Is Barbados getting more investment?

Researched and written by SHAWN CUMBERBATCH GOVERNMENT IS targeting annual economic growth of five per cent for Barbados. It is banking on a major increase in investment to reach that target.

This objective, as outlined in the second Barbados Economic Recovery and Transformation programme is predicated on this investment coming from Government, the private sector, and foreign direct investment (FDI) sources.

The objective of achieving a substantial boost was outlined when Prime Minister and Minister of Finance Mia Amor Mottley presented the latest Budget in March.

“The expectations are that GDP will expand further, by about four per cent in 2024 and into the medium term, predicated on continuous investments by both the public and private sectors,” she said.

“Government stepped up public investment in strengthening our infrastructure. Investment in our human capital is laying the foundations for continued stronger growth. Public investment since 2018 has totalled $1.8 billion and 16.2 per cent of GDP. Once again, we ensured investment in tertiary education free at the point of delivery for Bajans.”

The Prime Minister added: “Over the last five years, we have spent $2.7 billion in education and $1.8 billion in health. These approaches are critical investments in achieving our long term growth target of five per cent.”

In its recently released January to September economic review, the Central Bank of Barbados reported that net foreign direct investment was $449.8 million, down from $528.9 million in 2022. At the end of September net FDI was $363.6 million, up from $337.4 million at the end of September last year.

The Central Bank also detailed that all other investment flows reached $819.4 million in 2023, up from $406 million in 2022. At the end of September this category of investment was $306.4 million, down from $621.2 million at the end of September 2023.”

Governor Dr Kevin Greenidge reported that Government “increased its investment in education, digital transformation, and road infrastructure”.

“Capital spending, climbed to $114.5 million at the end of September 2024, some $52.7 million higher than for the corresponding period in the previous fiscal year,” he said.

“Government transfers to Export Barbados for a digital innovation and health centre, to promote science, technology, and innovation, as well as land acquisitions for the establishment of schools, pushed up capital expenditure. The Mill & Pave programme, which began in financial year 2023/24, also boosted capital outlays in the early part of financial year 2024/25.”

The Central Bank is predicting that the economy will grow by about 3.8 per cent this year, “driven by ongoing private and public sector investments, particularly in tourism and utility infrastructure”.