Barbados shows economic resilience through fiscal reform and investment

Barbados is demonstrating economic resilience and fiscal stability, according to a recent country brief from the African Export-Import Bank (Afreximbank). The nation has seen an average GDP growth of 5.6% between 2021 and 2026, largely driven by a resurgence in the tourism sector. Growth is projected to continue at 1.9% in 2026 and 2.3% in 2027.

Central to this economic trajectory is the IMF-backed Barbados Economic Recovery and Transformation (BERT) programme. Following the successful conclusion of the original programme in 2025, the IMF approved a new 36-month precautionary Stand-By Arrangement of USD 257 million in June 2026. This support aims to facilitate further structural reforms and maintain the country's commitment to a diversified economy.

Fiscal consolidation efforts have resulted in public debt declining from 104.1% of GDP at the end of FY2023/24 to 96% by March 2026. The government aims to reach a debt anchor of 60% of GDP by FY2035/36.

This improved credit standing is directly influencing private sector activity. The opening of the $60 million Fort Carlisle Residences, a 32-unit waterfront condominium in Bridgetown, serves as a practical example of how enhanced credit ratings have kept the cost of capital reasonable, encouraging significant private investment in the island's heritage district.