The ratings on Barbados reflect political stability and consensus policymaking, as demonstrated by the long-standing, fixed-exchange-rate regime. The government has played a central role in shifting the economic focus from manufacturing and agriculture toward services, and recently took important steps to reform the pension system, improve the tourism infrastructure, and liberalize telecommunications. Economic growth was strong in 2004, with a 3.4% real GDP increase following 2% growth in 2003. Further gains in tourism, communication, and construction are expected in 2005, when real GDP is projected to increase by 3.3%. Medium-term growth prospects remain diluted by struggling agricultural and manufacturing sectors and by the clouded outlook for the offshore sector, the prospects of which are threatened by pressure from the Organization
