Antigua and Barbuda: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Antigua and Barbuda

The 2026 Article IV Consultation discusses that Antigua and Barbuda’s economic expansion continues. This paper examines recent macroeconomic developments and medium-term policy priorities in an economy experiencing moderate growth and fiscal pressures. Real GDP growth reached an estimated 3 percent in 2025, driven primarily by stronger construction activity despite weaker tourism performance. Growth is projected to moderate slightly to 2.8 percent in 2026 and stabilize around 2.5 percent over the medium term, while inflation is expected to return to 2 percent by end-2026. Although public debt is projected to decline gradually in line with regional debt targets, unresolved arrears and elevated gross financing needs remain significant challenges. The analysis highlights the importance of restoring debt sustainability through improved cash and debt management and a comprehensive arrears-clearance strategy. Strengthening financial sector oversight, enhancing financial intermediation, and improving connectivity and competitiveness are identified as key priorities for resilience and inclusive growth. The study also emphasizes productivity-enhancing reforms and employer-aligned skills development programs to support sustainable long-term economic performance.