Barbados’ economy expanded by 4.4 per cent in the first nine months of this year, the largest nine month expansion since 2006, excluding the pandemic recovery period,” the Central Bank of Barbados (CBB) reported on Friday.
In its Review of the Barbados Economic Performance January to September 2023, the CBB said this performance also accounts for the 10th consecutive quarter of economic growth.
“Broad-based growth boosted tax collections, improved labour market conditions, reduced the debt-to-GDP ratio, narrowed the trade deficit, increased foreign reserve levels, and improved credit quality as well as bank profitability,” the central bank said.
Central bank Governor, Dr Kevin Greenidge, told reporters that the consistent economic expansion over the past 10 quarters demonstrates that Barbados is on a sustainable growth path.
He said after increasing by 13.8 per cent in 2022, economic growth is projected to moderate to around 4.5 per cent in 2023 which still surpasses pre-pandemic levels.
“The upcoming winter season, bolstered by events and improved air access, is expected to be very good for tourism, although high ticket prices could pose a challenge. The increase in tourism will spill over to other sectors, including distributive trade and transportation. Major construction projects slated for late 2023 will also contribute to the economy’s expansion and employment generation.”
The CBB said that forward bookings and increased seating capacity also bode well for the winter tourism season.
It said the English cricket tour of the West Indies and the opening of the new Sam Lord’s Castle (Wyndham branded resort) Hotel are expected to boost demand for the destination in the upcoming winter season.
Increased airlift into the island should bolster arrivals with the opening of a direct link to the Cayman Islands permitting more access from the United States. Airline ticket prices, however, are well above pre-pandemic levels and remain one of the downside risks to the full recovery in visitor numbers.
The CBB said that inflation is expected to moderate in the medium term in line with recent international commodity price declines. Domestic inflation should fall to five per cent or below by the end of the year given price declines in cereals, vegetable oils and dairy products.
