Tourism Still Driving Barbados Economy  

 

• Tourism is leading the way as the Barbados economy continues its recovery from the COVID-19 pandemic. Central Bank Governor Cleviston Haynes reported in his third-quarter economic review that the economy grew by 10.1% in the first nine months of this year, including 9.8% growth between July and September alone.
• The forecast is for the economy to grow by 10% this year overall, followed by growth between 3.5% and 5% in 2023. However, Haynes said that predicted slower global economic activity amid the tightening of financial conditions in advanced economies was a threat to Barbados’ prospects.
• The Governor said that while the economy was not yet producing at pre-pandemic levels, “based on encouraging forward bookings, tourism is expected to sustain its rebound for the remainder of the year”.
• Importantly, visitor arrivals “continue to be dominated by the traditional source markets, with the United Kingdom leading the way, accounting for 40% of total arrivals and 71% of 2019 levels”. This outpaced the recovery from the United States and Canada which had arrivals of 56% and 49% of 2019 levels, respectively, for the nine months, he noted.
• Haynes said that as Barbados’ economic recovery continues, the government needed to continue its reforms, particularly of state-owned enterprises. “These reforms are intended to improve the quality of service while reducing the burden on the public finances and freeing up resources for needed infrastructural developments and improved resilience to climatic events,” he said.
• Most notably, better service quality in the public sector should also contribute to the overall enhancements in productivity and competitiveness in the private sector.

(Source: Nation News)