Inflation in Antigua and Barbuda fell sharply last year as the nation's economy continued to expand, according to Antigua News Room, citing the International Monetary Fund's latest assessment of the twin-island state.
The IMF reported that average inflation dropped from more than 6 percent in 2024 to 1.4 percent in 2025. Economic growth remained positive during the same period, despite a slowdown in tourism activity.
Real GDP growth was estimated at 3 percent in 2025, driven largely by increased construction activity, the IMF report stated. Employment also gradually recovered to pre-pandemic levels as the broader economic expansion continued.
The Fund highlighted stronger fiscal performance over the past two years, crediting improved tax collection, higher inflows from the Citizenship-by-Investment Programme, and restraint in current spending.
Public debt continued its downward trajectory, falling from 101 percent of GDP in 2020 to an estimated 68 percent in 2025 — a significant reduction reflecting sustained fiscal discipline.
Despite the encouraging figures, the IMF cautioned that risks to the economy remain tilted to the downside. Global uncertainty, commodity price volatility, and potential slowdowns among major trading partners were cited as key concerns.
On a more optimistic note, the IMF identified upside potential from stronger tourism demand, improved connectivity, and productivity-enhancing reforms.
