Economic Developments  2010

Antigua and Barbuda Budget Statement 2011: "A Disciplined Approach to Sustainable Growth – The Nest Plan Unfolds".
 During 2010 there was a 4.1 percent decline in real GDP in Antigua and Barbuda, compared to a 7.1 percent decline in 2009. This was the result of a 10.0 percent decline in construction; a 5.0 percent decline in Wholesale and Retail trade; a 4.0 percent decline in Government Services; a 3.5 percent decline in Hotels and Restaurants; and a 3.2 percent decline in Transportation in terms of their contributions to GDP. Notwithstanding the declines, there was growth in several sectors in terms of contribution to GDP. These include Agriculture with growth of 3.6 percent; Electricity and water, 2.3 percent; Communication, 2.0 percent; Real Estate and Housing, 1.0 percent, and Banks and Insurance, 1.0 percent.

The growth in these sectors indicates that the tides are beginning to turn, compared to the 2009 outturn. Additionally, the ongoing implementation of the National Economic and Social Transformation Plan, including the debt restructuring efforts, has positively impacted our creditworthiness. The NEST Plan has set the stage for growth going forward.

STRATEGY FOR 2010 TO 2014 – THE NEST PLAN
The NEST Plan is the strategic response of the government and people of Antigua and Barbuda
to the prevailing economic and developmental challenges that our country faces. The four
elements of the plan represent the areas of focus which need to be addressed if our twin-island
state is to transition into macro-economic stability and sustained, “people first” growth.
While the Fiscal Consolidation element of the Plan is to some degree calendar driven, that is,
scheduled to be substantially implemented between 2010 and 2013, the Economic Action Plan,
the Social Transformation Programme and Financial Sector Stability are elements which will
evolve and emerge, but from the basis of a strong and consolidated fiscal position.

ECONOMIC OUTLOOK 2011
In the Caribbean Region, growth in 2011 is projected to be 4.3 percent. However, within the Eastern Caribbean Currency Union, projected growth rates for 2011 range from 0.5 percent to 3.1 percent with Antigua and Barbuda's growth projected to be 3.1 percent. This forecast for Antigua and Barbuda is due to the sound macroeconomic policies that are being pursued by the Government.

SOCIAL AND ECONOMIC COOPERATION WITH THE REPUBLIC OF CUBA
According to the 2011 budget statement, Antigua and Barbuda has a shared heritage with the Republic of Cuba dating back to the 20th Century when there was a sizable migration of Antiguans and Barbudans to that country, mainly to work in the sugar industry. Over the years, the ties between Antigua and Barbuda and Cuba have grown stronger as we have discovered and nurtured our mutual interests. Our shared values in respect of health, education and sports, form a natural basis for engagement.

In the area of health, Cuba continues to provide healthcare professionals to staff our Mount St. John Medical Centre, as well as our clinics. Our interests in health and education coincide in the form of the many opportunities afforded young Antiguans and Barbudans to pursue medical training. Medicine, however, is only one of a wide range of disciplines in which students are qualifying. Other fields include physical education, economics, accounting and architecture. In fact, Madam Speaker, a number of our school coaches have been trained there, and we have benefitted from the presence of a number of highly qualified coaching personnel that the government of Cuba has made available to us on a continual basis.

REGIONAL INTEGRATION
The regional integration movement has been confronted with many challenges throughout the
year; nonetheless the goals and objectives of the integration process must be realized. Antigua
and Barbuda remains committed to this process, since our development cannot be sustained
within a vacuum. This Administration views the integration process as the best option for the
region to effectively respond to the growing global changes that have affected our economies.
However, as a less developed country in this integration process, Antigua and Barbuda must
ensure that the benefits of the entire regional integration movement are transferred to its
citizenry.

The OECS Economic Union will deepen integration among the economies. To support this
effort, a Unit will be created in the Office of the Prime Minister to lead the charge in
disseminating information to stakeholders on the benefits and changes that will occur when the
new OECS Treaty passes into domestic law in 2011.

The Ministry of Works has also benefited from the contribution of Cuban engineers and other
professionals skilled in different aspects of road construction and rehabilitation. With respect to
energy there is continuing collaboration between us on the matter of identifying and developing
more cost effective distribution systems for electricity. In terms of future areas of collaboration,
a team from Cuba will come to assess Antigua and Barbuda’s agricultural development needs.
The team will recommend areas of assistance and cooperation between our two countries.

source: Government of Antigua and Barbuda 2011 Budget Statement

Economic Outlook 2008

Antigua and Barbuda Budget Statement 2009

Preliminary data indicate that the economy of Antigua and Barbuda is expected to experience broad based economic growth in 2008 fuelled primarily by developments in construction and tourism. Notwithstanding the collapse of a number of major financial markets in 2008 and the resulting negative impact on the real sector in a number of advance and emerging economies output in Antigua and Barbuda is projected to grow by 4.2 percent in 2008.

With respect to real sector developments in 2008, activity in the construction sector remained robust with output expanding by 5.5 percent following annual average growth of 15.8 percent between 2004 and 2007. Activity in this sector was driven by developments in both the public and private sectors. Public sector activity focused on the expansion of the airport runway,infrastructural development and the Sunshine Community Hub. In the private sector, activity
centered on constructing and expanding a number of office complexes, housing and condominium developments. Growth in the construction sector was also supported by an increase in the number of residential properties under construction. The expansion in overall construction activity in 2008 continued to be reflected in the growth in commercial bank credit toconstruction companies and to households for home construction and renovation.

Tourism

Tourism activity, as measured by the change in value-added in the hotels and restaurants sector,is projected to increase by 4.0 percent in 2008 following growth of 4.9 per cent in 2007,reflecting an increase in the number of stay-over visitors. Growth in stay-over arrivals is expected from Canada (35.1 percent), the USA (10.5 percent), Italy (16.51 percent), Germany (11.8 percent) and the Caribbean (8.1 percent). These increases will be partly offset by declines in arrivals from the UK and some European destinations.
source: Government of Antigua and Barbuda 2009 Budget Statement

Economic Survey of the Caribbean 2007-2008

The survey provides an overview of the economic performance of countries of the Caribbean Development and Cooperation Committee (CDCC) for the year 2007 and their outlook for 2008. The last chapter presents country briefs with the main macroeconomic developments in 2007 and the outlook for 2008.

Economic Outlook 2007

In the last few years the nation of Antigua & Barbuda has enjoyed economic growth. The main drivers of the economy in 2006 were the tourism and construction sectors. Public and private development associated with the 2007 Cricket World Cup (CWC) boosted construction work on the islands. Public work included the construction of the Sir Vivian Richards’ stadium, housing developments as well as infrastructural developments in Barbuda. Privately, hotels and other tourist accommodations were upgraded in anticipation of high visitor volumes for the 2007 CWC.

With the boost in the construction industry sparking economic growth, the Eastern Caribbean Central Bank reported a 2.1% inflation rate for the nation in 2006. Measures were taken by the government to keep this rate low. To avoid the inflationary pressure caused by an increase in oil prices, the government removed consumption tax on gas and diesel forfeiting over $18M in revenue. The government also removed the customs service tax on basic food items. Personal Income tax was reintroduced as well.

In an effort to pull the economy out from years of fiscal deficits the Antiguan government entered the Regional Government Securities Market (RGSM). The government issued treasury bills and bonds as well as RGSM’s first US dollar denominated security and raised over $150M. Proceeds were used to partly pay off high interest domestic debt. Resources gained from the issuance of these securities were also utilized for other programmes, like the Voluntary Separation and Early Retirement programme (VSEP) which served to alleviate the problem of a large civil service. In spite of the government’s efforts, the deficit prolongs since government revenue was lost through the reduction of consumption and customs service tax and government expenditure increased with the implementation of VSEP and capital expenditure on the CWC developments. The trade deficit is also projected to widen with the increase in import payment and rising oil prices. The IMF warns that the planned increase in wage and investment spending that was reported in the 2007 budget will impede the movement towards financial sustainability.
IMF Article IV consultation with Antigua and Barbuda
2007 Budget Address for Antigua
ECCB. Economic and Financial Review

Impact of Tax Policy - Revenue Performance

 Ministry of Finance and the Economy. 27 September 2007

The presentation outlines objectives of Fiscal Reform, Tax Policy Initiatives and Revenue Profiles for Antigua and Barbuda.

Antigua and Barbuda Investment Authority

An Address of The Executive Director to the  National Economic Symposium  JULY 16, 2008: "Facilitating Investment in Antigua and Barbuda"