Economy

Historically, the economy of Barbados had been dependent on sugarcane cultivation and related activities, but production in recent years has diversified into the manufacturing and tourism sectors. Offshore finance and information services have become increasingly important foreign exchange earners, and there is a healthy interest in the island's light manufacturing sector. In the last ten years the Government has been seen as business-friendly and economically sound. Since the late 1990s the island has seen an increasing construction boom, with the development and redevelopment of hotels, office complexes and homes.

The government continues its efforts to reduce unemployment, encourage direct foreign investment, and privatise remaining state-owned enterprises. Unemployment has been reduced from high levels of around 14% in the past to under 10% currently.

The economy contracted in 2001 and 2002 due to slowdowns in tourism, consumer spending and the impact of the September 11, 2001 attacks, but rebounded in 2003 and has shown growth since 2004. Traditional trading partners include Canada, the Caribbean Community (especially Trinidad and Tobago), the United Kingdom and the United States.

Tourism

The economy of Barbados is susceptible to various issues. Changes in tourist arrivals currently has a direct effect on the Barbados economy. In order to stabilise tourism in Barbados the government has announced an initiative to have one major sporting event held in Barbados per year. In 2006, the Sandy Lane Beach Hotel hosted the Golf world cup; in 2007, several matches of the Cricket World Cup were held on the island and the government promises that more big events will be lined up for 2008 and 2009. The Barbados government has also pursued 'home porting' agreements with several cruise-lines. As part of the deal, the Barbados government negotiates with cruise-lines, tourists fly to Barbados and are transported to the Deep Water Harbour in Bridgetown to begin their Caribbean cruise.

Aquaculture

Barbados has considered the sea surrounding the island a natural resource. For centuries, ocean-going fleets from Barbados would haul fresh fish and other marine species for food. Barbados was best known for the Flying Fish which once more heavily inhabited the warm waters around the island.

Fossil Fuels

Global pricing on fossil fuels has a direct impact on the Barbados economy. Barbados remains one of the few islands in the Caribbean with an oil/gas field within its territory. The island currently has an exploration agreement with US-based PhilipsConoco (and previously Mobil) around the Oistins town of Christ Church. Oil and gas supplies in Barbados have been considered small and are used most commonly for local consumption to decrease the need to import some of the island's fuel. Under an agreement with neighbouring Trinidad and Tobago since the 1990s, the government owned Barbados National Oil Company allows all crude to be refined via Trinidad and Tobago's booming oil industry. The Trinidad and Tobago government in turn provides an equivalent amount of processed fuel back to Barbados (minus some oil to recoup the cost of refining).

In an effort to further decrease the island's over dependence on oil, the Government of Barbados is investing in technologies to harness wind power for energy, as well as possibly using more of the islands' unused sugar cane for Ethanol fuel energy, similar to Brazil.

Cotton

The Government of Barbados has recently announced goals to restart Barbados' brand of cotton. Studies were carried out and found the island to be ideal for restarting a cotton industry. However, the Barbadian government continues to have problems finding enough workers for agriculture with many workers having to be lured from other Caribbean islands, Asian countries or Latin America.