Barbados 

Barbados country policy

Policy established 30 March 2010

• No Restrictions
• The country ceiling is 500 mln euro
• Early warning signal 50 mln euro
• - of which was used as at 2011-08-31 26 mln euro

Country class: 4

Barbados country facts

Atradius Dutch State Business Economic Research
Country Report last updated :  10 July 2011
Country :  BARBADOS

Political Situation
Stable

Head of state
QEII, represented by a governor-general.

Form of government
Government of the Democratic Labour Party (DLP), headed by p.m. Freundel Stuart.

Internal Economic Situation
Weak Public Finance

General situation
Barbados has favourable economic and social indicators thanks to stable political institutions, good management and successful diversification of the economic base from sugar output to tourism, financial services and light industries (electronic components). But since 2008 the economy has been in recession, initially home made (urgent fiscal measures), in 2009 also due to the world recession (esp. in the USA). In 2011 moderate recovery thanks to a rebound in tourism and subsequently domestic consumer demand. Relatively high inflation (appr. 6% p.a.) and unemployment (>10%). Financial sector badly hit by the global crisis and weak domestic demand. Relatively low corruption.

External Economic Situation
High Current Account Deficits

Main sources of foreign exchange
Tourism (60% of forex revenues), electronics and other light manufactures, sugar.

Main foreign markets
Latin America (60%), USA (18%), EU (17%).

Main expenses of foreign exchange
Consumer goods (38%), intermediate goods (43%).
 

Balance of payments
High current account deficits are illustrating domestic overspending. Stable currency peg of the B$ to the US$.