Faster investment execution, stronger productivity, and improved traded -sector performance.
Barbados’ economic growth prospects for the rest of this year hinge on these three factors, says Central Bank Governor Dr. The Most Honourable Kevin Greenidge.
He believes the economy is “entering the second half of the year from a position of strength”.
Greenidge offered this assessment as he gave the outlook recently while reviewing the economy’s January to June performance, a period during which there was a slow down of economic output.
“The economy continues to grow, unemployment remains low, inflation has stayed contained, international reserves are in a very strong position, the Government has maintained substantial primary surpluses, debt continues to decline, and the financial system remains well capitalised and liquid,” the Governor said.
“Of course, these outcomes [have not] just happened by accident. They reflect the years of disciplined policy, institutional reform, and the efforts to rebuild economic buffers.
“But stability and growth is not the destination. Stability is the platform from which we will use to move to the next phase to convert that growth and stability into transformation, whereby we get higher productivity, we get stronger exports, we get faster investment, improved labour, and generally living standards for all Barbadians improved.”
He added: “Our economic framework, which is encapsulated in BERT 2026, that is the framework that we are following, and it provides the framework for your next phase. But as you know, a programme is just a programme, what matters is execution.
“So we must move projects more quickly from announcement to implementation. We have got to invest in skills and strengthening our [competitiveness], we have got to deepen our financial markets, where you saw what we are doing with respect to BiMPay and modernise our public institutions and expand the use of technology.
“You see the various digital apps and things that governments brought on board to make it more seamless for the average person and BiMPay is an example of that.”
The Governor said the task ahead was “quite clear”.
“We must protect stability that we have achieved. We must strengthen the productive base of the economy. We see that the domestic economy is doing that, and we have got to raise productivity, deepen resilience, and ensure that the growth reaches households and communities,” he stated.
“With discipline, in my view, urgency and a shared purpose, we as a Barbadian people can move beyond stability and growth towards genuine economic transformation.
“So this is not that we just deliver on growth, but that means lasting prosperity, it means greater security, it means a wider opportunity and benefits for us and all generations to come.”
The Central Bank’s outlook said overall that “strong buffers give Barbados the capacity to withstand shocks”.
It expects the economy to grow by approximately two per cent this year, “, at the lower end of the two to three per cent range published at the end of the first quarter”.
This requires July to December economic “output to expand by approximately 2.5 per cent relative to the second half of 2025”. (SC)
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