Barbados' ongoing austerity programme will prompt a reduction in interest rates in the coming quarters, leading to a fall in debt servicing obligations. This will enable the country to turn to long-term borrowing as it looks reduce rollover risk following a significant run-up in short-term debt.
Barbados' current account shortfalls will narrow in the years ahead as rising tourist arrivals bolster services exports and a public sector wage freeze tempers import demand. Meanwhile, the financial account will be supported by a modest uptick in foreign direct investment into the country's tourism sector.
Barbados' ruling party, the Democratic Labour Party (DLP) will continue to move ahead with its legislative agenda, specifically its austerity measures, in the years ahead. The DLP's strong policymaking position will be enabled by low levels of public dissent and internal conflicts within the opposition Barbados Labour Party.
Barbados' real GDP growth will accelerate in the coming years on the back of tailwinds from low oil prices and rising tourist arrivals. That said, fiscal austerity measures, structurally high unemployment and limited consumer access to credit will ensure growth remains tepid.
Complete the trial form to receive a free issue of Latin America Monitor sent to your email address. The Latin America Monitor provides you with in-depth country by country data, analysis and forecasts.
START A FREE TRIAL TODAY
STEP 2: SELECT PRODUCTS
Please select the free products you would like to trial:
Thank you for your interest in Latin America Monitor
You will shortly receive an e-mail with link(s) to a full version of the newsletter(s) you selected. A member of our Client Services team will be in touch soon to receive your feedback on the newsletters and arrange a convenient time for a free demonstration of the full service. If your enquiry is urgent, please email our team here Thanks, BMI Research