IMF Staff Concludes Visit to Barbados
IMF News, February 29, 2024
Source details
- Canonical URL
- IMF Staff Concludes Visit to Barbados
Other formats
Bibliographic details
- Published: February 29, 2024
Economic performance (2023)
- Real GDP expanded by an estimated 4.4 percent, reaching its pre-pandemic level.
- Economic recovery in 2023 was driven by tourism and related sectors.
- Annual inflation remained broadly stable despite easing international food prices, due to adverse weather conditions reducing 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 8 percent of GDP (from 10.7 percent in 2022).
Program implementation and key statistics
- The visit took place between February 26-29, 2024 and was led by Michael Perks.
- Implementation of the Barbados Economic Recovery and Transformation (BERT 2022) program remains strong, supported by the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF).
- Indicative targets for end-December 2023 under the EFF were met.
- International reserves rose to US$1.5 billion, equivalent to 7.3 months of imports.
- Strong fiscal performance through the first three quarters of FY2023/24 supports meeting the 3.4 percent of GDP primary balance target for the full fiscal year.
- Preparation of a budget for FY2024/25 is well underway.
Structural reforms, resilience, and AML/CFT progress
- End-December structural benchmarks aimed at the reform of state-owned enterprises have been implemented.
- Work is underway on reforms to strengthen tax administration, public financial management, and the business environment.
- Reforms under the RSF are building resilience to climate change.
- Significant progress in strengthening the AML/CFT framework has enabled Barbados to exit the Financial Action Task Force grey list.
Outlook, next steps, and mission statement
- The IMF team is preparing for discussions for the third review under the EFF and RSF in May.
- The mission thanked the authorities and their technical team for their hospitality, openness and candid discussions.
- The staff visit will not result in a Board discussion; views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
Press Release No. 24/63, February 29, 2024 — IMF Communications Department