Barbados’ economy has entered 2026 in an “excellent” position, with 20 consecutive quarters of growth, low inflation, falling debt and strong foreign reserves, according to Central Bank Governor Dr The Most Honourable Kevin Greenidge.
Presenting the Bank’s January to March review today, Greenidge said the economy expanded by 1.7 per cent in the first quarter, while inflation stood at 1.1 per cent and unemployment at 7.2 per cent.
Asked how the country was performing, he replied: “I’d say we’re excellent.”
He also revealed Barbados intended to maintain close ties to the International Monetary Fund (IMF) as a safeguard against global shocks.
“When we exit the programme, the Prime Minister had indicated that we would keep the IMF on speed dial, close, almost like an insurance policy,” Greenidge said.
Tourism remained the main driver of growth, with stay-over arrivals rising 1.1 per cent to more than 237 000 visitors, while cruise arrivals surged 30 per cent.
Greenidge said stay-over visitors remained far more valuable economically.
“Long stay gives you about nine times what you get from cruise,” he said.
Construction rose 3.5 per cent, while agriculture grew 4.1 per cent, helped by a sharp rebound in fishing. Fish catches jumped 55.2 per cent after disruption caused by Hurricane Beryl last year.
Government’s finances also improved, with a primary surplus of $647.3 million and debt falling to 94.6 per cent of GDP.
International reserves remained around $3 billion, equivalent to 25.5 weeks of import cover.
The Central Bank expects Barbados’ economy to grow between 2 and 3 per cent this year, though Greenidge warned that oil prices, geopolitical tensions and climate shocks remained risks. (CLM)
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