Use the latest browser recommended by Microsoft
Get speed, security and privacy with Microsoft Edge
The Barbadian economy grew by approximately 3.7% during the first half of 2006, moderately higher than the rate of increase in the same period one year earlier, primarily on account of continued robust growth in the non-traded sectors. Higher outlays on imports of fuel and capital goods, together with increased debt service payments, led to a decline in the net international reserves (NIR) of the monetary authorities in the six months under review. When commercial banks foreign currency deposits with the Central Bank and second tier reserves are included there was an increase in available foreign exchange reserves of $35.9 million. In addition, rising income levels contributed to a strong build-up in deposits, which boosted commercial bank liquidity. At the end of June, the liquidity ratio was slightly lower than the comparable figure for 2005. Government recorded a fiscal surplus in the first half of 2006, after incurring a deficit in the corresponding period in 2005.