Market Overview

Barbados, the easternmost Caribbean island, is an Englishspeaking country, 21 miles long by 14 miles wide, with approximately 275,000 inhabitants and a labor force of 142,000.

Stable Democratic Government: Barbados enjoys a longstanding democratic

tradition and a strong commitment to the rule of law and political and economic freedom.

Solid Economic Performance: The Barbadian economy grew by approximately 3.5 percent in 2006.  At the end of September 2006, the 12-month moving average rate of inflation was estimated at 7.6 percent, compared to 5.1 percent at the end of September 2005.  The unemployment rate dropped to the lowest level ever, or 7.6 percent, in the last quarter of 2006.  Net International Reserves stood at USD $1.1 billion.  Tourism rose by an estimated 2.5 percent, reversing a 2.2 percent decline in 2005.  The overall growth in visitor arrivals was because of greater air travel capacity, which offset the fall-off in cruise passengers during the same year.  The non-traded sectors continued to provide the main impetus for growth, led by the surge in the construction industry, which increased by 20 percent, mostly due to Cricket World Cup preparations. The Central Bank of Barbados anticipates a 4-4.5 percent growth in GDP for 2007.

Strong U.S. Market Share: The United States has a trade surplus with Barbados, and 40 percent of Barbados’ imports come from the United States.

High Level of Development: Barbados’ per capita income is the highest in the Eastern Caribbean region at USD $17,300, and the country ranks high in the United Nations Development Program's Human Development Index.

Unemployment has been declining. Poverty, corruption, and crime remain low.

Stable Monetary and Fiscal Policy: The main objective of Barbados' monetary policy is to preserve the fixed exchange rate with the U.S. dollar, which has with a debt to GDP ratio of over 70 percent in 2006.

Economic Indicators

Population:	280,000 (2006 estimate)
GDP Per Capita income:	17,300
GDP:	2.976 billion
Exports:	359 million (merchandise)   1.41 billion (commercial services)
Exports to the U.S.:	33.9 million
Imports:	1.6 billion (merchandise)   636 million (commercial services)
Imports from the U.S.:	442.5 million
Exchange Rate:	BDS$2 = US$1

Market Opportunity

Cricket World Cup 2007: Barbados will host several games, including the final, in the International Cricket Council (ICC) Cricket World Cup 2007.  This event will attract worldwide attention.

Telecom Liberalization: Barbados has recently liberalized its telecom market, with full competition in the cellular, domestic, customer premises equipment and international sectors. Liberalization has created new opportunities for U.S. telecom companies, and should continue to bring down the relatively high long distance rates to the benefit of all international businesses.

CARICOM Single Market: Barbados is a Caribbean Community (CARICOM) leader in implementing the CARICOM Single Market and Economy (CSME) commitments.  Once fully in place, the CSME will reduce or remove restrictions on the movement of goods, services, labor, and capital throughout the region.

(See www.caricom.org for more information.)

Tax Incentives: International businesses enjoy substantial tax incentives, including a maximum tax rate of 2.5 percent, and lengthy tax holidays for exporters.

Best Prospects: Barbados imports 70 percent if its food, over a third of which comes from the United States. Trade opportunities will remain for U.S. Exporters of hotel and restaurant supplies, construction materials and specialty agriculture and consumer products.

If you are a Barbadian company wishing to import from the U.S., click here.