Barbados has met all quantitative targets for end-December 2021 and end-March 2022 under the IMF’s EFF making it eligible for a drawdown of US$23 million.
According to the IMF’s Bert van Selm, “international reserves, which reached a low of US$220 million (5-6 weeks of imports) in May 2018, are now at a comfortable level of US$1.5 billion.” The IMF official said that economic activity in Barbados is starting to recover from the COVID-19 shock.
He said tourism came to a virtual standstill in April 2020, and the economy contracted by 14 per cent in 2020. Barbados recorded a primary deficit of 1% of GDP for the financial year 2021/22, unchanged from financial year 2020/21.” For financial year 2022/23, the authorities are targeting a primary surplus of 1% of GDP, with revenue projections premised on a continued recovery in tourism. (BT)
Extract from the CARICOM BUSINESS Newsletter Vol 5 No 20
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