Barbados economy records 3.9 per cent growth despite challenges

The Barbados economy posted 3.9 per cent growth for the first nine months of the year, defying global economic pressures and the adverse impact of Hurricane Beryl.

Central Bank Governor Dr Kevin Greenidge on Wednesday delivered an upbeat report that revealed the sustained growth was driven by robust activity in tourism, business services and construction. He also pointed to strong performances in other key economic indicators.

“Inflation moderated, unemployment fell, and the country’s external position remained robust, marked by the highest end-September international reserves level, equivalent to 31.2 weeks of imports of goods and services,” he said.

Looking ahead, Greenidge said the economic outlook remains positive despite growing political uncertainty.

He is forecasting growth of 3.8 per cent through to yearend, driven by ongoing private and public sector investments, particularly in tourism and utility infrastructure.

“The tourism sector shows strong potential for the winter season, with forward bookings for air travel in the fourth quarter up 9 per cent over the same period in 2023. The England cricket tour of the West Indies should boost visitor arrivals while cruise activity is expected to surpass last year’s figures, given an 11.5 per cent increase in scheduled cruise calls for the final quarter.

The central bank governor however cautioned that several downside risks could temper these projections, saying, “Slower-than-expected global growth may reduce export demand and tourism from key source markets. High airline ticket prices may also dampen tourism demand, limiting the sector’s growth. Additionally, climate-related risks remain significant, as increased hurricane, flood, and storm activity could disrupt travel, damage infrastructure, and weaken the agricultural sector.” (SD)

Read the full story in Wednesday’s e-paper