*  *  *  While the current turbulence in the US financial markets is unlikely to have a significant impact on Barbados immediately, as the US economy slows or goes into recession as it copes with these difficulties, the result could be a slowdown in the growth of the Barbados economy going forward.
Recession in the UK and some European economies would also impact adversely on our tourism prospects and our investment inflows. However, the Barbados financial system should remain sound although there may be some loss in value (realised and unrealised) on US dollar fixed income securities held by financial institutions, including the Central Bank, as securities’ prices in the US markets tumble.