Obligation Barbados 7% ( USP48864AD77 ) en USD

Barbados

100 % ▲

Barbade

USP48864AD77 ( en USD )

7% par an ( paiement semestriel )

04/08/2022 - Obligation échue

Prospectus brochure de l'obligation Barbados USP48864AD77 en USD 7%, échue

100 000 USD

200 000 000 USD

P48864AD7

Barbade est une île de l'est des Caraïbes, connue pour ses plages de sable blanc, son histoire riche, son rhum et ses récifs coralliens.

L'obligation émise par la Barbade (ISIN : USP48864AD77, CUSIP : P48864AD7), d'un montant total de 200 000 000 USD, avec un taux d'intérêt de 7%, une taille minimale d'achat de 100 000 USD, échéant le 04/08/2022 et payant des coupons deux fois par an, a atteint sa maturité et a été remboursée à 100% de sa valeur nominale en USD.

OFFERING CIRCULAR
US$200,000,000
Government of Barbados
7.00% Notes Due 4 August 2022
The US$200,000,000 aggregate principal amount of 7.00% Notes due 4 August 2022 (the
"Notes") of the Government of Barbados (the "Government" or, unless the context otherwise
requires, "Barbados") will mature and will be repaid at par on 4 August 2022. Interest on the
Notes will be payable semi-annually in arrears in US Dollars on 4 February and 4 August of each
year, commencing on 4 February 2011, at a rate of 7.00% per annum. Payments in respect of the
Notes will be made without deduction or withholding for or on account of taxes imposed by
Barbados to the extent set forth under "Terms and Conditions of the Notes--Taxation".
Application has been made for the Notes to be admitted to the official list of the
Luxembourg Stock Exchange and to be admitted for trading on the Euro MTF market. The Notes
are represented by the Restricted Global Note Certificate and the Unrestricted Global Note
Certificate (as defined under "Terms and Conditions of the Notes--Form, Denomination and
Status").
Issue Price: 98.411%
plus accrued interest, if any, from 4 August 2010
Delivery of the Notes in book entry form only will be made on or about 4 August 2010
through the facilities of The Depository Trust Company ("DTC"), Euroclear Bank S.A./N.V.
("Euroclear") and Clearstream Banking, société anonyme ("Clearstream, Luxembourg").
The Notes have not been and will not be registered under the United States Securities Act
of 1933, as amended (the "Securities Act"). The Notes are being offered and sold in offshore
transactions in reliance on Regulation S under the Securities Act ("Regulation S") and in the
United States to Qualified Institutional Buyers ("QIBs") pursuant to Rule 144A under the
Securities Act ("Rule 144A"). Prospective purchasers are hereby notified that the sellers of
Notes represented by the Restricted Global Note Certificate may be relying on the exemption
from the registration requirements of Section 5 of the Securities Act provided by Rule 144A. For
a description of certain restrictions on resale, see "Transfer Restrictions".
Deutsche Bank Securities
The date of this Offering Circular is 27 July 2010.

ii

TABLE OF CONTENTS
Page
Page
PRESENTATION OF CERTAIN
PUBLIC FINANCE . . . . . . . . . . . . . . . . . . . . . .
69
INFORMATION . . . . . . . . . . . . . . . . . . . . . .
1
Overview . . . . . . . . . . . . . . . . . . . . . . . .
69
SUBMISSION TO JURISDICTION . . . . . . . . . . .
2
Fiscal Policy . . . . . . . . . . . . . . . . . . . . . .
69
FORWARD-LOOKING STATEMENTS . . . . . . . .
4
Revenues and Expenditures . . . . . . . .
70
SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Revenues . . . . . . . . . . . . . . . . . . . . . . . .
72
General . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Expenditures . . . . . . . . . . . . . . . . . . . . .
74
Economy . . . . . . . . . . . . . . . . . . . . . . . . .
5
Consolidated Fund . . . . . . . . . . . . . . . .
76
Recent Developments . . . . . . . . . . . . .
7
PUBLIC DEBT . . . . . . . . . . . . . . . . . . . . . . . .
77
SELECTED ECONOMIC INDICATORS . . . . . . . .
8
Overview . . . . . . . . . . . . . . . . . . . . . . . .
77
THE OFFERING . . . . . . . . . . . . . . . . . . . . . . .
10
Debt to GDP Ratio . . . . . . . . . . . . . . . . .
78
TERMS AND CONDITIONS OF THE NOTES . . .
13
Domestic Debt . . . . . . . . . . . . . . . . . . . .
79
RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . .
24
External Debt . . . . . . . . . . . . . . . . . . . . .
80
USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . .
26
Contingent Liabilities . . . . . . . . . . . . . .
83
BARBADOS . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Contemplated Borrowings . . . . . . . . .
84
History, Geography, Population and
CLEARING AND SETTLEMENT . . . . . . . . . . . .
85
Society . . . . . . . . . . . . . . . . . . . . . . . .
27
DTC . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
85
Constitution and Government . . . . . .
28
Euroclear and Clearstream,
International Organisations . . . . . . . . .
30
Luxembourg . . . . . . . . . . . . . . . . . . . .
85
Environmental Policy . . . . . . . . . . . . . .
31
Initial Settlement . . . . . . . . . . . . . . . . . .
85
ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
Secondary Market Trading . . . . . . . . .
86
General . . . . . . . . . . . . . . . . . . . . . . . . . .
32
TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . .
89
Recent Economic Performance . . . . . .
33
Barbados Tax Considerations . . . . . . .
89
Medium-Term Economic Strategy . . .
35
United States Tax Considerations . . .
89
Gross Domestic Product . . . . . . . . . . .
39
Internal Revenue Service Circular 230
Principal Sectors of the Economy . . .
41
Disclosure . . . . . . . . . . . . . . . . . . . . . .
91
Inflation . . . . . . . . . . . . . . . . . . . . . . . . . .
52
Proposed European Directive on the
Employment and Labour . . . . . . . . . . .
52
Taxation of Savings . . . . . . . . . . . . .
91
FINANCIAL SYSTEM . . . . . . . . . . . . . . . . . . .
55
SUBSCRIPTION AND SALE . . . . . . . . . . . . . . .
92
Central Bank of Barbados . . . . . . . . . .
55
Selling Restrictions . . . . . . . . . . . . . . . .
93
Banking and Financial Institutions . . .
56
TRANSFER RESTRICTIONS . . . . . . . . . . . . . . .
95
Liquidity and Interest Rates . . . . . . . . .
58
OFFICIAL STATEMENTS . . . . . . . . . . . . . . . . .
97
Capital Markets . . . . . . . . . . . . . . . . . . .
59
VALIDITY OF NOTES . . . . . . . . . . . . . . . . . . .
98
THE EXTERNAL ECONOMY . . . . . . . . . . . . . .
61
GENERAL INFORMATION . . . . . . . . . . . . . . . .
99
Overview . . . . . . . . . . . . . . . . . . . . . . . .
61
Due Authorisation and Sinking
Current Account . . . . . . . . . . . . . . . . . .
62
Fund . . . . . . . . . . . . . . . . . . . . . . . . . . .
99
Capital Account . . . . . . . . . . . . . . . . . . .
64
Listing . . . . . . . . . . . . . . . . . . . . . . . . . . .
99
Trade Policy and Reform . . . . . . . . . . .
64
Litigation . . . . . . . . . . . . . . . . . . . . . . . . .
99
Foreign Investment . . . . . . . . . . . . . . . .
66
Availability of Documents . . . . . . . . . .
101
Net International Reserves and
Clearing . . . . . . . . . . . . . . . . . . . . . . . . . .
101
Liquid International Reserves . . . . .
66
Miscellaneous . . . . . . . . . . . . . . . . . . . .
101
Exchange Rates . . . . . . . . . . . . . . . . . . .
68
Exchange Controls . . . . . . . . . . . . . . . .
68
iii

STABILISATION
DEUTSCHE BANK SECURITIES INC. ("DEUTSCHE BANK") FOR ITS OWN ACCOUNT MAY
OVER-ALLOT OR EFFECT TRANSACTIONS IN ANY OVER-THE-COUNTER MARKET OR
OTHERWISE, WHICH STABILISE OR MAINTAIN THE MARKET PRICE OF THE NOTES AT A
LEVEL WHICH MIGHT NOT OTHERWISE PREVAIL IN THE OPEN MARKET (BUT IN DOING SO,
DEUTSCHE BANK SHALL ACT AS PRINCIPAL AND NOT AS AGENT OF THE ISSUER). SUCH
STABILISING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. SUCH STABILISING
SHALL BE CONDUCTED IN ACCORDANCE WITH ALL APPLICABLE LAWS AND RULES. ANY
LOSS RESULTING FROM THE OVER-ALLOTMENT OR STABILISATION SHALL BE BORNE, AND
ANY PROFIT ARISING THEREFROM SHALL BE BENEFICIALLY RETAINED, BY DEUTSCHE BANK.
This Offering Circular has been prepared by the Government solely for use in connection
with the proposed offering of the Notes described herein. You are authorized to use this
Offering Circular solely for the purpose of considering the purchase of the Notes.
This Offering Circular constitutes a prospectus for the purpose of the Luxembourg Law
dated 10 July 2005 on prospectuses for securities (the "Prospectus Act 2005").
The Government, having made all reasonable enquiries, hereby confirms that as of the date
hereof this Offering Circular contains all information that is in the context of the issue and
offering of the Notes material; that such information is true and accurate in all material respects
and is not misleading in any material respect; that any opinions, predictions or intentions
expressed herein on the part of the Government are honestly held or made and are not
misleading in any material respect; that all proper enquiries have been made to ascertain and to
verify the foregoing; and that this Offering Circular does not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements herein, in
the light of the circumstances under which they are made, not misleading. The Government
accepts responsibility accordingly.
The Government has not authorised the making or provision of any representation or
information regarding the Government or the Notes other than as contained in this Offering
Circular or as approved for such purpose by the Government. Any such representation or
information should not be relied upon as having been authorised by the Government, the
Manager (as defined under "Subscription and Sale") or any of its affiliates. Neither the delivery
of this Offering Circular nor the offering, sale or delivery of any Note shall under any
circumstances imply that there has been no change in the condition (financial or otherwise) of
the Government since the date hereof.
The information contained in this Offering Circular has been provided by the sources
identified herein. No representation or warranty, expressed or implied, is made and no
responsibility is accepted by the Manager as to the accuracy or completeness of such
information, and nothing contained in this Offering Circular is, or shall be relied upon as, a
promise or representation by the Manager as to the past or the future. Each offeree, by
accepting delivery of this Offering Circular, agrees to the foregoing.
The distribution of this Offering Circular and the offering, sale and delivery of the Notes in
certain jurisdictions is restricted by law. Persons into whose possession this Offering Circular
comes are required by the Issuer and the Manager to inform themselves about and to observe
such restrictions. This Offering Circular does not constitute, and may not be used for or in
connection with, any offer to, or solicitation by, anyone in any jurisdiction in which, or to or by
any person to or by whom, such offer or solicitation would be unlawful.
iv

The Notes will not be registered under the Securities Act and may not be directly or
indirectly offered or sold in the United States or to or for the benefit of a U.S. person (as
defined in Regulation S) except pursuant to an exemption from, or transaction not subject to,
the registration requirements under the Securities Act. The Notes are subject to restrictions on
transferability and resale and may not be transferred or resold except as permitted under the
Securities Act and the applicable securities laws of any state of the United States. Each person
receiving this Offering Circular acknowledges that this Offering Circular does not contain all of
the information that would be included in a prospectus for this offering were this offering
registered under the Securities Act. See "Transfer Restrictions" and "Subscription and Sale".
The Notes will not be offered or sold in Barbados.
Each purchaser of the Notes must comply with all applicable laws and regulations in force
in any jurisdiction in which it purchases, offers or sells the Notes or possesses or distributes this
Offering Circular and must obtain any consent, approval or permission required by it for the
purchase, offer or sale by it of the Notes under the laws and regulations in force in any
jurisdiction to which it is subject or in which it makes such purchases, offers or sales, and
neither the Government nor the Manager shall have any responsibility therefor.
The Government and the Manager reserve the right to reject any offer to purchase any of
the Notes, in whole or in part, for any reason and the right to sell less than the principal amount
of the Notes offered hereby or for which any prospective purchaser has subscribed. The offer
can be withdrawn at any time before the closing of the issue of the Notes and is specifically
made subject to the terms described in this Offering Circular, the Subscription Agreement (as
defined herein) and the Notes.
This Offering Circular should not be considered as a recommendation by the Government
or the Manager that any recipient of this Offering Circular should subscribe or purchase any
Notes. Each recipient of this Offering Circular shall be taken to have made its own investigation
and appraisal (financial or otherwise) of Barbados.
NOTICE TO NEW HAMPSHIRE RESIDENTS ONLY
NEITHER THE FACT THAT A REGISTRATION STATEMENT OR AN APPLICATION FOR A
LICENSE HAS BEEN FILED UNDER CHAPTER 421-B OF THE NEW HAMPSHIRE REVISED
STATUTES ("RSA 421-B") WITH THE STATE OF NEW HAMPSHIRE NOR THE FACT THAT A
SECURITY IS EFFECTIVELY REGISTERED OR A PERSON IS LICENSED IN THE STATE OF NEW
HAMPSHIRE CONSTITUTES A FINDING BY THE SECRETARY OF STATE THAT ANY DOCUMENT
FILED UNDER RSA 421-B IS TRUE, COMPLETE AND NOT MISLEADING. NEITHER ANY SUCH
FACT NOR THE FACT THAT AN EXEMPTION OR EXCEPTION IS AVAILABLE FOR A SECURITY
OR A TRANSACTION MEANS THAT THE SECRETARY OF STATE HAS PASSED IN ANY WAY
UPON THE MERITS OR QUALIFICATIONS OF, OR RECOMMENDED OR GIVEN APPROVAL TO,
ANY PERSON, SECURITY OR TRANSACTION. IT IS UNLAWFUL TO MAKE, OR CAUSE TO BE
MADE, TO ANY PROSPECTIVE PURCHASER, CUSTOMER OR CLIENT ANY REPRESENTATION
INCONSISTENT WITH THE PROVISIONS OF THIS PARAGRAPH.
The Notes will constitute general, direct and, subject as set forth in "Terms and Conditions
of the Notes--Negative Pledge", unsecured obligations of the Government and will rank pari
passu, without any preference among themselves. The payment obligations of the Government
under the Notes will at all times rank at least pari passu with all other general, direct and
unsecured External Indebtedness (as defined under "Terms and Conditions of the Notes--
Negative Pledge") of the Government, present and future.
v

PRESENTATION OF CERTAIN INFORMATION
Financial data and statistical information included in this Offering Circular is the latest
official data and information available at the date hereof. Financial data and statistical
information provided in this Offering Circular may be subsequently revised in accordance with
the ongoing maintenance by Barbados of its economic data and statistical information, and
such revised data and information will not be distributed by Barbados to any holder of the
Notes. Provisional financial data and statistical information for 2009, the first quarter of 2010 or
the fiscal year 2009/2010, in particular, may be subject to revision (as these are estimates based
on the latest financial data) and are indicated by a superscript "P" in applicable tables.
Unless indicated to the contrary, where estimates are given in this Offering Circular, they
are estimates of the Central Bank of Barbados (the "Central Bank") or the Ministry of Finance of
Barbados (the "Ministry of Finance") and are indicated by a superscript "E" in applicable tables.
Unless otherwise stated, references to a year (e.g., "2009") refer to the relevant calendar year
ended 31 December and references to a fiscal year or FY (e.g., "FY 2009/2010") refer to the fiscal
year of Barbados which runs from 1 April to the following 31 March. References to the
"Government" exclude the state-owned enterprises of Barbados. See "Public Finance--State--
Owned Enterprises".
Unless otherwise indicated, all information in this Offering Circular is given as at the date of
this Offering Circular, or as of the most recently available date. Totals in certain tables in this
Offering Circular may differ from the sum of the individual items in such tables, due to
rounding.
In this Offering Circular, "real GDP" means real Gross Domestic Product at constant 1974
prices, "nominal GDP" means, unless otherwise stated, nominal Gross Domestic Product at
market prices and references to GDP per capita are to GDP per capita calculated at basic prices,
which is nominal GDP at market prices less net taxes on products plus financial intermediary
services indirectly measured ("FISIM"), divided by the median population.
In this Offering Circular, all references to "BDS$" and "Barbados Dollars" are to the lawful
currency of Barbados; all references to "US Dollars" and "US$" are to the lawful currency of the
United States of America; all references to "Euro" are to the single currency of participating
member states of the European Union; all references to "Japanese Yen" are to the lawful
currency of Japan; all references to "Pounds Sterling" are to the lawful currency of the United
Kingdom; and all references to "Chinese RMB" are to the lawful currency of the People's
Republic of China. The Barbados Dollar currently is fixed to the US Dollar at an exchange rate of
BDS$2.00 to US$1.00 and, solely for the convenience of the reader, Barbados Dollar figures are
translated into US Dollars at such rate in this Offering Circular. This translation should not be
construed as a representation that any such amounts have been, would have been or could be
converted at this or any other exchange rate.
1

SUBMISSION TO JURISDICTION
Barbados is a foreign sovereign state. Consequently, it may be difficult for investors to
obtain or realise upon judgments of courts in the United States against the Government.
The Government pursuant to the Agency Agreement (as defined in "Terms and Conditions
of the Notes") and pursuant to the Terms and Conditions of the Notes will irrevocably submit to
the jurisdiction of any federal court in the Southern District of New York, any state court in the
Borough of Manhattan, The City of New York, any courts of England and any competent court in
Barbados over any suit, action or proceeding against the Government or its properties, assets or
revenues with respect to the Notes or the Agency Agreement (a "Related Proceeding"). The
Government will irrevocably waive and agree, to the fullest extent permitted by applicable law,
not to plead any immunity (sovereign or otherwise) from the jurisdiction of such courts in
connection with any action arising out of or in connection with any Related Proceeding and,
without limiting the generality of the foregoing, the Government will agree that such waivers
shall have the fullest scope permitted under the United States Foreign Sovereign Immunities
Act of 1976. The Government in the Agency Agreement and in the Notes will also waive, to the
fullest extent permitted under applicable law, any objection to Related Proceedings in such
courts whether on the grounds of venue, residence or domicile or on the ground that the
Related Proceedings have been brought in an inconvenient forum.
Final and conclusive judgments against the Government for the payment of a sum of
money rendered by a federal or state court sitting in the City of New York in the United States,
are not directly enforceable in Barbados by the Barbados High Court. However, an action can be
brought in the Barbados High Court to obtain a judgment of the Barbados High Court on a final
and conclusive judgment against the Government for the payment of a sum of money rendered
by a federal or state court sitting in the City of New York in the United States. The Barbados
High Court will recognise and enforce a final and conclusive judgment rendered by a federal or
state court sitting in the City of New York in the United States under common law principles
applied by the Barbados High Court provided: (A) in the case of a judgment in personam: (i) that
the original court was a court of competent jurisdiction according to the rules of conflict of laws
applied by the High Court of Barbados; (ii) the judgment is not impeachable on the ground that
it was obtained by fraud, or that its recognition or enforcement would be contrary to Barbadian
principles of public policy, or that it was obtained in proceedings which were contrary to natural
justice; and (iii) the judgment is for a definite sum of money (other than a sum payable in
respect of taxes or penalties) and that it finally and conclusively determines the rights and
liabilities of the parties to it so as to be res judicata where pronounced and that such judgment
has not been satisfied; (B) in the case of a judgment in rem relating to movables, that the
movables were located in the country of the original court at the time of the proceedings; and
(C) in the case of a judgment in rem relating to immovables, that the immovables were located
in the country of the original court at the time of the proceedings.
Enforceability in Barbados of a final judgment against the Government for the payment of a
definite sum of money rendered by a court in the United Kingdom, will be registered by the
Barbados High Court in accordance with the provisions of the Foreign and Commonwealth
Judgments (Reciprocal Enforcement) Act Cap. 201 (the "FCJA"), subject to certain requirements
described below. Under the FCJA, a judgment by a court in the United Kingdom is enforceable
by the Barbados High Court if that judgment is registered in the Barbados High Court under the
FCJA. No judgment shall be ordered to be registered by the Barbados High Court if it
determines that: (a) the original court acted without jurisdiction; (b) the defendant/judgment
debtor, being a person who was neither carrying on business nor ordinarily resident within the
jurisdiction of the English court, did not voluntarily appear or otherwise submit or agree to
2

submit to the jurisdiction of that court; (c) the judgment debtor, being the defendant in the
proceedings, was not duly served with the process of the English court and did not appear,
notwithstanding that he was ordinarily resident or was carrying on business within the
jurisdiction of that court or agreed to submit to the jurisdiction of that court; (d) the judgment
was obtained by fraud; (e) the judgment debtor satisfies the Barbadian court either that an
appeal is pending, or that he is entitled and intends to appeal, against the judgment; or (f) the
judgment was in respect of a cause of action which for reasons of public policy or for some
other similar reason could not have been entertained by the Barbados High Court.
The registration of a judgment may be set aside if it is determined by the Barbados High
Court that the matter in dispute in the proceedings in the original court had, prior to the date of
the judgment in the original court, been the subject of a final and conclusive judgment by a
court having jurisdiction of the matter.
3

FORWARD-LOOKING STATEMENTS
This Offering Circular includes forward-looking statements that reflect the Government's
current views with respect to future events. The words "expects", "intends", "anticipates",
"believes", "projects", "estimates" and similar expressions identify forward-looking
statements. These forward-looking statements are based upon estimates and assumptions
made by the Government or its officials that, although believed to be reasonable, are subject to
certain known and unknown risks and uncertainties. These risks and uncertainties include,
among others, the following:
·
actual rates of change in GDP, Barbados' financial condition and budgeted revenues and
expenditures,
·
Barbados' ability to increase Government revenues or reduce expenditures,
·
economic conditions globally (but in particular in the United States, the United Kingdom
and Canada) that may result in lower demand for tourism,
·
declines in tourism due to competition from other countries,
·
the general political, economic and business conditions globally and in Barbados,
·
the financial stability of Barbados,
·
changes in interest rates,
·
a significant reduction in the foreign currency reserves of Barbados,
·
governmental, statutory, regulatory or administrative initiatives affecting financial
institutions in Barbados and Barbados itself,
·
the financial condition and liquidity of banks and other financial institutions in Barbados,
and
·
an adverse change in economic conditions in Barbados, and other factors referenced in
this Offering Circular.
All forward-looking statements contained in this Offering Circular are expressly qualified in
their entirety by such factors. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The Government disclaims any
obligation or undertaking to update publicly or revise any forward-looking statement contained
in this Offering Circular, whether as a result of new information, future events or otherwise.
Future circumstances could cause actual results to differ materially from historical results or
those anticipated.
4

SUMMARY
The following summary is qualified in its entirety by, and should be read in conjunction
with, the more detailed information contained elsewhere in this Offering Circular.
General
Barbados is the most easterly of the Caribbean islands, situated approximately 300 miles off
the north coast of South America. As at 31 December 2009, Barbados had an estimated
population of 275,000. The capital of Barbados is Bridgetown, which is situated on the
southwest coast of the island and, including its surrounding areas, has a population of
approximately 80,000. English is the official language of Barbados.
Barbados is a former British colony that became independent in 1966. A member of the
Commonwealth of Nations, Barbados has a constitution founded on the British model of
parliamentary democracy and comprises an elected House of Assembly and an appointed
Senate. Since independence, the island has had a history of political stability. Governments are
elected for up to five years. The present Government, being formed by the Democratic Labour
Party (the "DLP"), came to office in 2008. Under the Barbadian Constitution, the next general
election in Barbados is required to take place no later than April 2013.
Barbados has emphasised the development of its human resources, resulting in a literate
and trained labour force. Barbados ranks very high in the human development index as
compiled by the United Nations 2009 Human Development Report (United Nations
Development Programme ("UNDP")) with levels which are comparable to those observed from
industrial countries and by leading small emerging economies such as Singapore and Malta.
The Barbadian educational and healthcare systems are funded almost entirely by the
Government. Life expectancy was 77.0 years in 2007. The literacy rate was 99.7% as of 2005,
according to the UNDP. Barbados achieved a relatively high GDP per capita (compared to other
Caribbean Community and Common Market ("CARICOM") countries) of US$11,909.5 for the
year 2009.
Economy
Barbados is a small, diversified and service-based economy, with an educated workforce, a
solid social and economic infrastructure and a historically stable growth performance due in
part to high levels of human development and continued political stability. Tourism,
international business and financial services and manufacturing are the principal sectors of the
economy, with tourism and manufacturing accounting for approximately 14.4% and 4.9% of real
GDP in 2009, respectively. Business and other services, of which international business and
financial services are the principal components, accounted for approximately 19.1% of real GDP
in 2009. Tourism, however, is the most important economic driver of the Barbadian economy
due to its multiplier effect on other economic sectors (in particular construction and retail trade),
significant contribution to foreign exchange earnings and inducement for tourism-related
private sector economic investment.
Barbados' real GDP has grown by an average rate of 2% over the last 17 years. Led by
activity in the tourism sector and new private-sector investment (largely tourism-related), the
Barbadian economy registered eight consecutive years of economic growth prior to 2001. The
strength of private investment enabled the economy to achieve an average real growth rate of
2.8% per annum between 1993 and 2000, while the population size remained relatively
5