Barbados profile

Demography and Health

Barbados is a small island nation in the Caribbean with a population of about 282,467 people in 2024. The demographic profile combines longevity with a relatively low birth rate, a natural growth pattern that has settled into a mature stage for a small economy. Life expectancy at birth stands at 76.2 years (2023), indicating a well-developed health environment and decent access to medical services. The crude birth rate is 11.2 per 1,000 people (2023), while the crude death rate is 10.6 per 1,000 (2023), signaling a balance toward an aging population rather than rapid population growth. The under-5 mortality rate is 10.0 deaths per 1,000 live births (2023), which is a strong indicator of child health relative to many lower-income peers, though it remains an area for ongoing public health focus. Barbados also reports a notable health workforce: 2.96 physicians per 1,000 people (2022), suggesting a solid capacity to deliver medical care across the population. The share of gross domestic product consumed by health is 6.29% (2022), with domestic government health expenditure per capita, purchasing power parity terms, at about 528 international US$ (2022), reflecting public investment in health alongside private spending. The population’s connectivity—86–80% Internet usage (80.0% in 2023)—supports health information, telemedicine, and public health campaigns. On nutrition, 3.5% of the population faced undernourishment in 2022, a relatively low level that aligns with the country’s high-income status but reminds policy makers to maintain food security safeguards as imports and climate risks influence supply. Net migration registered as negative in 2024, indicating outflows that could affect healthcare staffing, labor supply, and the broader social fabric over time. Taken together, these indicators portray Barbados as a country with relatively strong health outcomes and system capacity, even as it confronts the typical pressures of a small, open economy and a net outflow of residents.

Economy

Barbados exhibits a high-income profile for the Caribbean, with nominal GDP per capita around 25,366 US dollars in 2024 and a purchasing power parity (PPP) per capita of 22,672 international dollars (2024). This signals a standard of living that supports a diversified consumer base and social services, even as the island remains vulnerable to external shocks common to small, open economies. The inflation rate turned negative in 2024 at -0.462% (157th), pointing to deflationary pressure or subdued price dynamics, which can reflect slack demand or stable commodity costs in a small economy anchored by services and tourism. The unemployment rate was 11.0% in 2021 (ranked 23), suggesting persistent labor market slack, a challenge for inclusive growth, but not unusual given the country’s exposure to global tourism cycles and external demand. FDI inflows amounted to 3.35% of GDP in 2023 (rank 64), indicating continued overseas investment as Barbados diversifies its economy beyond traditional sectors. The economy shows some green shoots in energy transition, with renewable energy accounting for 5.5% of total final energy consumption in 2022 (rank 49), reflecting efforts to reduce import dependence and greenhouse gas intensity, albeit with room for scale-up. The country also engages in knowledge-driven activity through patenting, with residents filing 73 patents in 2021 (rank 71), hinting at modest domestic innovation alongside a global services orientation. In energy and climate terms, total greenhouse gas emissions per capita excluding land use, land-use change, and forestry (LULUCF) stand at 3.5 t CO2e per person in 2023 (rank 115), a level that aligns with a small, service-oriented economy that relies on imports for energy. The economic environment is partly reinforced by a stable governance climate and a regulated business environment, but the data also suggest a need for continued productivity gains to sustain high living standards amid external volatility.

Trade and Investment

Trade and investment dynamics in Barbados are characterized by a modest but active foreign direct investment (FDI) presence and a measurable level of high-technology activity. Net FDI inflows equal 3.35% of GDP in 2023 (rank 64), signaling that foreign investors see Barbados as a venue for service-oriented and knowledge-based activities, while also indicating sensitivity to global capital flows. The country’s engagement with technology is visible in high-technology exports totaling about 16.5 million US dollars in 2023 (rank 107), reflecting a niche but tangible linkage to global supply chains for advanced goods. Innovation activity is further evidenced by 73 resident patent applications in 2021 (rank 71), which, while modest in scale, demonstrates ongoing attempt to convert knowledge into usable outputs. The trade profile is supported by a relatively high rate of internet penetration (80.0% of the population using the Internet as of 2023), which can facilitate digital trade, e-government services, and cross-border commerce. In sum, Barbados shows a resilient, albeit compact, trade and investment ecosystem: modest but meaningful FDI, credible high-tech exports, and a culture of innovation that benefits from digital connectivity, all within a small, open economy that remains sensitive to macroeconomic shifts and tourism cycles.

Governance and Institutions

Barbados ranks notably well for political stability and control of corruption. Political Stability and Absence of Violence/Terrorism scores reached 1.19 in 2023 with a high relative rank of 12, signaling a stable political environment conducive to investment and policy continuity. Control of Corruption holds a robust score of 1.34 (2023), ranking 23, indicating relatively effective checks and balances in the public sector. Regulatory quality is average to moderately strong at 0.503 (2023, rank 60), while the Rule of Law stands at 0.414 (2023, rank 72), suggesting that while institutions function well, there is room for strengthening legal frameworks and enforcement. Government effectiveness sits at 0.38 (2023, rank 67), reflecting a reasonable capacity to implement policy but with potential improvements in bureaucratic efficiency and service delivery. Together, these indicators point to Barbados as a nation with solid governance foundations, capable public institutions, and a governance environment that generally supports business confidence and social programs, even as it seeks to improve regulatory performance and legal clarity.

Infrastructure and Technology

Barbados demonstrates solid digital and human-capital infrastructure for a small island state. Individuals using the Internet reach 80% of the population in 2023, indicating broad digital connectivity that underpins e-commerce, remote work, and online services. The health infrastructure is reinforced by 2.96 physicians per 1,000 people in 2022, reflecting an ample medical workforce for a population under 300,000. Innovation infrastructure is evidenced by 73 resident patent applications in 2021, illustrating ongoing but incremental research activity. The country’s technology export profile is modest yet meaningful, with high-technology exports totaling about 16.5 million US dollars in 2023. Environmental and energy infrastructure is gradually diversifying, with renewable energy accounting for 5.5% of total final energy consumption in 2022, highlighting early-stage progress toward a lower-carbon energy mix. Overall, Barbados benefits from a stable governance backdrop that supports investment in human capital, digital services, and basic research, while still having opportunities to scale up technological and energy innovations to match its income level and development goals.

Environment and Sustainability

Environmental sustainability in Barbados reflects a combination of vulnerability and progress. The level of water stress—freshwater withdrawal as a share of available freshwater resources—is very high at 87.5% in 2021, ranking 20, underscoring the island’s reliance on imported water and the importance of water management, efficiency, and resilience planning. Per capita greenhouse gas emissions exclude LULUCF at 3.5 t CO2e in 2023 (rank 115), a moderate level for a small island economy that benefits from a service-driven structure but must balance energy imports and fossil fuel use with evolving cleaner technologies. Renewable energy accounts for 5.5% of total final energy consumption (2022, rank 49), signaling progress toward diversification of the energy mix but indicating substantial potential for expansion to reduce vulnerability to energy price shocks and environmental risks. The combination of high water stress and relatively modest emissions highlights the critical need for integrated water and energy planning, climate resilience, and investment in efficiency and renewables to safeguard Barbados against climate variability and external price volatility while maintaining a high standard of living.