BPSA cites steady growth but flags risks to outlook

A key private sector spokesman said on Wednesday that continued economic growth and a strengthening fiscal position are bolstering investor confidence, but warned that global instability, rising energy prices and crime would continue to pose risks to the island’s outlook.

The assessment came from Barbados Private Sector Association (BPSA) Chairman James Jimmy Clarke following the release of the Central Bank of Barbados’ review of the economy for January to March.

In a statement, Clarke said the association remained encouraged by the country’s continued economic performance, including another quarter of GDP growth and improvements in labour market conditions.

The Central Bank estimated that the economy expanded by 1.7 per cent during the first quarter of the year, driven largely by sustained activity in tourism, construction, business and other services.

“Overall, the attainment of successive economic growth of the economy provides further indication of stable economic performance, an important indicator to building investor confidence in the local economy,” Clarke said.

“We anticipate that Barbados will maintain its attractiveness to private sector investors.”

The BPSA also highlighted what it described as another quarter of strong fiscal performance.

According to the association, the primary surplus for the 2025/2026 financial year reached $647m, equivalent to four per cent of GDP, while the overall deficit narrowed to $58.3m.

As a result, Barbados’ debt-to-GDP ratio declined by 2.7 percentage points to 94.6 per cent at the end of the financial year.

Clarke also noted that although international reserves were lower than in the previous reporting period, they remained significant at $3 bn at the end of March 2026, representing 25.5 weeks of import cover.

The BPSA further noted the country’s contained inflation and improved labour market indicators as positive signs for the economy.

But Clarke acknowledged that Barbados continues to face several external and domestic challenges, including geopolitical tensions, climate change pressures, rising energy prices and crime.

“The private sector will continue to work with the other social partnerships in the fight to ensure that socially, Barbados will not be negatively impacted by crime and gun violence,” he said.

“As we face global geopolitical tensions, rising energy prices, the impacts of climate change, and concomitant social pressures causing higher levels of uncertainty, the private sector hopes for continued national resilience and stable economic performance and growth.”

(SM)