The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This 2007 Article IV Consultation highlights that the economy of Barbados has been growing at a solid pace, and the outlook for 2007 is generally favorable. Robust output growth of about 4 percent is expected to continue in 2007, supported by tourism and construction. Inflation, which was pushed up in 2006 by higher energy prices and a temporary import surcharge, is set to decelerate to 51/2 percent in 2007. However, the current account deficit, despite having narrowed in 2006, is still high and projected to remain unchanged at about 81/2 percent of GDP.