Antigua and Barbuda’s economy continues its post-pandemic rebound, with real output surpassing pre-pandemic levels in 2024.
Growth was estimated at 4.3%, fueled by a strong tourism sector and major international events, including the 4th International Conference on Small Island Developing States and the T20 Cricket World Cup.
Inflation remained elevated, mainly due to higher indirect taxes and increased costs in communication.
The country’s fiscal health has improved significantly. Public debt, which stood at 100% of GDP in 2020, has dropped to 67% in 2024, thanks to stronger government revenues and a growing economy. However, financing challenges persist, with significant domestic and external arrears limiting borrowing options. The government’s 2025 budget aims to boost tax revenues while increasing capital spending.
On the external front, Antigua and Barbuda’s current account deficit narrowed to 7% of GDP in 2024, supported by higher tourism earnings and reduced imports. Foreign direct investment (FDI) remains strong, particularly in the hotel sector, despite global financial tightening. Credit growth is also recovering, with nonperforming loans remaining under control.
The IMF’s latest review highlights both opportunities and risks ahead. While continued tourism demand, better air connectivity, and new cruise facilities could drive further growth, the country remains vulnerable to global economic shifts, climate-related risks, and construction sector constraints. Addressing outstanding arrears and strengthening fiscal management will be crucial to ensuring long-term economic stability.
Reforms to improve tax collection, enhance social assistance programs, and modernize financial regulations are underway. Authorities are also working to strengthen oversight of state-owned enterprises and improve the business environment to boost productivity and attract further investment.
With ongoing fiscal reforms and a focus on economic resilience, Antigua and Barbuda is positioning itself for sustained growth, but further efforts will be needed to maintain momentum and ensure financial stability in the years ahead.
