Barbados better placed to withstand economic risks, says Greenidge

B arbados is better positioned to withstand global economic risks, Central Bank Governor Dr Kevin Greenidge insisted on Tuesday, even as growth slows to around two per cent after the rapid post-pandemic recovery. He sought to allay concerns about the country’s outlook as he commented on the African Export-Import Bank’s (Afreximbank) latest economic assessment of Barbados. He noted that Afreximbank and the Central Bank broadly agreed on the country’s economic performance and outlook. Dr Greenidge told Barbados TODAY : “Afreximbank’s assessment is very much in line with the Central Bank’s view that the Barbadian economy remains resilient, with strong macroeconomic buffers and a solid reform foundation, but that growth has now moved from the very rapid post-pandemic recovery phase to a more normal and sustainable pace. “Afreximbank is projecting growth of 1. 9 per cent for 2026.

That is effectively consistent with the Central Bank’s current projection of approximately two per cent. Our assessment at the half-year was that the economy grew by 1. 4 per cent during the first six months, with domestic sectors such as business and other services and wholesale and retail trade doing much of the work “Tourism remained an important pillar, but it was softer than we had initially expected, particularly as shorter stays reduced visitor nights and higher airfares and reduced capacity affected some key markets. ” He continued: “Afreximbank’s fiscal assessment is also broadly consistent with ours. Barbados has maintained strong primary surpluses and public debt continues to decline. One difference is simply the date of the data being used. The 96 per cent debt ratio cited in the brief relates to the end of March data vintage. The bank’s more recent estimate puts gross public sector debt…