Tourism Recovery To Moderately Narrow Barbadian Current Account Deficit In 2022

  • Rebounding tourism activity in Barbados in Q421, 2022 will underpin stronger services exports and narrow the current account deficit. 
  • Fitch Solutions has revised its 2021 and 2022 current account deficit forecasts to 4.7% of GDP and 3.0%, from 5.0% and 3.2% previously, as remittance inflows surprised to the upside in H121. 
  • That said, rising import demand in 2022, combined with slowing remittance inflows will partially offset the impact of increased services exports.

(Source: Fitch Solutions)