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Economic Situation of Antigua and Barbuda

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Economic Indicators

The economic situation of Antigua and Barbuda has been affected by various factors, including energy importation, inflation rates, and fiscal deficit. Here are some key points to consider:

Estimated Cost of Program

  • The estimated cost of the program is 0.1 percent of GDP for 2022.

Stayover Arrivals by Country of Origin

  • Stayover arrivals in Antigua and Barbuda have recovered to about 30% of their pre-pandemic levels.
  • The US is the largest source country, followed by Canada and the UK.
  • Hotel occupancy rates have also recovered to around 49.7% of available room nights.

Inflation

Inflation has been a significant concern for Antigua and Barbuda in recent years.

Food & Non-Alcoholic Beverages

  • The contribution of food and non-alcoholic beverages to headline inflation has been increasing, reaching -4% in 2022.
  • This increase is largely due to higher prices of imported goods.

Headline Inflation

  • Headline inflation has been declining, reaching around -80% in 2022.
  • This decline is a result of efforts to control prices and stabilize the economy.

Core Inflation

  • Core inflation has also been decreasing, with a contribution of around -40% in 2022.
  • This decrease indicates that underlying price pressures are easing.

Fiscal Deficit

The fiscal deficit of Antigua and Barbuda has been narrowing in recent years due to improved tax administration and reduced pandemic-related spending.

Primary Deficit

  • The primary deficit narrowed by 2 percent of GDP in 2021.
  • This reduction is a result of better tax collection and reduced government spending.

External Grants

  • External grants have bolstered revenues, contributing to the decline in the fiscal deficit.
  • These grants have helped to stabilize the economy and improve living standards.

Energy Prices

Energy prices have been a significant concern for Antigua and Barbuda due to high import costs.

Fuel Price Pass-Through Mechanism

  • The country has a fuel price pass-through mechanism that was recently updated to reflect international market prices.
  • This mechanism ensures that domestic fuel prices are aligned with global prices, reducing the impact of price volatility on the economy.

Retail Gasoline Prices

  • Retail gasoline prices were increased by 24% and now broadly reflect international market prices.
  • This increase aims to stabilize the domestic fuel market and reduce the burden on consumers.