Barbados’ BERT 2026 Targets Productivity Boost

• With labour productivity growth averaging just 0.8% annually since 2018, reflecting persistent inefficiencies in public administration, low technological diffusion in key industries and skills mismatches in the labour market, the Government of Barbados (Barbados) is seeking to boost productivity under the Barbados Economic Recovery and Transformation plan 2026 (BERT 2026).
• Enhancing productivity and competitiveness is Pillar 1 under BERT 2026. The plan is to raise economy-wide productivity through digital public infrastructure, build new export engines through innovation and reindustrialisation, and strengthen the institutional capacity to deliver complex reforms at speed.
• Without a decisive productivity agenda, including investments in innovation, digital skills, and regulatory streamlining, Barbados risks reverting to a low-growth path despite macroeconomic stabilisation. The BERT 2026 plan noted that raising productivity was “the single most important lever for unlocking higher, sustainable growth in Barbados”
• The new economic reform plan flagged productivity constraints, stating that “the foundation of long-term economic growth is productivity, and in this area, Barbados’ performance remains suboptimal”. As such, the government is planning to establish a small, empowered Productivity Delivery Unit, operating on a GovTech-style delivery model, “to close the implementation capacity gap identified across high-friction business and citizen processes”.
• The new Productivity Delivery Unit will focus on end-to-end process redesign, automation, and key performance indicators reporting across priority journeys, including permits, customs clearance, construction approvals, company registration, and work permits. Its mandate will be to accelerate execution, improve service outcomes, and ensure that productivity reforms translate into measurable results.
• Other key reforms outlined include the full operationalisation of the Barbados Electronic Single Window to reduce trade friction and processing times; implementation of the second phase of Business Barbados modernization and merging business registration, payment, and verification processes into a single digital platform. Expansion of the Trusted Trader Programme and digitisation of customs and logistics infrastructure; strengthening of the Investment Facilitation Centre and the launch of the Barbados Investment Plan, which targets sectors with high growth and export potential, such as logistics, high-end tourism, agro-processing, blue economy industries, and renewable energy services are also key reforms being considered, alongside implementation of a Single Digital ID and Business Identity System, supported by legislative and cybersecurity reforms, etc.
• Finally, productivity is not only a function of technology and regulation but also of a healthy and resilient workforce. Rising levels of illness and absenteeism erode output and increase social insurance costs, with the National Insurance and Social Security (NIS) sickness benefits alone amounting to $21Mn in just six months. BERT 2026 will therefore also integrate health and wellness as a core productivity driver.

(Source: Nation News)