The economy grew by 2.7 per cent in the first nine months of the year.
Central Bank of Barbados Governor Dr Kevin Greenidge reported this today in his third quarter press conference at the Courtney Blackman Grande Salle, Tom Adams Financial Centre.
“The economy expanded steadily during the first nine months of 2025, even as global trade tensions continued and growth in several advanced economies slowed. Real GDP increased by 2.7 percent, led by tourism, agriculture, construction, and business and other services,” Greenidge reported.
The Governor reported positive outcomes for the job market, inflation, the international reserves, and Government’s fiscal performance
“Labour market conditions improved, with the unemployment rate at a record low of 6.1 per cent at end-June, 1.6 percentage points below a year earlier, while jobless claims edged up 3.2 per cent,” he said.
“Inflation eased as import costs fell. The 12-month moving average rate slowed to 0.5 percent by August, with smaller price increases for food, non-alcoholic beverages and health, and lower prices for housing, utilities, furnishings, transport, and recreational and cultural services.
“The August point-to-point rate ticked up to 1.2 percent on higher restaurant prices, but underlying inflation remained subdued.”
Greenidge added: “The external position remained robust on strong tourism receipts and higher long-term financing.
International reserves measured $3.3 billion at end-September, as increased travel credits and capital inflows to both the public and private sectors offset a wider merchandise deficit, a larger income deficit, and lower receipts from the international financial business sector.”
He also shared that Government “recorded stronger fiscal balances and reduced the debt ratio during the first half of the fiscal year”.
“Higher tax revenues, particularly from corporations, outpaced spending on wages and salaries, goods and services, and capital projects,” he said.
“The primary surplus reached $574.1 million, 3.8 per cent of GDP, while the fiscal surplus rose to $227.1 million, 1.5 per cent of GDP. The debt-to-GDP ratio declined by 2.9 percentage points to 100.1 per cent at end-September.”
Greenidge added that “the financial sector remained sound, with lower loan delinquency, modest credit growth, ample liquidity, and capital buffers well above the regulatory minimum”. (SC)
