Barbados : Third Review Under the Extended Arrangement, Requests for Augmentation of Access, and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Barbados

Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

June 8, 2020

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Recent Developments and Outlook. Barbados has continued to make good progress in implementing its Economic Recovery and Transformation (BERT) plan to restore fiscal and debt sustainability, rebuild reserves, and increase growth—but now faces a major challenge owing to the global coronavirus pandemic. Since May 2018, international reserves have recovered, helping rebuild confidence in the country’s macroeconomic framework. This has helped rebuild confidence in the country’s macroeconomic framework, though reserves are expected to be negatively impacted by the crisis in the months ahead. The completion of the external debt restructuring in December 2019 has reduced economic uncertainty, and the agreed terms with creditors have put public debt on a clear downward trajectory. On December 11, 2019, Standard and Poor’s upgraded Barbados’ foreign currency sovereign credit rating from Selective Default to B-. However, prospects for 2020 have deteriorated significantly owing to the global pandemic, and risks to the outlook are now very high and tilted to the downside.

Series:

Country Report No. 2020/192

Subject:

English

Publication Date:

June 8, 2020

ISBN/ISSN:

9781513546711/1934-7685

Stock No:

1BRBEA2020001

Format:

Paper

Pages:

79

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