Antigua and Barbuda's economy continued to expand in 2025, supported by stronger construction activity, easing inflation and a sustained decline in public debt, according to the International Monetary Fund. However, as reported by Antigua News Room, the IMF cautioned that arrears and financing pressures remain significant challenges for the twin-island nation.
In its latest Article IV consultation, the IMF estimated real GDP growth at 3% for 2025. A rebound in construction activity was the primary driver, offsetting a slowdown in the tourism sector. Employment levels have also returned to pre-pandemic levels, the Fund noted.
Inflation fell sharply, dropping from an average of over 6% in 2024 to 1.4% in 2025, reflecting stabilising price pressures across the economy.
Public debt continued its downward trajectory, declining from 101% of GDP in 2020 to an estimated 68% in 2025. The IMF attributed this improvement to stronger fiscal performance and higher revenues, including inflows from the Citizenship by Investment programme.
Despite these gains, the Fund highlighted significant arrears owed to Paris Club creditors and domestic suppliers, alongside elevated financing needs that continue to weigh on long-term debt sustainability.
The IMF's Executive Directors called for a "credible and comprehensive strategy" to clear arrears, strengthen debt and cash management, and create fiscal space for climate resilience and infrastructure investment.
Directors also acknowledged improvements in tax collection and fiscal discipline, with the primary balance estimated at nearly 5% of GDP in 2025. They nevertheless urged authorities to broaden the tax base, reduce exemptions and improve oversight of public finances and state-owned enterprises.
The financial system was described as stable and liquid, while further reforms were encouraged to improve tourism competitiveness, strengthen trade links and develop workforce skills.
The IMF projects continued steady growth in the years ahead, but warned that global uncertainty, commodity price volatility and external shocks remain key risks for the small island economy.
