The Central Bank of Barbados published its Review of Barbados’ Economy for January–June 2025, estimating real GDP growth of 2.5% in the first half of the year despite heightened global risks. Activity was driven by construction, business and other services, wholesale and retail trade, and tourism, while the unemployment rate fell to a record low of 6.3% in the first quarter. Barbados’ external position improved as foreign investment rose sharply and tourism performance remained strong, increasing international reserves by 695.2 million to a record 3.9 billion, equivalent to 37.4 weeks of import cover. These inflows offset a widening current account deficit linked to higher merchandise imports, increased profit repatriation and a marginal decline in corporation tax receipts from financial global business companies. Fiscal outcomes strengthened in April to June FY2025/26, with a fiscal surplus of 372.9 million (2.4% of GDP) and a primary surplus of 530.9 million (3.5% of GDP), contributing to a decline in the debt-to-GDP ratio to 102%. The financial sector remained stable and well capitalised, with modest private sector credit growth, sustained liquidity from deposit growth, and deposit-taking institutions maintaining capital buffers above the regulatory minimum.
Central Bank of Barbados 2025-07-25
Central Bank of Barbados reports 2.5% real GDP growth and record 3.9 billion international reserves in January to June 2025 review
The Central Bank of Barbados reported a 2.5% real GDP growth for January–June 2025, driven by construction, services, trade, and tourism, with unemployment at a record low of 6.3%. Foreign investment and strong tourism boosted international reserves to 3.9 billion BBD, despite a widening current account deficit. Fiscal outcomes improved with a surplus of 372.9 million BBD, reducing the debt-to-GDP ratio to 102%, while the financial sector remained stable.