IMF Executive Board Concludes 2007 Article IV Consultation with Antigua and Barbuda.

Macroeconomic outcomes have strengthened significantly in recent years. Real GDP growth averaged 5 percent during 2003-05, and is estimated to have reached 12 percent in 2006. Economic activity was sustained by construction—mainly in hotels, but also public investment related to the Cricket World Cup (CWC). In 2007, growth is expected to moderate to about 6 percent, as construction activity slows. The external current account deficit widened in recent years due to surging world oil prices and construction-related imports. Money and credit growth have strengthened in recent years, reflecting strong economic activity. While recent growth outcomes have been favorable, Antigua and Barbuda remains vulnerable to exogenous shocks, given its dependence on imported oil, volatile tourism receipts, and exposure to natural disasters. High debt levels also leave it vulnerable to a tightening of regional and international financing conditions.