Caribbean Region: Review of Economic Growth and ... - USITC

nevertheless, remains an issue for Barbados’ economic development. The most recent survey (1997)estimated poverty at 14 percent of population, and the rate of indigence at 1 percent. 3Domestic EconomyBarbados: Selected domestic economy indicatorsMRY(2000–07)Middleincomeaverage,2006Inflation (%, 2006) 7.3 4.3Labor force participation rate, total(%, 2006)Gross fixed capital formation (%of GDP, 2004)Agricultural land (% of land area,2003)Irrigated land (% of cropland,2003)Fixed line and mobile phonesubscribers (per 1,000 people,2005)81 7319 2544 3529 181265 587Number of ports and terminals 1 naPaved roads (% of total, 2004) 100 naCategory 1 and 2 airports, 2007 1 naSources: World Development Indicators; CIA World Factbook.See appendix D for sources and definitions.Source: CIA World Factbook. See appendix D for sources anddefinitions. Data for most recent year available from source.Note: GDP based on 2007 estimate; GDP composition basedon 2000 estimate; labor force composition data based on 1996estimate; labor force data based on 2001 estimate.Note: MRY=most recent year for which data are available; na= “not available.“The services sector is the largest contributor to GDP, with approximately 80 percent, followed by industry(approximately 15 percent) and agriculture (approximately 5 percent). Barbados’ primary natural resources,its warm climate and beaches, have supported expansion of its tourism industry. The tourism industry is welldeveloped, and most new investment is for improving existing facilities. The main source of tourist arrivalsis the United Kingdom, estimated at almost 40 percent, and the United States, estimated at almost 25 percentand increasing. In addition to tourism, offshore finance and information services have contributed to theexpanding services sector. These two industries benefit from a relatively highly educated workforce.Expansion of Barbados’ financial services industry is spurred by low corporate taxes.The main manufacturing industries are sugar, light manufacturing, and component assembly for export. Mostmanufacturing activities (such as foodstuffs, beer, flour, animal feeds, and chemicals) are primarily gearedtoward the local market, although the main agro-industries (sugar refining and rum) also produce for export.Barbados’ relatively high labor costs compared to the Caribbean region hampers expansion of manufacturingactivities.3World Bank, A Time to Choose, 210.4-25