Review of Barbados’ Economic Performance for the First Six Months of 2012
Barbados’ foreign exchange reserves at the end of June stood at $1,357 million, a decline of $63 million since December 2011. This level of reserves is no lower than the amount recorded at the end of 2008, the year the industrial economies fell into the worst recession in recorded memory. As expected, the international recession has slowed the inflows of foreign exchange to Barbados, and has therefore limited the prospects for growth in an economy which needs foreign exchange in order to register sustainable growth. The recession in the industrial world has been compounded by the European economic and financial crisis, further containing foreign investment in emerging economies like Barbados. As a result, real growth in the first half of the year was estimated at 0.6 percent.