The Inter-American Development Bank has weighed in on ongoing efforts to turn around the Barbados economy in its most recently released Caribbean Region Quarterly bulletin.
The IDB says short-term stabilisation in Barbados must be followed by structural reforms.
It also says in the short run, external and fiscal imbalances are the key constraints to growth and development.
In addition, the bank says the country should protect its social achievements.
The IDB adds for the medium to long term, reforms that unlock the country's growth potential are key.
It says maintaining adequate infrastructure, reducing red tape, and improving the environment to invest and do business will also be critical.
The Bank notes this will be important both throughout the fiscal consolidation process and to foster greater competitiveness, private sector development, and ultimately long-term growth.