Cairo – October 12, 2026 -- Barbados cut public debt from 104.1% of GDP at end-FY2023/24 to 96% at end-March 2026, backed by a primary fiscal surplus of 4.2% of GDP in FY2025/26, according to a Country Brief released by African Export-Import Bank (Afreximbank).
Growth to slow to 1.9% in 2026 after 5.6% post-pandemic average
GDP growth averaged 5.6% between 2021 and 2026, driven by the rebound in tourism. Afreximbank forecasts expansion of 1.9% in 2026 and 2.3% in 2027. It cites resilient tourism inflows, a strong pipeline of investment projects and targeted government support for households and businesses.
IMF approves USD257 million Stand-By Arrangement for next reform phase
The original IMF-backed Barbados Economic Recovery and Transformation (BERT) programme concluded successfully in 2025. In June 2026, the IMF Executive Board approved a new 36-month precautionary Stand-By Arrangement of USD257 million to support the next phase of structural reform.
Government targets 3.5% primary surpluses to reach 60% debt anchor by FY2035/36
The medium-term framework calls for sustained primary surpluses of 3.5% of GDP. That puts public debt on a trajectory toward the 60% of GDP anchor by FY2035/36. The IMF assesses the overall risk of sovereign stress as moderate.
Goods and services trade projected to reach USD6.3 billion in 2026
Total goods and services trade grew from USD4.1 billion in 2018 to USD5.5 billion in 2024. The brief projects USD6.3 billion in 2026. The services balance remains a key pillar, with tourism inflows up 3.7% in the first quarter of 2026 and cruise ship arrivals up 30% year on year.
Central Bank of Barbados launches BiMPay instant payment system
In June 2026, the Central Bank of Barbados launched BiMPay, a national instant payment system enabling round-the-clock settlements and broader financial inclusion. The brief describes it as the latest in a series of measures to strengthen the efficiency and resilience of the financial infrastructure.
Dr Yemi Kale, Afreximbank's Group Chief Economist and Managing Director, Research and Trade Intelligence, said the findings show a reform-driven economy that is an increasingly compelling partner for trade finance and development cooperation across the Caribbean.