Barbados to maintain sustaining economic growth and build resilience in 2024

In the second half of 2024, Barbados will continue to push the rate of economic growth, and it expects to reach approximately 3.9 percent. This growth is mainly due to more than two times increase in tourism leading to credits growth of both the traded and non-traded transactions sectors.

These have been forecasted to be driven by the privatization and other improvement in infrastructure and renewable energy, digital services, public utilities, and education in the short term to medium term models. There will be more investments in these sectors being made by both private and public entities.

Tourist arrivals are expected to exceed pre-COVID levels with the Crop Over festival, and more hotel flight connections. Major market arrivals for the next year are already up by 18.1 percent than the previous year and depict the great hope of the tourism product of Barbados.

Cruise operations are also gradually reviving depending on the increase in summer cruise deployment and more cruise calls for the last quarter of the year.

According to World Economic Outlook (WEO), world growth rate is expected to be at 3.2 percent for this year, which is below the average of 3.8 percent, recorded between the years 2000- 2019.

This slower growth at the global level might in some way affect Barbados export and tourism. Also, high airline ticket prices as well as environmental factors such as hurricanes and floods are some of the major threats to tourism and agriculture.

Domestic inflation outlook for the nation is to hover within the range of 3 – 3.5 percent by the end of 2024 from the global competitive trends in food and oil prices. However, future changes in this figure may vary due to the threat of actual and geopolitical tensions, which leads to changes in the price of oil.

Overall, Barbados’ external balance of payment position appears healthy, sustained by robust tourist arrivals and foreign investments, mostly in construction and in the tourism sectors. Electric vehicles and products in general will assist to reduce the effects of fluctuating fuel prices in the economy.

Stability of the financial system is predicted to be achieved with small levels of non-performing loans and good profitability. Stronger economic activity should boost the demand for credit and deposits.

For Barbados to achieve inclusive and sustainable growth, the nation needs cooperation across sectors, innovations, increased productivity as well as resilience. By working together through strategic investment, foundation for the type of future to which all Barbadians aspire, can be paved.