The International Monetary Fund (IMF) Executive Board has concluded the Fourth Reviews of the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) arrangements with Barbados. This decision allows Barbados to draw approximately US$19 million under the EFF and US$37 million under the RSF, bringing total disbursements to about US$93 million and US$149 million, respectively.
Barbados continues to implement its Economic Recovery and Transformation (BERT 2022) plan, which focuses on sustainable growth, fiscal stability, and climate resilience. The Barbadian economy expanded by 3.9% from January to September 2024, with improvements in tourism, business services, and construction sectors. Unemployment rates fell to their lowest since 2008 during this period.
Despite Hurricane Beryl's impact on the fishing sector and coastal infrastructure, the macroeconomic consequences are expected to be moderate. The country's external position has strengthened with a narrowing current account deficit and international reserves reaching US$1.6 billion.
All performance criteria for the fourth review of the EFF were met. The primary fiscal surplus target was achieved in the first half of FY2024/25, with public debt declining to around 105% of GDP by end-September 2024. Structural benchmarks for the fourth review were also fulfilled.
Deputy Managing Director Bo Li stated: "The implementation of Barbados’ homegrown Economic Recovery and Transformation (BERT) program and its ambitious climate policy agenda remains strong." He noted that while economic indicators are positive, vulnerabilities remain due to global shocks and natural disasters like Hurricane Beryl.
Efforts continue in fiscal reforms aimed at revenue administration improvement, public financial management enhancement, and better public investment practices. A new Electricity Supply Bill aims to increase competition in renewable energy investments. The Central Bank of Barbados is working on strategies for monitoring climate change risks.
Barbados is mobilizing climate financing with support from international partners. A recent debt-for-climate conversion aims to fund green investments in water supply resilience, environmental sustainability, and food security.