Barbados: 2021 Article IV Consultation, Sixth Review Under the Extended Arrangement Under the Extended Facility, and Request for Modification of Performance Criteria-Press Release; and Staff Report
IMF Staff Country Reports, December 17, 2021
Source details
- Canonical URL
- Barbados: 2021 Article IV Consultation, Sixth Review Under the Extended Arrangement Under the Extended Facility, and Request for Modification of Performance Criteria-Press Release; and Staff Report
Other formats
Bibliographic details
- Published: December 17, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781616356583.002
Progress on Economic Recovery and Policy Framework
- Barbados has been making good progress in implementing its Economic Recovery and Transformation (BERT) plan to restore fiscal and debt sustainability, rebuild reserves, and increase growth.
- A successful 2018-19 public debt restructuring has helped rebuild confidence in the country’s macroeconomic framework.
- International Financial Institution support (IFI loans) has supported reserve rebuilding.
Macroeconomic performance and outlook
- The economy contracted by 18 percent in 2020 amid a virtual standstill in the tourism sector during the pandemic.
- Economic growth is projected at 1.6 percent for 2021 premised on a modest recovery of tourism towards the end of 2021—down from 3 percent projected at the time of the fifth EFF review.
- The outlook remains highly uncertain, and risks are elevated.
External buffers and debt
- International reserves have increased to US$1.4 billion by October 2021 supported by IFI loans.
- The 2018-19 public debt restructuring and reserve rebuilding have helped restore confidence.
Shock events and risks
- Renewed COVID-19 waves weighed on the economic recovery in 2021 despite successful containment during 2020.
- Barbados was hit by the twin natural disaster shocks of volcanic ashfalls from neighboring St. Vincent in April and category 1 hurricane Elsa in July.
- Elevated uncertainty and risks to the outlook are highlighted.
Key statistics and publication metadata (as reported)
- 2020: economy contracted by 18 percent
- International reserves: US$1.4 billion (by October 2021)
- 2021 growth projection: 1.6 percent (projected for 2021)
- Previous projection at fifth EFF review: 3 percent
- Pages: 124
- Volume: 2021
- DOI: https://doi.org/10.5089/9781616356583.002
- Issue: 268
- Series: Country Report No. 2021/268
- Stock No: 1BRBEA2021002
- ISBN: 9781616356583
- ISSN: 1934-7685
International Monetary Fund. Western Hemisphere Dept. "Barbados: 2021 Article IV Consultation, Sixth Review Under the Extended Arrangement Under the Extended Facility, and Request for Modification of Performance Criteria-Press Release; and Staff Report", IMF Staff Country Reports 2021, 268 (2021).
Content in this bundle
- 1brbea2021002