IMF Staff Concludes Virtual Visit to Barbados

IMF News, February 11, 2022

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IMF team led by Bert van Selm conducted a staff visit via videoconferencing from February 7-11, 2022, at the request of the Government of Barbados.
The visit was a virtual staff visit and will not result in a Board discussion.
The statement summarizes preliminary findings of the IMF staff; the views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

Real GDP growth for 2021: 1.4 percent.
Real GDP growth in Q4 2021 (over the same quarter in 2020): 11½ percent.
International reserves: reached US$1.5 billion at the end of 2021; had reached a low of US$220 million at end-May 2018.
Fiscal position: Barbados recorded a small ½ percent of GDP primary surplus over the first three quarters of FY2021/22.
Outlook: A gradual economic recovery is expected over the medium term; risks to the outlook remain high.

Implementation of the Barbados Economic Recovery and Transformation (BERT) program remains strong despite the COVID-19 shock.
All indicative targets for end-December under the Extended Fund Facility (EFF) were met.
The primary balance target for the full fiscal year: minus 1 percent of GDP.
Preparation of a budget for FY2022/23 is well underway.

Fair Credit Reporting Act: adopted by parliament in December; will support financial sector development.
Procedural fiscal rule: Finance Minister issued regulations in December—a key milestone toward enhancing fiscal sustainability.
Barbados Customs and Excise Department: took steps to improve performance management, risk management, and trade facilitation during 2021.
Public sector pension scheme: work has been initiated on reforms to enhance sustainability.
Social protection: critical investments have been expanded alongside the reform program.

The IMF team looks forward to conducting discussions for the seventh review under the EFF in May.
The IMF team thanked the authorities and the technical team for their openness and candid discussions.

IMF Press Release No. 22/32, February 11, 2022.