Barbados’ Economic Outlook for 2026 Remains Favourable

• The Central Bank of Barbados (CBB) said Barbados’ economic outlook for 2026, and the medium term remains favourable, supported by strong fundamentals, disciplined fiscal management, and a clear transformational agenda.
• Its January–December 2025 review highlighted continued momentum in tourism, construction, and business services, underpinned by sustained public and private investment, alongside low and stable inflation and strong external buffers as key sources of resilience against external shocks.
• The CBB cautioned that execution remains the principal challenge. They stressed that sustained public- and private-sector collaboration, continued productivity gains, and timely implementation of reforms under the Barbados Economic Recovery and Transformation (BERT) 2026 programme are critical to translating macroeconomic stability into higher growth, stronger resilience, and durable improvements in living standards.
• Despite intensifying global trade tensions, Barbados recorded stable economic growth and low inflation in 2025, with real GDP expanding by 2.7%, driven mainly by tourism, business and other services, construction, and agriculture. The unemployment rate stood at 6.6% at end-Q3, jobless claims rose modestly, the 12-month moving average inflation rate slowed to 0.7% by November 2025, and point-to-point inflation increased to 1.7%, reflecting higher housing and utility costs and stronger demand for dining services.
• CBB Governor Kevin Greenidge said growth is expected to remain solid in the near term and strengthen modestly over the medium term, with real GDP forecast between 2.5%–3.0% in 2026, supported by tourism, construction, wholesale and retail trade, and business and other services. Over the medium term, growth is expected to trend toward ~3.5% per year, supported by sustained public and private investment, productivity reforms, and economic diversification under BERT 2026.

(Source: Caribbean National Weekly)