IMF Report Projects Slower Growth for Antigua and Barbuda in 2025

IMF Report Projects Slower Growth for Antigua and Barbuda in 2025

St. John’s, Antigua – The latest economic report, released yesterday by the International Monetary Fund (IMF), indicates that Antigua and Barbuda’s economy is set to experience slower growth in 2025. The IMF forecasts a 3.5% growth rate for the nation, a reduction from the 5.8% projected for 2024.

This projected slowdown places Antigua and Barbuda behind several of its Caribbean peers. According to the IMF’s October 2024 Regional Economic Outlook for the Western Hemisphere, growth projections for other Eastern Caribbean nations show higher anticipated rates. St. Kitts and Nevis leads with an expected 4.3% growth, followed by Dominica at 4.2%, St. Vincent and the Grenadines at 4.0%, and Grenada at 3.9%. Guyana, with its expanding oil sector, is projected to grow by an impressive 14.4%, far outpacing other Caribbean economies.

The IMF report attributes the deceleration in Antigua and Barbuda to a cooling of the post-pandemic tourism boom that had previously boosted regional growth. Despite this, steady remittance inflows and stable domestic consumption continue to support Antigua and Barbuda’s economy. Additionally, inflation is anticipated to ease, gradually dropping from 8.9% in 2023 to about 6.1% by 2025 as food and energy prices stabilize.

Economic risks, however, remain. Antigua and Barbuda, along with other Caribbean countries, could face potential disruptions from global commodity volatility, tightening fiscal conditions, and climate-related events. The IMF has emphasized the importance of “growth-friendly fiscal consolidation” to strengthen public finances and to maintain essential investments in infrastructure and social programs.

Policy reforms that improve the business environment, labor market flexibility, and public investment are crucial for sustaining long-term growth, according to the IMF. Local stakeholders in Antigua and Barbuda are now looking at implementing these recommendations to ensure that the economy remains resilient, appealing to tourists, and capable of creating sustainable job opportunities.

As the region moves forward, maintaining a competitive edge and adapting to economic shifts will be key for Antigua and Barbuda in navigating 2025 and beyond.

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