## Barbados: Staff Report for 2013 Article IV Consultation

_IMF Staff Country Reports, February 12, 2014_

## Source details

**Canonical URL:** [Barbados: Staff Report for 2013 Article IV Consultation](https://www.imf.org/en/publications/cr/issues/2016/12/31/barbados-staff-report-for-2013-article-iv-consultation-41335)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/barbados-staff-report-for-2013-article-iv-consultation-41335/index.md)
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## Bibliographic details
- Published: February 12, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475557077.002

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### Summary
- Highlights Barbados’ weak economic performance and high public debt.
- Foreign reserves are under pressure as fiscal and external imbalances widened in 2012 and further in 2013.
- Authorities announced ambitious budget consolidation proposals in 2013 aimed at strengthening the fiscal position and arresting the slide in reserves.
- Recent fiscal measures, if fully implemented, should stabilize debt levels by 2016.
- Even with full implementation, fiscal financing pressures and external sector sustainability would remain challenging.

### Key findings
- Economic performance described as weak, with widening fiscal and external imbalances in 2012 and 2013.
- Public debt identified as high and a central vulnerability.
- Foreign reserves under pressure due to the above imbalances.
- Recent fiscal measures have conditional effectiveness: full implementation is needed to achieve stabilization of debt by 2016.

### Risks and scenarios
- Downside risks are considerable.
- Failure to implement corrective policies could result in a disorderly adjustment process.
- Even under the optimistic scenario of full policy implementation, significant challenges would persist for fiscal financing and external sector sustainability.

### Policy implications and recommendations
- Urgent action required to address fiscal and external imbalances (as signaled by authorities’ 2013 consolidation proposals).
- Full implementation of announced fiscal measures is critical to stabilize debt levels by 2016.
- Given substantial downside risks, contingency planning and measures to safeguard external reserves and fiscal financing should accompany consolidation.

*Barbados: Staff Report for 2013 Article IV Consultation, February 12, 2014 — International Monetary Fund.*

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## Content in this bundle

- **Barbados 2013 Article IV Consultation, IMF Country Report No. 14/52; January 27, 2014**
  - [Barbados 2013 Article IV Consultation, IMF Country Report No. 14/52; January 27, 2014 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1452.pdf.md){rel="alternate" type="text/markdown"}
  - [Barbados 2013 Article IV Consultation, IMF Country Report No. 14/52; January 27, 2014 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1452.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/barbados-staff-report-for-2013-article-iv-consultation-41335_