central Bank’s half-year economic review that “the merchandise trade deficit widened during the first half of 2025 as imports rose and exports declined”. “The deficit expanded by $146.3 million compared to the same period in 2024. Imports increased by 4.4 per cent, driven by higher demand for food and beverages, hybrid and electric vehicles, and crane machinery used to upgrade the Bridgetown Port,” he said.
The Barbados Statistical Service’s (BSS) monthly trade bulletin for June also shared information on the decline in exports between January and June.
For example, while in the first six months of 2024 rum exports were $46.6 million, they declined to $31.9 million in the same period this year. In that same time, margarine and shortening exports fell from $13.9 million to $10.3 million, exports of metal containers fell from $8.4 million to $7 million, and exports of pigments, paints and varnishes decline from $1.74 million to $1.68 million.
On the other hand, in the same six months between 2024 and 2025there was an increase in exports for medicaments and pharmaceuticals (from $15 million to $15.3 million) disinfectants, insecticides etc (from $9.7 million to $10.5 million), paper, paper products and articles of paper (from $4.3 million to $4.9 million). (SC)
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