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Caribbean Islands Economy
Barbados experienced steady economic development and
diversification following World War II, outperforming in many ways
all of the Windward Islands. The economy was transformed from one
dependent on agriculture, primarily sugar, for one-third of its
gross domestic product (GDP--see Glossary) to one considered
relatively diversified with the development of tourism and
manufacturing sectors. By 1980 agriculture accounted for a mere 9
percent of GDP, whereas the wholesale and retail trade had grown to
17 percent, general services to 14 percent, manufacturing to 12
percent, and government services and tourism to 11 percent each. At
the same time, Barbados standard of living had increased remarkably
as the nation elevated itself from the ranks of the low-income
countries to those of middle-income countries.
Barbados' economic success could be traced to many factors. The
island had long been a model of social and political stability,
which helped attract both public and private foreign investment.
The government also assisted with the infrastructural development
required of an expanding economy, including a sound education
system.
In spite of a lengthy history of economic development, the
economy floundered at times during the 1980s. In part the
fluctuations were the result of the innate characteristics of a
small Caribbean economy, which include a limited resource base and
heavy dependence on external markets. To a large extent, however,
the setbacks resulted from the worldwide recession in the 1981-83
period. In 1987, however, Barbados was still actively pursuing a
policy of growth based on a diversified export market, with a
prudent mixture of private and public management of economic
resources.
Data as of November 1987
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