IMF Staff Concludes Visit to Barbados
IMF News, February 16, 2023
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Bibliographic details
- Published: February 16, 2023
Mission context and timing
- IMF team led by Pablo Morra visited Bridgetown between February 13-16, 2023.
- Press Release No. 23/43.
- Statement reflects views of IMF staff and does not necessarily represent the views of the IMF’s Executive Board.
- This staff visit will not result in a Board discussion.
Economic performance and outlook
- Barbados contracted by 14 percent in 2020-2021.
- Real GDP growth estimated at 10 percent in 2022.
- The economic recovery is expected to continue in 2023.
- Recovery driven by the tourism sector.
IMF-supported program implementation and targets
- Implementation of the updated Barbados Economic Recovery and Transformation (BERT 2022) program is ongoing.
- Program supported by the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF).
- Program targets under the Fund-supported program for end-December 2022 were met.
- The team is looking forward to conducting discussions for the first review under the EFF and the RSF in May.
External buffers and fiscal position
- International reserves reached US$1.4 billion at the end of 2022.
- US$1.4 billion at the end of 2022 is equivalent to about 7 months of imports.
- Fiscal performance was strong in the first three quarters of fiscal year 2022/23.
- Strong fiscal performance bodes well for meeting the 2 percent of GDP primary balance target for the full fiscal year.
- Preparation of a budget for fiscal year 2023/24 is well underway.
Structural reforms and resilience measures
- Several steps taken to advance the structural reform agenda, including:
- Actions to strengthen and modernize procedures for granting and managing duty and tax exemptions.
- Measures to safeguard the sustainability of the National Insurance Fund.
- Work underway on:
- Reforms to enhance the sustainability of the public sector pension scheme.
- Measures to strengthen tax administration.
- Reform measures to build resilience to climate change under the RSF.
Mission statement excerpts and acknowledgments
- From Pablo Morra: “Barbados faced challenging conditions in recent years as a result of the global pandemic, natural disasters, and the rise in global food and fuel prices. After contracting by 14 percent in 2020-2021, economic activity is recovering strongly, driven by the tourism sector, with real GDP growth estimated at 10 percent in 2022. The economic recovery is expected to continue in 2023.”
- The team thanked the authorities and the technical team for their openness and candid discussions.
Source: IMF Staff Concludes Visit to Barbados (Press Release No. 23/43, February 16, 2023).