Barbadian Economy Grows But Threats Loom

• Despite a number of uncertainties that continue to threaten the economic prospects for Barbados this year, the island recorded economic growth of 11.8% for the first three months of 2022 and is on track to end the year with double digit growth, according to the latest Central Bank report. 
• The 11.8% growth in economic activity during the first three months was led by the tourism sector as pent-up travel demands translated into the highest level of long-stay arrivals since the onset of the pandemic. 
• Travel from the United Kingdom dominated the upswing in tourism demand, accounting for more than half of the arrivals, the equivalent of 75% of 2019 levels. In spite of the strong performance, long-stay arrivals were equivalent to just 55% of 2019’s record level as demand from the United States, Canadian and Caribbean markets recovered more slowly. 
• In spite of the further anticipated rebound, with uncertainties relating to the ongoing COVID-19 pandemic, supply chain disruptions and the war in Ukraine, the Central Bank Governor has said that Barbados’ bread and butter tourism industry could be significantly impacted, resulting in less than ideal economic performance.

(Sources: Barbados Today, CBB & NCBCM)