The International Monetary Fund (IMF) says the Barbados economy continues to recover due to a stronger tourism performance but warned that improving public finances remains a critical challenge.

It said that economic growth in 2016 was estimated to have been 1.6 per cent and to have accelerated in the first quarter of 2017 to two per cent.

The IMF, which said it is ready to assist the Freundel Stuart government through continued policy dialogue and technical assistance, has ended a two week mission here.

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