Barbados economy grows 1.4 per cent in first half as tourism falls short of projections

BRIDGETOWN, Barbados. Barbados’ economy grew by an estimated 1.4 per cent in the first half of 2026, driven mainly by domestic sectors, according to the Central Bank of Barbados (CBB).

The bank expects growth of 2 per cent for the year as a whole, although tourism, construction and transportation underperformed projections.

External pressures, including the conflict in the Middle East, higher freight and energy costs, disrupted shipping and increased airfares, also weighed on activity.

Tourism flat

Tourism remained close to last year’s level. Long-stay arrivals rose slightly, but shorter visitor stays reduced overall visitor nights.

“Sharply higher airfares and reduced seat capacity weighed on the United States market in particular, and long-stay arrivals held broadly level rather than expanding as projected,” the CBB said.

The traded sector grew by 0.4 per cent, with tourism value added close to last year’s level.

Domestic drivers

CBB Governor Dr Kevin Greenidge said the non-traded sector and other services drove a 1.5 per cent expansion, with wholesale and retail trade also contributing, while construction recorded modest growth.

Agriculture added to growth, while manufacturing output was broadly unchanged, the bank said.

“Domestic activity therefore sustained overall economic growth in a more challenging global environment marked by heightened geopolitical tensions, trade uncertainty, and softer demand in several key tourism source markets,” it said.