In 2020, the COVID-19 pandemic was a major shock to economic activity and slowed progress in economic reform and transformation. The first confirmed case of the virus was reported in mid-March, and the number of cases subsequently increased to 383 persons based on 69,718 administered tests at December 31, 2020. There were seven fatalities attributed to the virus. The pandemic contributed to a sharp contraction in real gross domestic product (GDP) and a spike in unemployment, almost eroding the gains from the recent domestic and external debt restructuring. Despite the challenges, Barbados continued the implementation of its economic reforms aimed at restoring fiscal and debt sustainability and protecting the foreign reserves. A recovery in economic activity is expected in 2021, although uncertainty remains about the strength of this upturn.