BRIDGETOWN, Barbados, CMC – The International Monetary Fund (IMF) says economic activity in Barbados continued to recover strongly in 2023, driven by tourism and related sectors.
In a statement at the end of a four-day mission to Barbados to review recent economic developments and reform efforts, the IMF delegation headed by Michael Perks said real domestic growth (GDP) expanded by an estimated 4.4 percent, reaching its pre-pandemic level.
“Annual inflation remained broadly stable, despite easing international food prices because adverse weather conditions reduced the supply of certain crops and higher prices of dining and other goods and services. The current account deficit is estimated to have narrowed to eight percent of GDP from 10.7 percent in 2022,” said Perks, whose mission was also intended to prepare the ground for the third review of the Extended Fund Facility (EFF) / Resilience and Sustainability Facility (RSF) programs.
Perks said the Barbadian authorities continue making substantial progress in implementing their ambitious economic reform program. He said indicative targets for end-December 2023 under the EFF were met, and international reserves rose to US$1.5 billion, equivalent to 7.3 months of imports.
The IMF official said fiscal solid performance through the first three quarters of the financial year 2023/24 bodes well for meeting the 3.4 percent of GDP primary balance target for the full fiscal year. Preparation of a budget for financial year 024/25 is well underway.
“Important steps are being taken to advance the structural reform agenda. End-December structural benchmarks aimed at the reform of state-owned enterprises have been implemented.
“Work is also underway on reforms to strengthen tax administration, public financial management, and the business environment while also building resilience to climate change under the RSF.”
Perks said that the significant progress made in strengthening the anti-money laundering and combating the financing of terrorism (AML/CFT) framework has enabled Barbados to exit the Financial Action Task Force grey list.
“The team is looking forward to conducting discussions for the third review under the EFF and RSF in May and would like to thank the authorities and their technical team for their hospitality, openness, and candid discussions,” he added.
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