The IMF Has Concluded its February Visit to Barbados

The International Monetary Fund (IMF) has concluded its February virtual visit to Barbados. The IMF team, which held meetings with local officials from February 2 to 5, was led by Bert van Selm.

At the end of the visit, van Selm issued a statement in which he acknowledged the economic impact of the COVID pandemic on Barbados’ economy:

“The prolonged COVID-19 pandemic continues to have a major impact on Barbados. The economy is estimated to have contracted by about 18 percent in 2020, with a gradual recovery projected to start in 2021. Tourism arrivals remain at a fraction of normal levels, and recent increases in COVID-19 cases in key source markets, including the US and the UK, will likely delay the recovery. In addition, a recent outbreak of COVID-19 in Barbados led to an ongoing lockdown that will reduce economic activity in the first quarter of this year.”

The statement noted that “in this very challenging environment, Barbados continues to make good progress in implementing its ambitious and comprehensive economic reform program, while expanding critical investments in social protection.”

Van Selm confirmed that the island had met its December targets under the Enhanced Fund Facility (EFF) programme.

The statement also highlights several of the structural changes that are ongoing or have been completed:

“A new central bank law, aimed at strengthening the autonomy of the bank while limiting the provision of credit to the government, was adopted by parliament in December 2020. An actuarial review of the civil service pension system was completed in November 2020, providing the basis for upcoming public pension reform. A new procurement law to strengthen the fairness, integrity and transparency of the procurement process is expected to be submitted to parliament in February.”

Read the full statement here.