The Barbados economy demonstrated robust growth in the first nine months of 2025, expanding by 2.7%, as reported by the Central Bank on Wednesday. This growth was fueled by significant contributions from tourism, agriculture, construction, and business services, while unemployment reached a historic low of 6.1%. Central Bank Governor Dr. Kevin Greenidge highlighted these achievements during a press conference at the Courtney Blackman Grande Salle, emphasizing the resilience of the economy despite global trade tensions and slowing growth in advanced economies. Key sectors such as tourism and agriculture drove real GDP growth, while construction and business services bolstered the non-traded sector. Inflation remained subdued, with a 12-month moving average of 0.5% by August, as import costs declined. The external position of the country remained strong, supported by robust tourism receipts and increased long-term financing. International reserves stood at $3.3 billion at the end of September, offsetting a wider merchandise deficit. Fiscal performance also improved, with a primary surplus of $574.1 million (3.8% of GDP) and a fiscal surplus of $227.1 million (1.5% of GDP). The debt-to-GDP ratio decreased by 2.9 percentage points to 100.1%. Tourism played a pivotal role, with long-stay arrivals rising by 5.5% to 537,897, driven by increased airlift and marketing campaigns. The United States led visitor growth, contributing 36% of arrivals, while Europe and CARICOM markets also saw significant increases. Cruise arrivals surged by 31.5%, reflecting higher vessel occupancy rates. The labor market saw continued improvement, with unemployment hitting a record low of 6.1% in June, marking the fifth consecutive quarterly decline. Sectors such as agriculture, utilities, tourism, and construction drove job creation, while jobless claims remained below historical averages. The Central Bank’s report underscores the broad-based economic recovery and the pivotal role of tourism in sustaining growth and employment.
