The International Monetary Fund has completed its seventh and final review under the Extended Fund Facility with Barbados, giving the country access to about US$23 million.
This brings the total disbursements under the EFF to about US$435 million.
In a press release, the IMF noted that despite a challenging global economic environment, Barbados continues to make good progress in implementing its ambitious economic reform programme, which is aimed at restoring fiscal sustainability, increasing reserves, and unlocking growth potential.
It says while economic activity has started to recover, risks to the outlook remain elevated, with higher global commodity prices pushing up inflation.
The IMF says international reserves, which reached a low of US$220 million (5-6 weeks of import coverage) in May 2018, are now at a “comfortable” level of US$1.5 billion.
Meanwhile tourism, which came to a virtual standstill in April 2020, is now at about 60% of pre-pandemic levels.
The IMF says medium-term growth prospects depend on accelerating structural reforms to improve the business climate, diversify the economy, and facilitating green and digital transformations.