The Democratice Labour Party (DLP) has chided the Mia Amor Mottley administration for continued reliance on a “narrow growth model” and over-reliance on tourism and construction.
DLP spokesperson on finance and economic affairs, Senator Ryan Walters, said the first quarter economic review presented by Central Bank Governor Dr The Most Honourable Kevin Greenidge on Wednesday, was not being felt at the micro level.
“Ultimately, while economic growth has been consistent, it is not being sufficiently reflected in the social infrastructure or lived experience of many Barbadians. Growth without transparency, diversification and tangible improvements in national development cannot be considered fully secure,” he pointed out in a media statement.
During his review, Greenidge said Barbados had seen 20 consecutive quarters of growth, low inflation, falling debt and there were $3 billion in reserves.
“The Barbados economy’s performance for the first quarter reinforced the progress achieved over the recent years. Macroeconomic stability has been maintained, supported by broad-based economic expansion, fiscal sustainability, healthy international reserves and a resilient financial system. The early first quarter performance also points to an economy that has retained its footing, underpinned by sustained policy discipline and the rebuilding of critical buffers,” he said.
The Governor reported that the economy grew by 1.7 per cent during the first quarter, inflation stood at 1.1 per cent and the unemployment rate was at 7.2 per cent.
The DLP did acknowledge the continued quarters of economic growth, but said it was reduced when compared with the same period in 2025.
“While Barbados has recorded 20 consecutive quarters of growth and a 1.7 per cent expansion in the first quarter of 2026, this represents a slowdown from 2.6 per cent in the corresponding period last year. This trend reinforces a long-standing concern – in the absence of targeted economic diversification, the economy remains heavily exposed to external shocks, particularly those affecting tourism and construction, the two primary drivers of current growth,” Walters argued.
“Despite modest gains, there is limited evidence of meaningful expansion in other critical sectors such as agriculture, manufacturing and energy. Greater emphasis must be placed on developing agro-processing, investing in alternative energy, and advancing the creative economy particularly in areas such as film, digital media and local content production. These sectors represent real opportunities to broaden the economic base and build resilience.”
In his report, Greenidge stated that agriculture output increased by 4.1 per cent, recording a sixth consecutive quarter of growth, with fish catches surging 55.2 per cent, showing a strong rebound after Hurricane Beryl disrupted the industry in 2025.
Walters also raised concerns about debt management, saying no clear and credible strategy has been articulated for debt service, estimated to be in the region of $144.22 million in 2026. He reminded that in 2025, Government went to the capital markets to repay debt.
“While such measures may provide short-term liquidity relief, they do not constitute a sustainable debt management strategy. Rather, they reflect a form of debt roll-over that, if continued, can deepen structural vulnerabilities.
“Persistently relying on new loans to repay old ones increases exposure to interest rate shocks, erodes fiscal credibility and risks trapping the country in a cycle where debt grows faster than the economy’s ability to support it,” he added.
The DLP spokesperson called for clarity on the foreign reserves and how much was based on foreign receipts or tourism earnings. He suggested tourism spend might be down despite Government’s boast of record visitor arrivals, and that the construction boom might be locally driven rather than through foreign direct investment.
Greenidge had revealed that stay-over arrivals rose by 1.1 per cent to more than 237 000 visitors, while cruise passenger arrivals jumped 30 per cent to over 359 000.
Construction, he added, expanded 3.5 per cent, driven by projects such as the National Stadium, Coverley Residences and that at the Pierhead.
Walters also criticised what he termed “headline figures” that “risk presenting an incomplete picture”.
“More broadly, the absence of upto-date Accountant General reports and management accounts for several financial years severely constrains the ability to conduct independent, proper economic analysis. Without this critical information, it is difficult to fully assess the sustainability of current fiscal and economic trends.” (SAT/PR)
