Barbados

The Barbadian authorities continue to make good progress in implementing the comprehensive Economic Recovery and Transformation (BERT) plan aimed at restoring fiscal and debt sustainability, rebuilding reserves, and increasing growth. Since May 2018, international reserves have increased from a low of US$220 million (or 5-6 weeks of import coverage) to more than US$600 million at end- October 2019. The completion of a domestic debt restructuring in November 2018 has been very helpful in reducing economic uncertainty, and the terms agreed with domestic creditors have helped to put debt on a clear downward trajectory. Risks to the outlook are elevated but growth could surprise on the upside, with private sector confidence now increasing.