Barbados 10-Year Forecasts: A Decade Of Weak Growth Ahead

• Barbados is expected to struggle with slow growth over the coming decade, as wide current account and fiscal deficits undermine the country's ability to invest in expanding capacity. This will be the result of weak international business activity and tourism sector performance a trend Fitch expects to play out across many Caribbean economies.
• While Barbados will benefit from politically independent institutions and stable price growth due to its currency peg to the US dollar, substantial macroeconomic headwinds will remain. A wide current account deficit is projected to persist over the next decade.
• Tourism will remain a primary driver of economic activity, though the sector's growth will be muted.

(Source: Fitch)