15 Jan 2010Blog

Barbados: Economy in 2009 and Prospects for 2010 – Central Bank

by Maxwell

Bridgetown — Jan. 14, 2010 — As was to be expected in a country that is highly dependent on tourism, the performance of the Barbadian economy in 2009 was worse than in 2008, by most indicators. The impact of the economic and financial crisis in industrialised countries showed up in a contraction of real output, a reduction of foreign exchange inflows and an increase in unemployment.

……..Prior to the onset of the global economic recession, the Barbadian economy was forecast to slow to 1.8% in 2008 and then accelerate to 2.8% in 2009. However, it
turned out that Gross Domestic Product (GDP) stagnated in 2008, and a significant contraction of 5.3% is estimated for 2009. The crisis is estimated to have cost
Barbados almost 10 percentage points in economic growth over the two years. This in large measure reflected a drop in long-stay arrivals over the two-year period of roughly 13.3% below the initial forecast, and a 3.9% decline in cruise passenger arrivals over the two years. The poor performance of tourism depressed other major sectors of the economy, which provide services to the tourism sector.

See full article here.