Barbados

This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile We project robust growth in 2022, given the strong recovery in Barbados? tourism sector. Financing from multilateral institutions and a smooth debt service profile will help keep Barbados? near-term payment risk low. --We expect trend growth will decelerate after 2022, exacerbated by risks to the global economy. --We expect official financing will cover government financing needs, and the government will achieve a primary balance surplus absent external shocks. --Stable and mature political system, despite past challenges with sustainable public finances. --More than US$1billion in multilateral financing identified to support budgetary needs. --Renewed agreement for International Monetary Fund (IMF) successor program, underpinned by the

...The government approved a new IMF successor program underpinned by BERT 2022, which will unlock additional IMF and multilateral financing to help finance deficits and sustain the sovereign's debt-servicing capacity. After completing seven successful reviews under the IMF's 2018-2022 Extended Fund Facility (EFF) program, and making good progress under the BERT program, Barbados' central bank international reserves increased to over US$1.4 billion, supported by...

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