Financial Crime Takes Toll on Antigua and Barbuda’s Economy

Economic Stability Under Threat

Antigua and Barbuda, an island nation in the Caribbean, is facing significant economic challenges due to financial crime. Despite a growth in tourism and construction sectors last year, the economy remains fragile.

Fiscal Deficit Widen in 2018

According to data from the Caribbean Development Bank (CDB), the fiscal deficit widened significantly in 2018 due to high public debt and increasing gross financing needs. This has put a strain on domestic demand, with many local businesses struggling to access credit and finance.

Key Factors Contributing to Economic Instability

• High public debt
• Increasing gross financing needs
• Strained domestic demand

Recommendations from the CDB

The authorities have been advised by the CDB to build resilience planning into their budget and economic development initiatives in order to mitigate the risks posed by financial crime and other external shocks.

Key Recommendations

• Build resilience planning into budget and economic development initiatives
• Address risks associated with financial crime and external shocks
• Invest in measures to increase economic stability and prosperity

Tourism Sector Vulnerability

The tourism sector, a major driver of the economy, is vulnerable to global economic downturns and adverse weather conditions. This highlights the need for greater investment in resilience-building measures.

Key Risks Facing the Tourism Sector

• Global economic downturns
• Adverse weather conditions

Moderate Economic Growth Projected

In 2019, the CDB projects moderate economic growth for Antigua and Barbuda. However, warns that key downside risks in the short term could have a significant impact on medium-term prospects.

Key Risks Facing the Economy

• External shocks
• Financial crime
• Adverse weather conditions