Limited fiscal policy options, structurally vulnerable fiscal revenues, ongoing spending pressures, and rising debt A small, open economy with high dependence on the U.S. and the U.K. and weakening competitiveness position Political stability and strong governance, reflecting mature political, judicial, and economic institutions Large surpluses at the National Insurance Scheme, providing flexibility to fiscal accounts Barbados' economic fundamentals continue to weaken, reflecting not only tough economic and uncertain financial conditions globally, but also rising competitiveness and other structural shortcomings. The fiscal stance remains weak, as reflected in the rising debt burden, off-budget spending, and outstanding contingent liabilities. The government's large fiscal deficits and high debt burden, as well as its limited policy options to lower those in the context of
