The International Monetary Fund’s Executive Board has concluded its Article IV consultation with Antigua and Barbuda, finding that the economy continues to expand and inflation has eased, but warning that persistent arrears and high gross financing needs still weigh on debt sustainability. Real GDP is estimated to have grown by 3 percent in 2025, supported by construction despite slower tourism activity, while average inflation fell to 1.4 percent from more than 6 percent in 2024. Public debt declined to an estimated 68 percent of GDP in 2025 from 101 percent in 2020, but the IMF said further reforms are needed to restore debt sustainability and strengthen potential growth and climate resilience. Directors called for a credible and comprehensive strategy to address all arrears, broaden financing options and create room for resilience-building investment, alongside stronger cash and debt management to prevent new arrears. They also recommended further revenue mobilization through a broader tax base and fewer exemptions, restraint in current spending, better-targeted social assistance, and stronger fiscal institutions, oversight, transparency and reporting. The 2025 primary balance is estimated at nearly 5 percent of GDP, supported by higher tax revenue, stronger Citizenship-by-Investment Program inflows, spending restraint and slightly higher capital spending. The current account deficit is estimated at about 11.5 percent of GDP and was financed mainly by foreign direct investment and partly by Citizenship-by-Investment inflows. The financial system was assessed as stable and liquid, with the IMF urging risk-based supervision for credit unions, stronger provisioning and capital positions, continued work on AML/CFT and Citizenship-by-Investment frameworks, improved connectivity, streamlined port and customs procedures, careful infrastructure prioritisation, action on skills shortages and better data. Antigua and Barbuda’s authorities have consented to publication of the staff report, which the IMF said will be released shortly on the country page.
International Monetary Fund 2026-05-07
International Monetary Fund urges Antigua and Barbuda to address arrears and strengthen fiscal reforms in Article IV review
The IMF Executive Board concluded its Article IV consultation with Antigua and Barbuda, noting continued economic expansion, easing inflation and a projected decline in public debt to 68 percent of GDP in 2025, but warning that persistent arrears and high gross financing needs still weigh on debt sustainability. Directors called for a credible arrears strategy, stronger cash and debt management, broader tax bases with fewer exemptions, restrained current spending, better-targeted social assistance and stronger fiscal institutions, while assessing the financial system as stable and liquid and urging enhanced risk-based supervision, provisioning, capital positions and AML/CFT and Citizenship-by-Investment frameworks.