Yesterday, 29 July 2024, Governor Dr. Kevin Greenidge delivered the Central Bank of Barbados' review of Barbados' economic performance in the first half of 2024.
The review provided an update on key economic indicators, including economic growth, the debt-to-GDP ratio, inflation, the unemployment rate, and the level of international reserves, as well as information about Government's fiscal performance in the first three months of fiscal year 2023/24 (April to June 2024).
Governor Greenidge also gave his outlook for the economy for the remainder of the year and took questions from the media and members of the public.
Below is a brief summary, with links to the full press release and YouTube video of the press conference.
Overview
Barbados' economy demonstrated robust growth in the first half of 2024, with real GDP increasing by 4.5 percent. Significant expansions in the tourism and construction sectors, underpinned by successful events such as the International Cricket Council (ICC) Men's T20 World Cup, drove this performance. Tourism recorded substantial gains in both long-stay and cruise arrivals, while construction projects, including major infrastructure developments, provided additional support.
Other key macroeconomic indicators continued to strengthen, demonstrating resilience amid global challenges. Domestic inflation moderated to 2.7 percent by end-May 2024, aided by declines in global energy and food prices. The labour market registered a low unemployment rate of 6.9 percent for the first quarter of 2024, with job growth across various sectors. The fiscal position strengthened significantly, with a primary surplus of $509 million and a fiscal surplus of $341.9 million, reflecting improved renvenue collection and disciplined expenditure management. Debt as a percentage of GDP continued to decline, reaching 105.3 percent, supported by strategic debt management and economic growth. Characterised by improvements in capital adequacy and loan quality, the financial sector remained stable. The external sector showed resilience, with the current account deficit narrowing to 2.3 percent of GDP and international reserves remaining robust.
The economic outlook remains positive, with expected continued growth in tourism and construction, alongside stable inflation and a strong external position. The fiscal stance supports debt sustainability and economic resilience.
Read the press release in full:
Watch the press conference in full:
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