Barbados’s economy records six consecutive quarters of growth

The Central Bank of Barbados (CBB) says the island’s economy is on a path to recovery and economic growth of approximately ten percent is expected for 2022.

“However, the forecast is for slower global economic activity amid the tightening of financial conditions in advanced economies, the slowdown in production in China and the potential return of COVID-19 cases during the winter period,” CBB Governor, Cleviston Haynes, said as he delivered Barbados’ economic performance for the first nine months of the year.

The International Monetary Fund’s (IMF) global growth forecast is now 3.2 percent for 2022 and 2.7 percent for 2023, the weakest growth profile since the global financial crisis.

“This outlook poses a significant downside risk that has been accentuated by the uncertainty in the United Kingdom market. However, the recovery is expected to continue into 2023, predicated on a further upturn in the global tourism sector coupled with the implementation of large private and public construction projects,” Haynes said.

He told reporters that based on scenarios encompassing a weaker performance of the UK tourism market, growth is forecast to reach between 3.5 and five percent for 2023.

Haynes said future prices for energy and food have started to fall as global economic activity slows and global supply chains begin to normalize.

“These global declines will feature domestically with a lag. The local initiatives to reduce price pressures have started to bear fruit and will provide some ease until the price declines are realized. “However, significant uncertainty remains as geopolitical tensions continue to mount, with developments within major global economies, rippling across our major trading partners. The current forecast for prices is 8.8 per cent for 2022 and 3.3 per cent in 2023.”

Haynes said the Barbados economy continues to recover, as reflected in the double-digit growth achieved for the first nine months of the year.