International Monetary Fund says Antigua and Barbuda’s economy continued to grow in 2025, helped by strong construction activity and a steady tourism sector, even as the country faces ongoing debt and financing challenges.

In its latest Article IV consultation released on May 7, the IMF said the twin-island nation’s economy expanded by an estimated three per cent in 2025. 

The growth came despite a slowdown in tourism activity, with construction projects helping to drive the economy forward.

The report also noted that employment has returned to near pre-pandemic levels, while inflation slowed sharply from more than 6 percent in 2024 to 1.4 percent in 2025.

The IMF said Antigua and Barbuda’s public debt position has improved significantly in recent years, falling from 101 per cent of GDP in 2020 to an estimated 68 per cent in 2025.

It credited stronger tax collection, higher revenues from the Citizenship-by-Investment Programme (CIP), restraint in government spending and modest increases in capital investment for helping strengthen the country’s finances.

Still, the Fund warned that the country continues to face serious fiscal pressures, including outstanding arrears owed to Paris Club creditors and domestic suppliers.

“Persistent arrears and elevated gross financing needs are constraining access to longer-term financing and undermining debt sustainability,” the IMF Executive Board said.

The IMF urged the government to develop a comprehensive plan to address its arrears, improve financing options and create more room for investments in infrastructure and climate resilience.

The report said Antigua and Barbuda’s current account deficit widened again in 2025 to about 11.5 per cent of GDP after narrowing in 2024. 

That gap was largely financed through foreign direct investment and CIP-related inflows.

Looking ahead, the IMF expects the country’s economic expansion to continue, but warned that global uncertainty could pose risks to growth. Among the concerns highlighted were commodity price volatility, weaker growth among major trading partners and the impact of the ongoing conflict in the Middle East.

At the same time, the Fund said stronger tourism demand, better air connectivity and reforms aimed at improving productivity could help strengthen the country’s outlook.

The IMF also encouraged Antigua and Barbuda to continue reforms aimed at improving tax collection, reducing exemptions, strengthening oversight of public finances and improving social assistance programmes.

It further called for continued efforts to strengthen oversight of the financial sector, including credit unions, while improving anti-money laundering safeguards and oversight of the CIP programme.

The Fund also pointed to the need for better infrastructure, improved port and customs operations and measures to address labour shortages as part of efforts to boost long-term economic competitiveness.