Although Barbados’ exports have been increasing fairly substantially over the past few years, the country’s trade deficit has not fallen at the same rate, due to the high demand for imports, according to recently released data from the Central Bank and the Barbados Statistical Service.

For example, in 2005, when domestic exports surged by $75m, the visible trade deficit still increased, by $180m to almost $2.5 billion, However, when exports increased another $70m in 2006, the trade deficit fell back by $115m to $2.37 billion, as demand for imports directly related to Cricket World Cup preparations subsided. Last year, with exports increasing by another $198m, the trade deficit fell by $60m to $2.31 billion.
Meanwhile, with Barbados looking to increase its exports significantly over the next year or so, an analysis of the existing export performance shows that the more traditional ones still rule the roost.

Exports of spirits, chemicals, beverages and food continued to increase in 2007 while sugar and electrical components suffered decline in export sales, according to recently compiled figures from the Barbados Statistical Service.

Chemicals, which are believed to include paint and aerosol sprays, moved up by over $14m over 2006 to earn $74.6 million, the highest for any category in 2007, while Rum exports grew by over $20m to reach $67.5m , the second highest level for any export category. Note from the chart on this page that the Chemicals category has doubled since 2004.

After falling by about $5 million in 2006 over the previous year, Other Food & Beverages increased by $10m to reach $53.4m, the third highest level for the year, but Sugar exports declined slightly - for the fourth consecutive year - to post $37.3m for 2007 and Electrical Components declined by over $10m from nearly $40m to end the year at $27.6m.

Other potential growth categories for which 2007 figures were not available at press time include Petroleum Crude, of which Barbados exported $46.2m dollars’ worth in 2006, some $13m more than in 2005, and Lime, Cement, Etc., which declined slightly to $33.1m in 2006 from $34.6m in 2005.•