Barbados Targets Debt Reduction and Growth Under New IMF Roadmap
Barbados is charting a path toward long-term fiscal stability, with growth projections hitting 2.3% by 2027. Backed by a new 36-month, $257 million IMF precautionary arrangement, the nation is leveraging a resurgence in tourism and rigorous structural reforms to anchor public debt toward a 60% of GDP target by 2036.
The latest Afreximbank country brief underscores a significant economic turnaround for the island nation, which saw GDP growth average 5.6% between 2021 and 2026. This momentum follows the conclusion of the initial Barbados Economic Recovery and Transformation (BERT) programme. Current policy aims to sustain primary fiscal surpluses of 3.5%, building on the progress that saw public debt drop from 104.1% in 2023/24 to 96% by March 2026.
Trade dynamics remain a primary engine for this recovery, with total goods and services trade expected to reach $6.3 billion this year. Tourism continues to drive these figures, evidenced by a 30% year-on-year surge in cruise arrivals during early 2026. Complementing these physical trade gains, the Central Bank of Barbados recently introduced BiMPay, an instant payment system designed to bolster financial infrastructure and inclusion. Dr. Yemi Kale, Afreximbank’s Group Chief Economist, points to this combination of stable governance and modernized financial systems as a signal to international partners that Barbados is an increasingly attractive hub for trade finance and development cooperation in the Caribbean.
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