Barbados records 2.5% economic growth, driven by tourism and construction
Key Points(5)
- The Barbadian economy grew by 2.5 per cent in the first half of 2025, fuelled by gains in tourism, construction, and business services, according to the Central Bank of Barbados.
- Governor Kevin Greenidge delivered the mid-year economic report on Friday, describing the outlook as “positive” and projecting full-year growth of approximately 2.7 per cent.
- “We expect to continue into the full year,” Greenidge said.
- Tourism remained a key driver of the economy.
- Long-stay visitor arrivals increased by 3.3 per cent, with the United States and European markets recording gains of 9.8 and 14.8 per cent respectively.
The Barbadian economy grew by 2.5 per cent in the first half of 2025, fuelled by gains in tourism, construction, and business services, according to the Central Bank of Barbados.
Governor Kevin Greenidge delivered the mid-year economic report on Friday, describing the outlook as “positive” and projecting full-year growth of approximately 2.7 per cent.
“We expect to continue into the full year,” Greenidge said. “That is broadly based on momentum in tourism, construction, business and other services, and wholesale and retail.”
The Governor added that over the medium term, economic growth is expected to average around 3 per cent, supported by tourism diversification, infrastructure upgrades, and advances in digital transformation.
Tourism remained a key driver of the economy. Long-stay visitor arrivals increased by 3.3 per cent, with the United States and European markets recording gains of 9.8 and 14.8 per cent respectively. Cruise tourism also rebounded strongly, with passenger arrivals jumping 34.8 per cent to 472,875.
Barbados’ international reserves hit a record high of $3.9 billion, providing 37.4 weeks of import cover—well above the international benchmark.
Inflation slowed considerably to 0.5 per cent, while unemployment declined to 6.3 per cent in the first quarter. On the fiscal side, the Government posted a $372.9 million overall surplus and a primary surplus of $530.9 million. The country’s debt-to-GDP ratio also fell to 102 per cent.
Greenidge said the figures reflected continued resilience and steady progress in stabilizing and growing the economy.
