Barbados continued its strong economic performance into the first quarter of 2025, recording 2.6% real GDP growth. This favourable performance was buttressed primarily by the tourism, business services and construction sectors, which performed well during the period.
Additionally, as reported by the Governor of the Central Bank of Barbados, Dr. Kevin Greenidge, inflation maintained a downward trend at 0.9%, while unemployment claims dipped during the first two months of 2025, then increased again in March.
During the period under review, the issuance of foreign currency permits (FCPs) increased by 22.7%, totalling 433 when compared to the first quarter of 2024. This increase included both renewals and new issuances of FCPs. Despite preliminary data revealing a reduction in staff within the global business sector, the increase in FCPs indicates growing confidence in Barbados as a jurisdiction for foreign direct investment. Further, with recent adjustments to the FCP framework, it is anticipated that the global business landscape in Barbados’ will continue to be further enhanced.
Barbados’ GDP for the remainder of 2025 is forecast at 2.7%, a revision from the 3% projected at the beginning of the year. The tourism, construction and business services sectors are expected to contribute to this growth, despite weaker global conditions and ongoing trade tensions.
A close watch will also continue on developments across the USA, as it relates to broad-base tariffs, the effects of which may potentially affect Barbados and the wider Caribbean in the future.