And she says the growth is expected to continue on this path for at least the next two years.

Dr Williams revealed that the economy expanded by 4.4 per cent between January and March this year. She says this was driven by the resurgence in tourism and manufacturing as well as the ongoing construction boom as the country prepares for the 2007 Cricket World Cup.

Manufacturing grew by about 2.4 per cent; growth in construction registered a 9.7 per cent increase; and tourism grew by just under one per cent compared to the previous quarter when it declined by 2.2 per cent.

Even though there was a 15.2 per cent reduction in cruise tourism, Dr Williams indicated that the 4.1 per cent increase in long-stay tourism compensated for the shortfall.

She also revealed that unemployment remained in the single digits while inflation "showed signs of moderating", declining from 6.1 per cent to 5.9 per cent.

According to the Central Bank Governor, if the International Monetary Fund's prediction that international oil prices will stabilise comes true, the inflation rate could further slow to 3.5 per cent.

She has projected that Barbados' economic growth will equal last year's performance, growing by about four per cent.