The capital of Barbados, Bridgetown, is located on the southwest of the island and is the country's chief port and commercial centre. It has a population of approximately 8,000 people.

For centuries the island’s sugar industry dominated the economy, and sugar still remains the country’s main agricultural product. However, following the Second World War Barbados underwent significant economic diversification and its stable social and political environment have helped it to attract significant amounts of foreign investment.

Tourism is now the island’s largest sector and principal foreign exchange earner, with the USA, the UK, Continental Europe and Canada being the four principal markets for the industry. There are also important financial and information service sectors, which have been encouraged by the establishment of low tax rates, double taxation agreements and exchange of information treaties. The manufacturing sector has also been developed, mainly around light industries such as the production of chemicals, electronics, food products, furniture, paper products and textiles.

The official currency is the Barbados (BDS) dollar and the exchange rate is fixed at BDS $1.98 to US$1. Barbados’ main trading partners include members of the Caribbean Community (CARICOM), the United Kingdom and the United States of America.

Barbados has excellent international transport connections. The Grantley Adams International Airport is located on the island’s south coast, 16 kilometres southeast of Bridgetown, and caters for numerous international flights. It is also a major hub in the Eastern Caribbean with connecting flights to several other island airports.

American Airlines, Air Canada and BWIA all operate services between Barbados and Miami, Montreal, New York and Toronto. BWIA also flies to London, Frankfurt and Zurich and British Airways operate flights to and from London. Local operators offer daily flights to and from Antigua, Grenada, St Lucia, St Vincent and several other nearby islands.

The Port of Bridgetown is one of the most modern ports in the Caribbean, equipped to handle a variety of cargo and with berthing facilities for ocean going freighters and large passenger vessels. In fact, approximately half a million cruise ship passengers arrive in the harbour each year. There are regular freight sailings to Europe and North America and a passenger/cargo vessel linking the island with St Lucia, St Vincent, Trinidad and Venezuela.

The general standard of education in Barbados is high and there is an adequate supply of professional, skilled and unskilled labour. According to the Continuous Household Sample Survey for 2002, produced by the Barbados Statistical Service, the island has a total labour force estimated at just over 143,000 people.