IMF Staff Concludes Virtual Visit to Barbados
IMF News, August 28, 2020
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Bibliographic details
- Published: August 28, 2020
Mission context and scope
- Press Release No. 20/289; August 28, 2020.
- At the request of the Government of Barbados, an IMF team led by Bert van Selm conducted a staff visit via videoconferencing between August 25-28, 2020.
- Purpose: discuss implementation of Barbados’ Economic Recovery and Transformation (BERT) plan, supported by the IMF under the Extended Fund Facility (EFF).
- Washington, DC — statement summarizing the mission’s findings issued by Mr. van Selm.
- IMF Communications Department contact: PRESS OFFICER: Maria Candia Romano; Phone: +1 202 623-7100; Email: MEDIA@IMF.org.
Economic impact of COVID-19 and tourism
- The global coronavirus pandemic has severely affected economies and is causing a deep recession in Barbados.
- Tourism is expected to recover gradually through 2021.
- The COVID-19 pandemic has had a major impact on Barbados’ economy, with a double-digit decline in economic activity projected for 2020.
- Tourism effects described:
- Tourism came to a virtual standstill between March and June 2020: airlift declined precipitously, most hotels closed, and occupancy plummeted at facilities that remained open.
- In early July, the island cautiously started reopening the economy for international tourists, after the authorities effectively halted local transmission of the disease.
Program implementation and key quantitative outcomes
- Implementation of Barbados Economic Recovery and Transformation (BERT) program remains strong, despite the COVID-19 shock.
- Program targets under the Fund supported program for end-June 2020 were met.
- International reserves:
- Reached a low of US$220 million (5-6 weeks of import coverage) at end-May 2018.
- Are now in excess of US$1 billion at the end of August.
- The targets for international reserves, net domestic assets and the primary balance were met with some margin, which bodes well for meeting the end-September EFF targets.
- All indicative targets for end-June under the EFF were met.
Structural reforms and benchmarks
- Good progress continues to be made towards implementing structural reform under the EFF.
- The two structural benchmarks for end-June 2020, related to tax and customs administration, were both met.
- A revised central bank law is expected to be ready to be sent to Parliament in September.
Next steps and outlook
- The team is looking forward to conducting discussions for the fourth review under the EFF in late October.
- Mission statement emphasizes continued openness and candid discussions with the authorities and the technical team.
Press Release No. 20/289, August 28, 2020.