The inflation rate was negative, in large part due to corrections in the Value Added Tax, in particular the exemption of a number of basic food items. Foreign exchange holdings declined during 1998. This is the first fall since 1991. The foreign exchange holdings at the end of 1998 equal 12 weeks of imports. Another source of growth has been financial and other services.
Sugar production is in long-term decline.
Over the past decade the agricultural and manufacturing sectors have shown little growth overall. As a country with a relatively narrow resource base and limited production, Barbados imports much of what it needs to survive, including energy, food, and most consumer products. As the Barbadian economy continues to grow, trade opportunities will increase in parallel for U.S. exporters of goods to build and supply hotels, restaurants, and new residential construction. Barbadian attitudes toward the United States and toward American business are generally favorable. Approximately 40 percent of the country's imports are sourced from the United States.