IMF Staff Concludes Visit to Barbados

IMF News, February 28, 2025

Source details

An IMF team led by Michael Perks visited Bridgetown between February 25-28, 2025 to review recent economic developments and reform efforts and prepare the ground for the fifth and final reviews of the Extended Fund Facility (EFF) / Resilience and Sustainability Facility (RSF) programs.
End-of-Mission press releases convey preliminary findings after a visit; the views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.

Real GDP growth is estimated at 4 percent in 2024, driven by business services, tourism, and construction.
Inflation moderated to an average of 1.4 percent in 2024, reflecting an easing of global commodity prices and prices of domestic goods and services.
The current account deficit narrowed to 4.5 percent of GDP in 2024 (from 8.6 percent in 2023).
International reserves reached US$1.6 billion, equivalent to over 7 months of imports.

Program targets under the Fund-supported program for end-December 2024 were met.
The primary balance reached 5.3 percent of GDP through December 2024.
Authorities are on track to meet the 3.8 percent of GDP fiscal target for FY2024/25.
Public debt declined to close to 100 percent of GDP at end-2024.
The authorities remain committed to bringing public debt down to 60 percent of GDP by FY 2035/36.
Preparation of the 2025/26 budget is well underway.

Implementation of the home-grown 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).
Structural reform efforts continue to advance, supported by IMF technical assistance, including actions to:
- strengthen customs administration;
- strengthen the framework for public-private partnerships;
- enhance the Central Bank of Barbados’ liquidity forecasting.
Authorities are making progress with the implementation of the RSF reform measures for the last review.

The near-term economic outlook remains positive, but risks continue to be high and tilted to the downside, given Barbados’ vulnerability to global shocks and natural disasters.
The IMF team is looking forward to conducting discussions for the fifth and final reviews under the EFF and RSF in May.

International Monetary Fund, Press Release No. 25/51, February 28, 2025.