IMF Staff Concludes Virtual Visit to Barbados

IMF News, August 27, 2021

Source details

Press Release No. 21/250; August 27, 2021.
IMF team led by Bert van Selm conducted a staff visit via videoconferencing between August 24-27, 2021.
Visit requested by the Government of Barbados to discuss implementation of Barbados’ Economic Recovery and Transformation (BERT) plan, supported by the IMF under the Extended Fund Facility (EFF).
The virtual staff visit will not result in a Board discussion.

"Barbados’ economy remains severely depressed by the ongoing global coronavirus pandemic."
Tourism activity has picked up in recent months but "remains at a fraction of normal levels."
The economy is estimated to have grown 5½ percent in the second quarter of 2021 (relative to Q2 2020).
A category 1 hurricane (Elsa) struck Barbados in July and "caused significant damage to the island’s housing."
Economic growth for the second half of 2021 and the first half of 2022 is premised on a gradual recovery of tourism.
Risks to the outlook remain.

Despite the challenging environment, Barbados "continues to make good progress in implementing its ambitious and comprehensive economic reform program, while expanding critical investments in social protection."
Indicative targets under the Fund-supported program for end-June 2021 were met.
A medium-term fiscal framework was tabled in parliament to enhance transparency and accountability in fiscal policy, while retaining sufficient flexibility to respond to the pandemic and other economic shocks.
The team is looking forward to conducting discussions for the sixth review under the EFF in November.

"Structural reforms are ongoing, and structural benchmarks under the EFF were met."
Government developed plans to recapitalize the Central Bank of Barbados.
Plans address medium and long-term challenges for the National Insurance Scheme (NIS) stemming from the debt restructuring and the COVID pandemic, and recapitalization of the NIS has started.
The government is expanding critical investments in social protection.

The global SDR allocation that became effective on August 23, 2021 included an allocation of about US$129 million to Barbados.
International reserves have been further boosted by the recent global SDR allocation, "to more than US$1.4 billion."

"The team is looking forward to conducting discussions for the sixth review under the EFF in November and would like to thank the authorities and the technical team for their openness and candid discussions."
IMF Communications Department — MEDIA RELATIONS; PRESS OFFICER: David Sharrock; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson

International Monetary Fund — Press Release No. 21/250, August 27, 2021.