Friday, July 4, 2025
spot_img
spot_img
HomeBusinessCentral Bank of Barbados' review of Barbados' economy: January-March 2025

Central Bank of Barbados’ review of Barbados’ economy: January-March 2025

By Central Bank of Barbados

Barbados maintained its economic growth momentum in the first quarter of 2025. Real GDP increased by an estimated 2.6 percent, led by strong performances in tourism, business services and construction. Inflation continued its downward trend despite elevated global trade tensions. Unemployment claims fell during January and February, but temporary hotel closures in March, linked to major renovation projects, reversed this gain. Economic growth, together with stronger fiscal outcomes for FY2024/25, contributed to a further reduction in the debt-to-GDP ratio.

Gross international reserves increased, supported by private capital inflows. Reserves rose by $194.6 million to reach $3.4 billion at the end of March 2025, equivalent to 32.4 weeks of import cover. Although the current account deficit widened due to higher merchandise imports and income outflows, stronger private investment, particularly in tourism-related projects, more than offset those pressures.

Government met its fiscal targets for FY 2024/25 supported by stronger revenue collections and controlled spending. The primary surplus reached $662.8 million, or 4.6 percent of GDP, for the fiscal year. Corporation tax collections increased significantly, reflecting structural reforms and improved corporate profitability. Despite higher capital outlays and interest costs, the fiscal deficit narrowed to $87.1 million, or 0.6 percent of GDP.

The financial system remained stable and continued to support credit growth. Capital buffers remained well above regulatory requirements, non-performing loans (NPLs) declined, and liquidity levels stayed elevated. Credit to businesses and households increased, supported by strong deposit growth, ample liquidity, and sustained profitability in the banking sector.

spot_img
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img
spot_img

Caribbean News

Cayman Islands government announces new organisational chart

By CIG Public Relations GEORGETOWN, Cayman Islands - The Cayman Islands Government has published its new organisational chart, reflecting the restructured framework of Ministries and Portfolios...

Global News

The status of youth in Agrifood Systems: New FAO report shines light on pitfalls and prospects for 1.3 billion young people

As key agents of change, the current generation of young people must increase food production, replace an aging workforce, and adapt to increasing...