Who Runs Barbados’s Economy, the Key Players in 2026

BARBADOS · ECONOMY

The Barbados economy matters to Americans because US visitors are a leading tourism market and the currency is fixed to the US dollar.

A small group of institutions decides how money moves, from the prime minister’s office to six banking groups and a handful of listed firms.

The Barbados Economy in Numbers

Barbados had about 282,700 people in 2025, and the IMF puts output per person at US$28,700. Nominal output, meaning the total value of goods and services at current prices, was BBD 15.9 billion (about US$7.9 billion) in 2025.

The IMF projects BBD 16.6 billion (about US$8.3 billion) for 2026. This guide converts at the fixed rate of 2 Barbados dollars (BBD) to 1 US dollar, held since 1975.

Real growth, which strips out price rises, was 3.4% in 2024 and 2.7% in 2025, according to the IMF’s June 2026 report. It projects 2.2% for 2026, and the Central Bank of Barbados reported 1.7% growth for the first quarter of 2026.

Unemployment in the Barbados economy was 7.2% at the end of 2025, according to the Central Bank of Barbados. The IMF puts youth unemployment near 18%.

What Drove Growth in 2025

Construction in the Barbados economy grew 9.8% in 2025, and agriculture grew 13.3%, mostly food crops. Business and other services added 3.7%, the IMF says.

Tourism-linked building, higher hotel room rates and record cruise traffic carried the rest. The central bank also credits financial services, where credit and deposits both rose in early 2026.

The Government and Its Economic Plan

The party steering the Barbados economy is Mia Mottley’s Barbados Labour Party (BLP), which won all 30 seats in February 2026.

Mottley remains prime minister and addressed the UN General Assembly in September 2026. The IMF says her government holds a strong mandate.

The IMF’s June 2026 report names Ryan Straughn as Minister of Finance.

A Bridgetown newspaper reported his announcements on 6, 8 and 12 October 2026. His ministry runs the budget, public borrowing and the reform plan BERT, short for Barbados Economic Recovery and Transformation.

BERT 2022 ran with an IMF loan programme from December 2022 to June 2025. A new BERT 2026 plan went to Cabinet in January 2026 and focuses on productivity, public finances, financial markets, skills and climate resilience.

Debt, Ratings and the New IMF Safety Net

The IMF puts public debt at 96.0% of output at the end of the 2025/26 fiscal year, with a 60% target for 2035/36. Governor Greenidge put gross public debt at 93.7% at the end of June 2026.

About 57.6% of the debt is owed at home and 38.4% abroad. The government sold a US$500 million bond in June 2025 to refinance most of a 2029 bond and prepay IMF obligations.

S&P and Fitch both rated Barbados B+ after upgrades in October 2025, and Moody’s rates it B2. These are below investment grade, but the direction is upward.

The IMF’s Executive Board approved a 36-month precautionary Stand-By Arrangement on 22 June 2026 worth SDR 189 million (about US$257 million). Barbados can draw SDR 47 million (about US$64 million) at once.

The primary surplus, which is the budget balance before interest, reached 4.2% of output in 2025/26. The government targets 3.5% for 2026/27.

The Central Bank and the Dollar Peg

The Central Bank of Barbados (CBB) sets money rules and supervises the banks from the Tom Adams Financial Centre in Bridgetown. Dr Kevin Greenidge has been governor since March 2023, after advising the prime minister from 2018 to 2022.

A 2020 law gave the bank more independence and limits its financing of government deficits. On 20 October 2026 Greenidge said the island is better placed to withstand global risks, with growth now easing to about 2%.

How the Peg Works

The Barbados dollar has been fixed to the US dollar since 1975, backed by capital controls. The IMF calls the peg a key anchor of the Barbados economy.

Gross reserves were about US$1.5 billion at the end of 2025. Import cover was 25.5 weeks in March 2026, against a 12-week benchmark.

A 2% fee on buying foreign currency, set in 2017, raises about 0.6% of output a year. The IMF urges its removal.

The Banks and Insurers That Hold the Money

The CBB’s June 2026 list names six licensed banking groups: CIBC Caribbean, First Citizens, RBC Royal Bank, Republic Bank, Scotiabank and Sagicor Bank. The Financial Services Commission supervises credit unions and finance companies.

The IMF says the banks are strongly capitalised and profitable, with falling bad loans. Credit unions still carry high bad-loan ratios and are due to join a new deposit insurance scheme.

A second tier serves foreign clients, and the CBB listed 12 foreign currency earning banks in June 2026. They include units of Bank of Montreal and Bank of Nova Scotia, plus Cidel, Amicorp and Concorde.

Sagicor Financial Corporation and the Insurance Corporation of Barbados are both listed on the Barbados Stock Exchange. Central bank data show credit grew 0.8% and deposits grew 1.4% in the first quarter of 2026.

The Listed Companies and Family Names

The Barbados Stock Exchange is small: its composite market value was BBD 5.6 billion (about US$2.8 billion) on 7 January 2026. Five names carry most of the weight.

• CIBC Caribbean Bank: BBD 3.2 billion (about US$1.6 billion) in market value, the largest on the exchange, as of 7 January 2026.
• Sagicor Financial Corporation: BBD 858 million (about US$429 million) in market value on that date.
• Goddard Enterprises: BBD 550 million (about US$275 million). Its units cover manufacturing, airline catering and ground handling, distribution, building supplies, cars and shipping.
• Banks Holdings: BBD 292 million (about US$146 million), the exchange’s fourth-largest company by value.
• Cave Shepherd and Company: BBD 183 million (about US$91 million).

Who Stands Behind the Big Names

Goddard’s revenue for the year to 30 September 2025 was BBD 1.85 billion (about US$924 million), up from BBD 1.34 billion (about US$668 million). Profit from continuing operations was BBD 96.7 million (about US$48 million), its annual report says.

Anthony H. Ali is Goddard’s managing director and A. Charles Herbert chairs the board. Local companies and institutions hold 58% of the shares, non-resident investors 25% and local individuals 16%.

Sir Geoffrey Cave chairs Cave Shepherd, and Roger M. Cave is chief executive. Its 2025 profit was BBD 17.5 million (about US$8.7 million), and three companies, led by Beach Fronts Limited, hold about 55% of its shares.

The exchange also lists the West India Biscuit Company, Barbados Dairy Industries, Eppley Caribbean Property Fund and the media group One Caribbean Media. Emera, the Canadian utility group, is listed through deposit receipts, and Barbados Light & Power, the island’s electricity utility, names Emera as its parent company.

Tourism, the Engine of Jobs and Dollars

Long-stay visitors reached a record 729,310 in 2025, up 3.3% from 704,340, and hotel occupancy rose to 65.3%, central bank figures show. US visitors grew 8.1%, Canada sent 90,209 and the Caribbean community supplied 98,336.

Cruise arrivals rose 12.9% in 2025 to record levels, and rose 30% in the first quarter of 2026, the IMF reports. Long-stay arrivals in that quarter rose 1.2% to 237,194, with 64,275 from the United States and 91,429 from the United Kingdom.

Hotels and the Airport

The 130-room Hotel Indigo has opened. The 220-room Royalton CHIC and 28-suite Blue Monkey Hotel were due in June 2026, the tourism minister told Parliament in March.

Private owners and international brands build and run hotels. The government sets the rules and promotes the island abroad.

The central bank lists an expansion of Grantley Adams International Airport among its growth sources. Finance Minister Straughn said on 8 October 2026 that the BBD 80 million (about US$40 million) project should start in November.

The work adds four jet bridges and a redesigned terminal over about 12 months. A proposed BBD 300 million (about US$150 million) management deal for the airport is on hold, Straughn said.

Rum, Sugar, Farms and Power

The IMF lists tourism, financial services, rum, sugar and chemicals as the main exports of the Barbados economy, and exports grew 4.4% in 2025. Mount Gay, founded in 1703, is owned by France’s Rémy Cointreau group since 2014 and bought 324 acres of its historic estates in 2015.

The IMF names the Barbados Agricultural Management Company among the state-owned bodies, alongside the National Housing Corporation and the Rural and Urban Development Commissions. The government plans a stocktake of its state enterprises.

Electricity and the Energy Bill

The IMF lists a heavy fuel oil price lock of US$92 a barrel until June 2026 and US$85 from July to September 2026. Plans cover 60 megawatts of battery storage and a 60-megawatt wind farm, with the World Bank Group’s IFC as lead adviser.

Fuel costs matter to the Barbados economy because the IMF warns that higher commodity prices may push up inflation and the current account deficit. Imports grew 8.2% in 2025, faster than exports, and the deficit was 5.7% of output.

What It Means for US Readers

For the Barbados economy, the United States ranked second after the United Kingdom among long-stay markets in early 2026. A fixed rate of BBD 2 to US$1 makes prices easy to read and lowers currency risk for visitors, banks and bond holders.

For investors, the US$500 million bond issued in June 2025 and the IMF safety net show how the government keeps market access. For travellers, a record cruise season and new rooms mean more choice, though room rates are rising.

A guide to moving to Barbados covers visas and daily costs, and an explainer on the island gives the wider picture. Read Barbados in Latin America, Barbados Geopolitics Explained 2026, Barbados Neighbours, Sea Borders and Venezuela and Barbados Keeps US$257M IMF Cover.

What Is Not Known

The IMF line for the Barbados economy is a precaution, and the government has not said whether it will ever draw on it. The central bank gave a 2026 growth range of 2.5% to 3.0% in January, but by October its governor spoke of about 2%.

The annual report of Cave Shepherd does not say who owns Beach Fronts Limited, its largest shareholder. The IMF report gives no figures for the size of state enterprises.

Whether the 2% foreign currency fee will go, and when the stocktake of state enterprises will report, is open. The path of fuel prices and Atlantic hurricane damage will also shape the next budget.

Frequently Asked Questions

Who runs the Barbados economy?

Prime Minister Mia Mottley and Minister of Finance Ryan Straughn set budget and reform policy, while Governor Kevin Greenidge runs the Central Bank of Barbados. Private banks, hotel owners and a few listed companies carry most business activity.

What is the biggest industry in Barbados?

Tourism is the main source of growth, jobs and foreign currency in the Barbados economy, with a record 729,310 long-stay visitors in 2025. Financial services, rum, sugar and chemicals are the other main exports, according to the IMF.

Is the Barbados dollar tied to the US dollar?

Yes, the Barbados dollar has been fixed to the US dollar since 1975, at BBD 2 to US$1. The IMF calls the peg the key anchor of the Barbados economy, and capital controls help defend it.

How big is Barbados’s debt?

The Barbados economy carries public debt of 96.0% of output at the end of the 2025/26 fiscal year, the IMF says. The government aims to bring it to 60% by 2035/36.

Which banks operate in Barbados?

The banks of the Barbados economy, as the Central Bank of Barbados lists them for June 2026, are CIBC Caribbean, First Citizens, RBC Royal Bank, Republic Bank, Scotiabank and Sagicor Bank. A further 12 foreign currency earning banks serve international clients.

Is Barbados’s economy safe for investors?

For investors in the Barbados economy, S&P and Fitch rate Barbados B+ and Moody’s rates it B2, all below investment grade. The IMF approved a US$257 million precautionary safety net on 22 June 2026, which supports confidence in the peg.

Sources: International Monetary Fund, Barbados 2026 Article IV and Stand-By Arrangement country report, June 2026; International Monetary Fund, staff-level agreement with Barbados (press release 26/151), 14 May 2026; Central Bank of Barbados, Outlook for the Barbados economy in 2026, 30 January 2026; Central Bank of Barbados, licensed financial institutions, June 2026; Central Bank of Barbados, the Governor, October 2026; Barbados Stock Exchange, market capitalisation, 7 January 2026; Goddard Enterprises, 2025 annual report, year to 30 September 2025; Cave Shepherd and Company, 2025 annual report, 2025; Bridgetown daily newspaper, central bank first-quarter 2026 figures, 29 April 2026; Bridgetown daily newspaper, 2025 tourism figures presented to Parliament, 10 March 2026; Mount Gay Rum, October 2026; Rémy Cointreau, Mount Gay, October 2026; Central Bank of Barbados, notice of the quarterly review by Governor Kevin Greenidge, 14 October 2026; Central Bank of Barbados, Fixed for forty-one years (peg at BBD 2 to US$1), history of the peg; Bridgetown daily newspaper, governor on economic risks, 20 October 2026; Bridgetown daily newspaper, finance minister on the airport expansion, 8 October 2026; Bridgetown daily newspaper, finance minister on an online platform for concessions, 12 October 2026; United Nations, Prime Minister Mia Mottley at the General Assembly, 24 September 2026; Barbados Light & Power, company website (parent company Emera), October 2026.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief

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