Barbados, with a population of 281,635, is ranked 168th in the world, just behind French Polynesia. Located in the Caribbean, it covers 430 square kilometers, ranking 177th globally, just below Antigua and Barbuda.
Barbados, with a GDP of $5,699,950,000 in 2022, holds the 154th rank globally. It follows French Polynesia, which has a GDP of $5,814,661,208.90. In terms of GDP per capita, Barbados stands at $20,238.78, ranking 51st worldwide.
It is surpassed by Curacao, with a GDP per capita of $20,501.75. Despite its relatively lower GDP and GDP per capita rankings, Barbados maintains a stable economic position with a focus on tourism, international business, and renewable energy sectors.
What are the economic activities of Barbados?
- Primary activities: 1.5% of GDP.
- Secondary activities: 9.8% of GDP.
- Tertiary activities: 88.7% of GDP.
Primary Sector of Barbados
Barbados’ primary sector, particularly agriculture, thrives due to its tropical climate and abundant natural resources. Agricultural land covers 23.26% of the country. The main products include sugarcane, chicken, vegetables, milk, eggs, sweet potatoes, pork, coconuts, cantaloupes/melons, and various tropical fruits.
Despite contributing only 1.5% to the GDP, agriculture plays a vital role in the economy. The diverse range of crops and animal products highlights the sector’s significance, providing food security and employment opportunities.
Barbados’ geological diversity provides a range of natural resources, including petroleum, fish, and natural gas. These resources bolster the economy through industries like fishing, energy production, and exportation, contributing significantly to the country’s economic growth and stability.
Barbados’ oil production, with around 1000 barrels per day, ranks 67th globally. Its oil reserves of 2,315,000 barrels make up 0% of the world’s total.
Barbados’ natural gas production of 17 million m³ in 2020, ranking 93rd globally, plays a crucial role in the country’s economic activity, supporting industries and contributing to its growth and stability.
Secondary Sector of Barbados
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that create finished products ready for consumption. They take raw materials from primary activities and manufacture new goods for domestic sale or export. In Barbados, the main industrial products include sugar, light manufacturing, and component assembly for export.
Manufactures in Barbados’ total exports are not as significant, accounting for only 37.25% in 2023. Other sectors likely play a more crucial role in the country’s export economy.
Tertiary sector of Barbados
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Barbados encompasses various services where individuals provide knowledge and time to enhance productivity and meet needs. Key activities include restaurants, healthcare, education, banking, communication, media production, and tourism. These sectors play a vital role in driving the country’s economy and meeting the demands of both consumers and businesses.
Highlighting these, Barbados heavily relies on tourism, contributing significantly to its economy. With 966,000 annual arrivals and a staggering 3.43 tourist arrivals per capita, the industry thrives. Popular destinations include the pristine beaches of Bridgetown and the breathtaking natural wonders of Harrison’s Cave.
Another example of tertiary economic activity is the mobile cellular sector, with approximately 323,000 subscriptions, equating to about 115 per 100 inhabitants. This connectivity fosters technological growth, enhancing digital services and innovation.
International Trade of Barbados
Import Activities of Barbados
Barbados’ high import activities, accounting for 43.22% of GDP, demonstrate its reliance on foreign goods for economic growth and development.
Barbados primarily imports refined petroleum, plastic products, cars, railway cargo containers, and packaged medicine. Its key import partners are the US (43%), China (8%), Trinidad and Tobago (7%), UK (5%), and Netherlands (3%).
Exports Activities of Barbados
Barbados’ total exports in 2023 amounted to $475,842,549, accounting for 35.13% of its GDP. This indicates a medium level of importance, reflecting a significant contribution to the country’s economic growth and stability.
Barbados primarily exports liquor, packaged medicine, ships, paper labels, and baked goods. Its top export partners are the US (23%), Jamaica (11%), Trinidad and Tobago (9%), Guyana (8%), and Poland (6%).
Barbados economy challenges in 2024
Barbados faces challenges in 2024 due to its reliance on US imports, high public debt, and cost-of-living vulnerabilities. The country’s key tourism and financial sectors are crucial, but its economy is at risk due to declining competitiveness and currency strength issues.
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