IMF Completes Staff Review on Barbados

• An International Monetary Fund (IMF) team visited Barbados between February 26-29, 2024, to review recent economic developments and reform efforts and prepare the ground for the third review of the Extended Fund Facility (EFF)/Resilience and Sustainability Facility (RSF) programs.
• The IMF noted that economic activity in Barbados continued to recover strongly in 2023, driven by tourism and related sectors. Real GDP expanded by an estimated 4.4%, reaching its pre-pandemic level.
• Annual inflation also remained broadly stable despite adverse weather conditions reducing the supply of certain crops and higher prices of dining and other goods and services on account of easing international food prices.
• In terms of fiscal reform, the IMF noted that the Barbadian authorities continue making strong progress in implementing their ambitious economic reform program. Strong fiscal performance through the first three-quarters of FY2023/24 bodes well for meeting the 3.4% of GDP primary balance target for the full fiscal year, and preparation of a budget for FY2024/25 is well underway.
• Furthermore, important steps are being taken to advance the structural reform agenda. Work is currently underway on reforms to strengthen tax administration, public financial management, and the business environment while also building resilience to climate change under the RSF. Meanwhile, the significant progress made in strengthening the AML/CFT framework has enabled Barbados to exit the Financial Action Task Force grey list.

(Source: International Monetary Fund)