BRIDGETOWN, Barbados (CMC) — The Central Bank of Barbados (CBB) Tuesday said that economic growth for the island is encouraging and is forecasting growth of about two per cent for the next five years.

CBB Governor Dr DeLisle Worrell reviewing the economic performance of Barbados for 2016, said in the near term, the engines of growth will be the island’s highly regarded tourism services and construction projects with a total value of BDS$2.6 billion, in tourism, infrastructure, energy and housing.

“Initiatives to restore growth in international business and financial services include targeted marketing of Barbados’ impeccable reputation, the development of new markets and products, the exploitation of market niches, and the extension of Barbados’ treaty network.

“The renewable energy sector is expected to maintain its exponential rate of growth, making a significant contribution to growth by the end of the five-year period,” said Worrell.

He said that after turning the corner in 2015, growth strengthened in 2016, thanks to the investments made to reinforce Barbados’ competitive tourism sector in recent years.

“It is estimated that the Barbados economy expanded by 1.6 per cent in 2016, with an associated decline in unemployment to 10 per cent for the four quarters ending in September last year. Once again, there was no inflation and the retail price index fell by 0.8 per cent as at June, 2016.”

Worrell said the growth in arrivals will result in an improvement in the island’s share of the Caribbean market, building on the 2.6 per cent market share captured in 2015, from 2.4 per cent in 2014.

Barbados is the seventh most competitive tourism destination in all of the Americas, according to the 2015 Travel and Tourism Competitiveness Report. The countries that score more highly are the U.S, Canada, Mexico, Brazil, Costa Rica and Panama.

Worrell said that the factors that contribute to the island’s competitive strength include health, safety and security and the availability and use of information technology.