The International Monetary Fund has warned that skills shortages and domestic capacity constraints could weigh on Antigua and Barbuda's economic prospects, even as the country continues to record growth.
According to Antigua News Room, the IMF issued the caution in its latest Article IV consultation, stating that risks to the country's economic outlook remain tilted to the downside, citing both global uncertainty and local structural constraints.
Among the domestic concerns highlighted, labour and skills shortages featured prominently. The IMF said these gaps could hinder development if left unaddressed, and its directors encouraged authorities to tackle the shortages as part of broader efforts to strengthen competitiveness and support long-term economic expansion.
The Fund also called for reforms targeting improved productivity and enhanced connectivity to bolster trade and tourism. Specific recommendations included streamlining port and customs procedures and carefully prioritising infrastructure investment.
The warning comes as the country continues to expand. The IMF estimated real GDP growth at 3 percent in 2025, driven largely by construction activity, though tourism performance was noted as slower than expected.
On the labour front, employment has gradually recovered to pre-pandemic levels, while inflation eased sharply to 1.4 percent in 2025.
Despite the downside risks, the IMF indicated that stronger tourism demand, improved connectivity, and productivity-enhancing reforms could help bolster Antigua and Barbuda's growth trajectory going forward.
