Foreign reserves dip in third quarter but stay ‘well above’ benchmark

B riefing journalists on the bank’s third-quarter report, governor Dr Kevin Greenidge said real gross domestic product (GDP) had grown by an estimated 1. 4 per cent, compared with 2. 3 per cent over the same period in 2025. Growth in the non-traded sector, which produces goods and services consumed domestically, offset weaker performance in the traded sectors, he said. Domestic businesses kept the economy growing, while tourism and manufacturing shrank. The non-traded sector grew by 1. 8 per cent. Business services and wholesale and retail trade drove the growth, offsetting a slight fall in construction. The traded sector, which earns foreign exchange, contracted by 0. 6 per cent as tourism and manufacturing slowed. The Central Bank said this left the economy more dependent on domestic activity, with growth coming from fewer industries at a difficult time for the global economy.

On the bread-and-butter tourism industry, the governor reported softening performance through the third quarter. More visitors came to Barbados, but they stayed shorter periods, reducing tourism’s contribution to the economy. Long-stay arrivals rose slightly, by 0. 2 per cent, and cruise passengers calling here rose by 17. 3 per cent, but because visitors spent fewer nights, tourism’s contribution fell by 1. 2 per cent. Hotels earned more from rooms as rates rose, but fewer rooms were occupied. The Central Bank said the figures showed Barbados needed visitors to spend more, not just attract more. The country’s international reserves took a slight hit, which Dr Greenidge insisted was not a concern at this time, even as foreign investment declined. Central Bank Governor Dr Kevin Greenidge (File photo) He said: “Barbados maintained substantial international reserves notwithstanding a decline in external…