Understanding The Local Impact Of International Actions

• 2025: A Look Back Part 1

By Central Bank of Barbados

BRIDGETOWN, Barbados – Following the announcement that the United States would be imposing 10 percent reciprocal tariffs on Barbados, Central Bank of Barbados Governor Dr Kevin Greenidge, F.B. published a paper titled“Impact of the 2025 U.S. Global Tariff Hikes on Barbados,” which offered an in-depth assessment of the potential effects on the Barbadian economy given that the island relies heavily on imports.

The paper revealed that the tariff increases could lead to higher inflation, with food prices rising by as much as 3.2 percent and energy costs by 4.7 percent.

The tourism sector could also be negatively impacted by the tariffs as increases in the cost of living in our major source markets could lead to fewer would-be tourists visiting our shores.

Governor Greenidge outlined a range of strategies to mitigate these challenges, highlighting the need for export diversification and deeper regional integration, particularly in relation to food security, transportation, and logistics, as well as the development of new tourism source markets.

Helping Barbadians to understand“Economics in Everyday Life”

Continuing its efforts to make economics accessible to the average Barbadian, the Bank launched“Economics in Everyday Life,” a blog series, in May. The series sought to show that economics isn't merely theoretical and abstract, but something we encounter as we go about our regular lives. The first article,“The Price of a Nap” used humour and highlighted real-world inefficiencies to illustrate how small delays and lost productivity add up across the country.

Subsequent episodes focused on the benefits of remote work, the economic impact of traffic jams, the value of the creative industries, and other relatable topics.

A milestone in the development of the national instant payment system

In June, following a competitive procurement process that began in February 2025 with the release of a Request for Proposal, the bank announced a major milestone in the development of the national instant payment system with the selection of Montran Corporation as the project's technology partner.

Montran, a globally recognised provider of payment solutions, has previous experience in Barbados, having developed the real-time gross settlement (RTGS) system.

The instant payment system, later branded as BiMPay, is a central component of the Bank's wider efforts to modernise Barbados' payments landscape.

Other activities

In May, the International Monetary Fund (IMF) concluded its final review of Barbados' Extended Fund Facility and Resilience and Sustainability Facility. The following month, the IMF executive board approved approximately US $58 million in financing for Barbados.

Also in June, the bank launched its annual summer internship programme, welcoming more than 30 tertiary-level students pursuing higher education in a range of disciplines. The students were placed in departments across the organisation, based on their area of study, to gain real-world experience in the world of work.

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