IMF team preps for comprehensive economic review

An International Monetary Fund (IMF) team has set the stage for a comprehensive review of the Barbados economy, set to begin on November 1.

The preliminary check-in involved a series of virtual meetings held on Monday, during which discussions were conducted with key government departments, including the Central Bank of Barbados.

Central Bank Governor Dr Kevin Greenidge explained the purpose of these meetings is to “provide an update on the BERT [Barbados Economic Recovery and Transformation] macroeconomic framework, including performance data, forecasts, and progress on policy measures”.

He noted that this routine process is essential for ensuring a smooth exchange of information ahead of each Review Mission, although no public communique will follow this updating meeting.

The IMF team also met with the Barbados Revenue Authority (BRA), the Customs and Excise Department, and various ministries, including Finance and Economic Affairs, Energy and Business Development, and the Treasury Department.

In June, the IMF’s Executive Board concluded the Third Review of the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) arrangements with Barbados, allowing the government to draw approximately US$19 million ($38 million) under the EFF and about US$37 million ($74 million) under the RSF. This brings total disbursements to US$75 million ($150 million) under the EFF and US$112 million ($224 million) under the RSF.

The IMF reported that the Barbadian economy grew by an estimated 4.4 per cent in 2023. Looking ahead, GDP growth is expected to remain robust in 2024, bolstered by further increases in tourist arrivals.

In his second quarter review, Dr Greenidge reported a solid 4.5 per cent real growth, and projected a growth rate of four per cent for the full year.