IMF Staff Country Reports

This paper analyzes Barbados’s Fourth Review under the Extended Arrangement under the Extended Fund Facility and the Arrangement under the Resilience and Sustainability Facility. Barbados’ economic growth has remained robust in 2024 driven by strong tourism, business services, and construction. Inflation has moderated and the external position has continued to strengthen, while the public debt-to-gross domestic product ratio has continued to decline. The Barbadian economy expanded by 3.9 percent year-on-year between January and September 2024, driven by tourism, business services and construction. In this context, labor market conditions improved, with unemployment in the first half of the year falling to its lowest level since 2008. The authorities are advancing their ambitious climate policy agenda. A new Electricity Supply Bill has been tabled to enhance competition in the electricity market and encourage local participation in renewable energy investment.