Such economies depend on foreign exchange for their growth, so the growth strategy must focus on increasing the productivity of the merchandise exports and services in which the country has a demonstrated competitive advantage, enhancing the product and moving up the value chain, and investment in value added products.
Barbados has comparative advantages in tourism and related services, international business and financial services, and branded export products such as rum, and it has a potential comparative advantage in green energy. Overall, the economy can grow only as fast as the growth of foreign exchange to finance the additional imports needed by the growing economy.