International Monetary Fund. Western Hemisphere Dept.
INTERNATIONAL MONETARY FUND
Barbados' economy is estimated to have contracted by 0.7 percent in 2013, with weakness across both the traded and non-traded sectors. The 2013 Article IV Consultation highlights that long stay tourist arrivals, which are highly dependent on the U.K. and North American markets, were down by 5.2 percent in 2013. Inflation dropped sharply to 1.9 percent by end-November, although unemployment rose to 11.7 percent. Foreign reserves declined during 2013 to close out the year at US$578 million. The financial system appears to be well capitalized, but credit quality and profitability have suffered with the prolonged downturn.