Barbados Central Bank Cuts 2025 Growth Forecast Amid Global Economic Pressures

• The Central Bank of Barbados has lowered its growth projection for 2025 to 2.7%, down from the 3.0% forecast issued earlier this year, citing mounting global economic pressures and signs of slowing momentum in key sectors.
• In its economic review for the first quarter of the year, the Bank reported that the economy expanded by 2.6% between January and March, led primarily by tourism, construction, and business and professional services.
• Governor Dr Kevin Greenidge described the domestic fundamentals as “solid” but underscored that the Bank has revised its inflation forecast upward, now expecting the 12-month average rate to range between 1.7% and 3.5%, compared to earlier projections of 1.5% to 2.5%.
• He attributed this to the potential impact of global trade tensions, shipping disruptions, and adverse weather conditions affecting food production. “There are risks that could affect both prices and growth,” Greenidge noted as he presented the report.
• He further pointed to uncertainties stemming from the ongoing US-China trade dispute and the possibility of renewed supply chain shocks. Despite these risks, the Bank reported that international reserves remained healthy at $3.4Bn, or 32.4 weeks of import cover. It also noted that unemployment had declined to 7.1% by September 2024, based on data from the NIS claims, and that the government posted a primary surplus of $662.8Mn, or 4.6% of GDP.

(Source: Barbados Today)