The IMF Has Completed its Fifth Review of Barbados’ Economic Recovery and Transformation Programme

The International Monetary Fund (IMF) has completed its fifth review of Barbados’ Economic Recovery and Transformation (BERT) programme.

Following the review, which was conducted virtually from May 3-7, IMF team leader Bert Van Selm released a statement saying:

“Barbados’ economy remains severely depressed by the ongoing global pandemic. Tourism came to a virtual standstill from April 2020 onwards and remains at a fraction of normal levels. Economic growth for 2021 is premised on a modest recovery of tourism in the second half of 2021. Risks remain elevated, including in light of the impact of recent volcanic activity in neighbouring St Vincent.”

He however stated that “In this very challenging environment, Barbados continues to make good progress in implementing its ambitious and comprehensive economic reform programme.”

Van Selm also confirmed that Barbados had met all of its quantitative targets except for one related to transfers and grants to state-owned enterprises, which “was exceeded owing to measures to address the COVID-19 health crisis (including the vaccination program executed by the national hospital).”

He also revealed that subject to approval from the IMF Executive Board, Barbados would receive an additional US $24 million in funding under its Enhanced Fund Facility (EFF) programme.

During the review, Barbados and the IMF also agreed on a new primary balance target of 0 percent of GDP for fiscal year 2021/22 as compared to the 1 percent primary deficit that was targeted in fiscal year 2020/21.

Read the full statement here.