Barbados: 2008 Article IV Consultation: Staff Report; Staff Statement; and Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, August 28, 2008
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- Barbados: 2008 Article IV Consultation: Staff Report; Staff Statement; and Public Information Notice on the Executive Board Discussion
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Bibliographic details
- Published: August 28, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451806090.002
Summary and focus
- The consultation is focused on policies to balance the conflicting risks to inflation, growth, and medium-term sustainability.
- The government has maintained some policy space by postponing the liberalization of the capital account, but options are constrained by high public debt and the peg to the U.S. dollar.
- Downward-trending annual inflation rates masked pent-up price pressures that have been unleashed.
- The government stressed its commitment to fiscal prudence, with a view to balancing the central government accounts over the medium term.
Major macroeconomic constraints and risks
- High public debt constrains policy options.
- The peg to the U.S. dollar limits exchange-rate and monetary policy flexibility.
- Postponement of capital account liberalization preserved some policy space but did not eliminate constraints.
Inflation and price dynamics
- Annual inflation rates were trending downward but concealed pent-up price pressures that later emerged.
Fiscal stance and medium-term outlook
- The government emphasized fiscal prudence.
- Policy objective: balancing the central government accounts over the medium term.
Publication metadata and identifiers
- Pages: 43
- Volume: 2008
- Issue: 295
- Series: Country Report No. 2008/295
- DOI: https://doi.org/10.5089/9781451806090.002
- Stock No: 1BRBEA2008001
- ISBN: 9781451806090
- ISSN: 1934-7685
- Publication date on landing page: August 28, 2008
Subjects and keywords
- Subject: Balance of payments, Current account, Economic sectors, External debt, Inflation, Prices, Public debt, Public sector
- Keywords: budget proposal, Caribbean, CR, Current account, GDP estimate, Global, Inflation, inflation expectation, ISCR, Public sector, sc, staff appraisal, staff projection
IMF Staff Country Reports — Barbados: 2008 Article IV Consultation: Staff Report; Staff Statement; and Public Information Notice on the Executive Board Discussion