Barbados Economy
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As per Heritage Foundation’s 2008 assessment, Barbados is ranked as the world’s 21st freest economy. Barbados’s economic conditions favor investments. For Americas region, Barbados was ranked 4th for obtaining an estimated economic freedom of 71.3 percent.
Economic freedom in Barbados
Economic freedom in Barbados has been made possible due to high levels of business freedom and other factors like property rights, labor freedom and lower corruption. Transparent dealings in domestic and foreign business matters have served as another advantage for Barbados’ economy. An efficient legal system has been successful in addressing business disputes in a fast-track manner and has been a major reason for lower corruption levels in that country.
Barbados GDP
According to 2007 estimates provided by CIA World Factbook, Barbodos’s GDP amounted to $5.31 billion. That was a percentage growth of 4.3% over previous year GDP estimates for Barbados. GDP per capita was estimated to be around $18, 900 in 2007.
Inflation
Inflation stood at around 6.4 percent for the time period between 2004 and 2006. Prices in Barbados is determined by market forces. International Monetary Fund has predicted inflation in Barbados to touch 9 percent in 2008.
Imports and exports
CIA’s World Factbook estimates Barbados’ total imports for 2006 to be around $1.586 billion. US is the major import partner for Barbados followed by Trinidad and Tobago and UK. Major import commodities include consumer goods, foodstuff, chemicals, fuel, and machinery.
Barbados’ 2006 export figures were put at $385 million by CIA World Factbook estimates. Export partners of Barbados include Trinidad and Tobago, UK, US, Saint Lucia and Jamaica.
Weaknesses
Barbados’ challenges lie in overcoming hindrances caused by high tariff rates imposed on goods. This causes a problem to efficient flow of goods in Barbados. Rising inflation is another challenge that faces Barbados’ economy.
Future of Barbados
Economic future of Barbados is quite bright. A “free economy” environment offered in Barbados assists its economy. Barbados’ constant efforts to reduce unemployment and promote direct foreign investments will yield rich dividend in the not-too-distant future.
