BRIDGETOWN, Barbados, CMC – A delegation from the Worldwide Financial Fund (IMF) Friday ended a three-day go to to Barbados aimed toward reviewing latest financial developments and reform efforts and to organize the bottom for the fifth and remaining opinions of the Prolonged Fund Facility (EFF) / Resilience and Sustainability Facility (RSF) applications.
Following the fourth overview of the EFF and the RSF in December final yr, it allowed for the island to obtain a direct disbursement equal to about US$19 million below the EFF and about US$37 million below the RSF.
The delegation’s head, Michael Perks, stated that Barbados’ financial progress remained sturdy in 2024 and that actual gross home product (GDP) progress is estimated at 4 p.c, pushed by enterprise companies, tourism, and building.
He stated inflation moderated to a mean of 1.4 p.c, reflecting an easing of worldwide commodity costs and costs of home items and companies.
“The exterior place continued to strengthen, with the present account deficit narrowing to 4.5 p.c of GDP from 8.6 p.c in 2023. Worldwide reserves stay ample at US$1.6 billion, equal to over seven months of imports, offering continued robust assist to the alternate price peg.”
Perks stated the near-term financial outlook stays constructive, however dangers stay excessive and tilted to the draw back, given Barbados’ vulnerability to international shocks and pure disasters.
“The authorities proceed to make robust progress in implementing their formidable financial reform program. Targets for end-December 2024 below the EFF have been met. Fiscal efficiency stays robust, with the first steadiness reaching 5.3 p.c of GDP by way of December, leaving the authorities on monitor to satisfy the three.8 p.c GDP fiscal goal for the monetary yr 2024/25.”
Perks stated preparation of the 2025/26 funds is now properly underway. Public debt declined near 100% of GDP on the finish of 2024, and the authorities stay firmly dedicated to bringing it right down to 60 p.c of GDP by the monetary years 2035/36.
“Structural reform efforts proceed to advance, supported by IMF technical help, together with actions to strengthen customs administration, the framework for public-private partnerships, and the Central Financial institution of Barbados’ liquidity forecasting.
“The authorities are additionally making progress with the implementation of the RSF reform measures for the final overview,” Perks stated, including that the group is trying ahead to conducting discussions for the fifth and remaining opinions below the EFF and RSF in Might.
