The Barbados economy has grown again, with real gross domestic product (GDP) expanding by an estimated 3.9 per cent between January and September.
Central Bank of Barbados Governor Dr Kevin Greenidge says this continued “steady path of economic growth and resilience” is despite global economic uncertainties and the negative consequences of Hurricane Beryl.
“Real GDP advanced by 3.9 per cent during the first nine months of 2024, driven by key sectors such as tourism, business services, and construction,” he reported today during the Central Bank’s third quarter economic review at the Courtney Blackman Grande Salle.
“Inflation moderated, unemployment fell, and the country’s external position remained robust, marked by the highest end-September international reserves level, equivalent to 31.2 weeks of imports of goods and services.”
The Governor said strategic investments and fiscal discipline supported economic stability.
“Higher revenues from direct taxes – particularly corporation and property taxes – along with increased value added tax receipts, have enabled the Government to boost public transfers and investments in critical sectors such as education and in digitisation efforts aimed at improving public service delivery,” he reported.
“Outlays on innovation, such as the establishment of a new digital innovation and health centre, have also been prioritised to strengthen Barbados’ future growth prospects.”
The Governor also informed the country that Government’s fiscal operations resulted in a surplus and reduced the debt-to-GDP ratio.
“A half- year (April to September) primary surplus of $581.9 million, or four per cent of GDP, contributed to a steady decline in the debt-to-GDP ratio, which now stands at 105.6 per cent,” he said.
“This achievement reflects Barbados’ resilience in managing external shocks while continuing to reduce its reliance on new debt. By controlling expenditures and directing resources towards long-term growth initiatives, Barbados has reinforced its ability to navigate global challenges and secure sustainable development.”
Looking ahead, the Central Bank is predicting overall economic growth this year of 3.8 per cent, which is expected to be driven by sustained activity in tourism, construction, and business services.
“While external risks such as global commodity price fluctuations and geopolitical uncertainties remain, the country’s focus on strategic investments and fiscal prudence is anticipated to support further stability and resilience,” Greenidge said. (SC)
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