Barbados Will Run Significant Current Account Deficits In The Coming Years

  • Barbados will run wide current account deficits over the coming years as machinery and food imports outweigh service exports, principally from tourism.
  • It is expected that stable FDI inflows and support from multilateral lenders will provide stability to support Barbados’ external account.
  • Fitch Solutions, forecast that Barbados will maintain a significant current account deficit of 3.4% of GDP in 2019 and 3.5% of GDP in 2020, following a deficit of 3.5% in 2018.

 (Source: Fitch)