##ian economy in 2009, with virtually all sectors suffering adverse effects. tourism receipts, remittances and private capital inflows into barbados all declined, as global output contracted, international credit markets remained depressed and unemployment rose to double - digits in barbados ’ major trading partners. moreover, the unanticipated depth and protracted duration of the crisis resulted in outcomes markedly worse than were projected before the crisis deepened in september 2008 ( see table 1 ). prior to the onset of the global economic recession, the barbadian economy was forecast to slow to 1. 8 % in 2008 and then accelerate to 2. 8 % in 2009. however, it turned out that gross domestic product ( gdp ) stagnated in 2008, and a significant contraction of 5. 3 % is estimated for 2009. the crisis is estimated to have cost barbados almost 10 percentage points in economic growth over the two years. this in large measure reflected a drop in longstay arrivals over the two - year period of roughly 13. 3 % below the initial forecast, and a 3. 9 % decline in cruise passenger arrivals over the two years. the poor performance of tourism depressed other major sectors of the economy, which provide services to the tourism sector. the crisis - related loss of foreign exchange from tourism was approximately $ 170 million. this, coupled with an estimated shortfall of $ 465 million in private capital net inflows relative to initial forecasts, were the main factors in the estimated nir shortfall of approximately $ 743 million, compared to pre - september 2008 expectations. however, foreign reserves were augmented by $ 232 million from a bond issue arranged by scotiabank in the trinidad and tobago market, and by the allocation to barbados of $ 170 million in special drawing rights. the scotiabank bond issue helped to support a widening fiscal deficit that was substantially greater than pre - crisis forecasts. because of the contraction in economic activity, government revenue was about 10 % ( or $ 548. 5 million ) less than the initial forecasts. the growing deficit was compounded by a greater than anticipated expansion in government expenditure, to the tune of $ 144. 7 million, 2. 5 % more than expected. table 1 : estimated impact of the economic and financial crisis in 2009 source : central bank of barbados estimates * this represents the difference between the original forecast and the actual. * * figure excludes the $ 170. 1 million sdr allocation and the $ 232. 1 million proceeds from the sovereign

4. 3 ) ( 2. 0 ) ( 1. 8 ) ( 6. 4 ) ( 8. 4 ) 10. 9 502. 5 113. 4 162. 5 103. 0 sources : accountant general and central bank of barbados p : provisional table10 : summary accounts of the banking system ( $ million ) 2009p net international reserves 1, 607. 7 1, 691. 2 2, 247. 7 1, 749. 4 1, 929. 3 monetary authorities 1, 235. 7 1, 194. 1 1, 548. 0 1, 356. 9 1, 503. 0 commercial banks net domestic assets credit to public sector 371. 9 497. 1 699. 7 392. 5 426. 3 3, 587. 3 4, 085. 9 4, 340. 7 5, 006. 4 5, 112. 7 380. 8 337. 1 452. 1 central government ( net ) 650. 5 433. 1 533. 6 732. 8 805. 0 other public sector - 269. 7 - 95. 9 - 81. 5 - 216. 0 - 208. 2 credit to rest of financial system 312. 9 343. 2 482. 1 477. 9 659. 3 liabilities to other financial institutions - 516. 2 - 631. 9 - 925. 4 - 808. 8 - 692. 2 credit to non - financial private sector 3, 791. 8 4, 292. 9 4, 513. 5 5, 010. 9 5, 070. 2 liabilities to the non - financial private sector 5, 195. 0 5, 777. 1 6, 588. 3 6, 755. 8 6, 876. 1 1, 563. 3 1, 794. 7 2, 004. 8 1, 978. 1 1, 892. 9 demand deposits time deposits savings deposits currency in circulation 491. 1 590. 4 2, 692. 1 2, 964. 7 3, 327. 6 3, 584. 2 3, 900. 1 465. 0 763. 9 590. 7 713. 5 448. 6 552. 7 516. 9 492. 1 479. 9 492. 7 source : the central bank of barbados p : provisional