The International Monetary Fund has urged Antigua and Barbuda to implement further fiscal reforms, warning that persistent arrears and elevated financing needs continue to threaten long-term debt sustainability despite recent economic progress.
According to Antigua News Room, the IMF's latest Article IV consultation, released this week, acknowledges notable gains in reducing public debt and improving the country's fiscal position. However, the fund cautioned that outstanding arrears owed to Paris Club creditors and domestic suppliers remain a significant concern.
"Persistent arrears and elevated gross financing needs are constraining access to longer-term financing and undermining debt sustainability," the IMF Executive Board stated. Directors urged the government to develop "a credible and comprehensive strategy" to address those arrears, expand financing options, and create space for resilience-building investments.
The IMF also recommended additional revenue mobilisation measures to rebuild fiscal buffers and support the government's broader fiscal objectives. Specific recommendations included broadening the tax base, reducing exemptions, restraining current expenditure, and improving the targeting of social assistance programmes.
Directors further encouraged authorities to strengthen fiscal institutions and improve oversight, transparency, and reporting across government finances and public enterprises.
The report noted that Antigua and Barbuda's fiscal position improved during 2024 and 2025, driven by stronger tax collection, higher Citizenship-by-Investment Programme inflows, spending restraint, and modest increases in capital expenditure. The IMF estimated the country's 2025 primary balance at nearly 5 percent of GDP.
Public debt has declined from 101 percent of GDP in 2020 to an estimated 68 percent in 2025, a reduction attributed largely to the improved fiscal position.
Despite these gains, the IMF warned that global uncertainty and longstanding debt vulnerabilities continue to pose downside risks to the economy. The fund also called for stronger cash and debt management practices to help prevent future arrears from accumulating.
