Central Bank of Barbados reports 2.7 percent real GDP growth and easing inflation in January–September 2025 economic review

The Central Bank of Barbados published its Review of the Barbados Economy for January–September 2025, reporting steady economic expansion despite ongoing global trade tensions and slower growth in several advanced economies. The review points to easing inflation, a robust external position, stronger fiscal balances and a sound financial sector. Real GDP increased by 2.7 percent, led by tourism, agriculture, construction, and business and other services. Labour market conditions improved, with unemployment at a record low of 6.1 percent at end-June (1.6 percentage points below a year earlier), while jobless claims rose 3.2 percent. Inflation moderated as import costs fell, with the 12-month moving average slowing to 0.5 percent by August; the August point-to-point rate rose to 1.2 percent on higher restaurant prices. International reserves measured 3.3 billion at end-September as increased travel credits and public- and private-sector capital inflows offset a wider merchandise deficit, a larger income deficit and lower receipts from the international financial business sector. Over the first half of the fiscal year, the primary surplus reached 574.1 million (3.8 percent of GDP) and the overall fiscal surplus 227.1 million (1.5 percent of GDP), contributing to a 2.9 percentage point decline in the debt-to-GDP ratio to 100.1 percent at end-September; the financial sector was characterised by lower loan delinquency, modest credit growth, ample liquidity and capital buffers above the regulatory minimum.