In 1625 when Barbados was first colonized, the main income earner was that of the Tobacco and Cotton Industry. However, the sugar cane industry was growing at a fast rate throughout the Caribbean and Barbados was forced to refocus its' attention onto this sector in order to remain competitive.
Barbados gained independence in 1966 at which time it became a 'globally upper-middle-income economy' which was no longer dependent on the sugar cane industry but based on tourism and the development of the offshore sector.
In the 1990's Barbados experienced a recession and only began to grow once more in 1993. Since this period, the growth rates have been estimated to be based between 3% and 5%.
Sugar cane remained the highest income earner for the island until Barbados' independence on November 30, 1966. After this time, the government sought ways to diversify and expanded into areas outside of Agriculture. Visitors from Canada and the United Kingdom assisted with the development of the Tourism Industry and the Barbadian economy as a whole. In 1961 the Deep Water Harbour was completed allowing ocean cargo vessels and cruise ships access to port facilities and a safe harbor.
By the 1970's international companies became increasingly interested in Barbados. In 1972 the Central Bank of Barbados was formed, breaking ties with the East Caribbean Currency Authority and in 1975 the Barbados dollar was changed to reflect a consistent exchange rate with that of the United States of America's dollar.
The manufacturing industry was recognized as a major financial contributor to the sustainable economy of the island by the early 1990's. Unfortunately, this sector was severely affected in the late 1990's as many companies moved to lower cost Asian economies. |
