Barbados cuts national debt nearly in half under PM Mottley

The government of Barbados has reduced the debt burden by nearly half, from 180% to 93%. This major milestone has been driven by the Barbados Labour Party under the guidance of Prime Minister Mia Mottley with the vision to restore financial stability.

This decision by the Ministry of Finance is aimed to impact the economy in a positive way. The government is taking initiative to put less pressure on the public from debt payments and is trying to make room to invest in services, infrastructure and other opportunities for the people of the island nation.

During the financial year 2017-18, Barbados's debt to GDP Ratio had reached to 178.9%. This number was one of the highest levels anywhere in the world. At that level a lot of the country's revenue went towards serving the country’s debt resulting in a very less amount left towards building assets. It also impacted the country negatively as very few resources used to be left for public services, infrastructure and any other opportunities for the residents.

In January 2026, the government took decisive actions to turn around the country's finances. The government started with restructuring the domestic and international debt and then started implementing responsible fiscal management. The government also started supporting economic recovery and growth.

These prudent decisions by the Ministry of Finance helped in restoring the levels of debt to GDP Ratio. Where the Debt stood at 178.9% of GDP in 2017-18, in October 2025 Debt reduced to 99.8% of GDP. More progress was witnessed in January 2026 with Debt standing at 93.3% of GDP.

A key milestone has been achieved by the government of Barbados in restoring the country’s financial stability by successfully moving the Debt to GDP ratio below the mark of 100%.

This reduction adds to a significant improvement for the Bajans. With a lower debt burden it will give more financial breathing for Barbados. The government has a greater capacity to invest in public services, infrastructure, jobs and national development with less pressure from debt relative to the size of the economy.