In a region where, months ago, some countries had been diagnosed with various stages of food insecurity, a visiting team from the International Monetary Fund has concluded, following a visit to Antigua and Barbuda, that the islands’ economic future looks bright and that ““economic activity is on a solid recovery path after a sharp decline during the (COVID 19) pandemic.”
The Fund’s assessment of the state of the twin island territory’s economy comes following a visit to the country by between June 19 and June 25th by a team from the Fund during which it met with government officials in St. John’s to discuss what, according to a release from the Fund, were “recent economic developments, economic outlook, and policy priorities.” The country’s growth for this year is projected by the Fund at 5.5 per cent. The Fund’s assessment of Antigua and Barbuda’s tourism sector, a key plank in its overall economic infrastructure points to what it says is significant growth, having arrived at 98 per cent of pre-pandemic levels during the first four months of 2023.
Back in March this year, a Caribbean Journal report had stated that the CARICOM member state was seeing “record-breaking tourism numbers,” that was leading to “significant demand for new routes to the destination from global airlines.” During the visit, the Fund reportedly described Antigua and Barbuda’s financial sector as being “in a good position… stable and liquid, with non-performing loans declining gradually.” The Fund reportedly concluded, however, that the positive outlook for the country, notwithstanding the country’s fiscal situation, “remains
challenging with elevated debt and high financing needs”.
The Fund is recommending that Antigua work with its external and domestic creditors to clear existing arrears and avoid the accumulation of new arrears. With Antigua, like the rest of the island territories being vulnerable to natural disasters, the visiting IMF team recommended that the country continue to seek to build resilience against natural disasters. The Fund also recommended that the country take measures to enhance the skills of its work force.
