Pandemic, Slow Recovery Pose Risks To Barbadian Ruling Party In Coming Years

• An increase in COVID-19 cases in Barbados poses downside risks to public support for Prime Minister Mia Mottley and the ruling, center-left Barbados Labour Party (BLP), as the recent surge of cases will likely delay the country’s economic recovery.
• The continued spread of the disease also implies that the Mottley government will look to implement significant fiscal consolidation measures in the medium term to comply with the country’s IMF program.
• The combination of a national lockdown in February 2021, economic hardship, and the continued spread of COVID-19 increase the risk of widespread protests in the coming months.
• As a result, Fitch Solutions has revised down Barbados’ score in its Short-Term Political Risk Index (STPRI) to 71.5 out of 100, from 72.1 previously.

(Source: Fitch Solutions