Barbados Economy Is Barbados a wealthy country? Barbados is the wealthiest and one of the most developed countries in the Eastern Caribbean and enjoys one of the highest per capita incomes in the region. Historically, the Barbadian economy was dependent on sugarcane cultivation and related activities.

The term "Third World" is a Cold War-era classification that originally referred to non-aligned nations, but in 2026, it is largely considered an obsolete and inaccurate way to describe Barbados. Historically, Barbados was classified as a developing nation; however, in recent decades, it has achieved one of the highest standards of living in the Caribbean. The United Nations and other international bodies often classify Barbados as a "High Human Development" country. It boasts a high literacy rate, a robust middle class, and a stable, democratic government. In 2011, the OECD even removed Barbados from its list of developing nations, recognizing it as a developed economy. While it still faces challenges typical of small island nations—such as vulnerability to climate change and external economic shocks—referring to Barbados as "Third World" ignores its sophisticated infrastructure, thriving tourism and financial services sectors, and its status as one of the wealthiest and most stable nations in the Western Hemisphere.