Latin American Economy & Business - February 2014 (ISSN 1741-7430)

The International Monetary Fund (IMF)’s latest Article IV Consultation with the government of Barbados has highlighted the challenges that the island government faces. After years of economic stagnation and soaring public debt, the Bridgetown government needs to promote growth and put its finances on a stable footing, within the constraints of a fixed exchange rate regime. Fortunately, Barbados’ reasonably competitive US$4.0bn economy is one in which relatively few new investments could have a positive impact – especially as the UK and US economies are recovering.