Economical overview
Tourism is the main industry in Antigua and
Barbuda. A significant portion of the state's income
comes from the sale of citizenship.
Agricultural production is limited by drought and
soil degradation. Since sugar cultivation was
discontinued in the 1970s, large agricultural areas have
been in decline.
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Countryaah.com:
Major imports by Antigua and Barbuda, covering a full list of top products imported by the country and trade value for each product category.
Nearly all land in the countryside is owned by the
state, which instead builds hotels and residential
buildings. Vegetables and fruits are grown for domestic
consumption. Cattle, pigs, sheep, goats and chickens are
raised for their own livelihood. A large part of the
food is imported. The seafood industry has increased in
importance in recent years.
The industrial sector is small and is dominated by
construction companies. In addition to building
materials, for example, beverages and clothing are
produced. Some industries put together imported
components for, among other things, household appliances
for export.
Revenue from tourism is Antigua and Barbuda's largest
source of foreign currency. The industry contributes
over half the gross domestic product (GDP) and an almost
equal share of the labor force is estimated to be
directly or indirectly employed in the tourism industry.
Various governments have tried to reduce the
dependency of the tourism sector by developing other
industries. A free trade zone has been established for
foreign industrial companies and the country has also
managed to attract some banks and finance companies that
have established themselves on favorable terms. Antigua
and Barbuda sell citizenship to foreigners in exchange
for investment. In 2015, passport sales accounted for
about a quarter of the state's revenue.
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Growing growth
During the period 2000–2008, economic development was
on the whole quite good, but the global financial crisis
of 2008 hit hard on the tourism industry and thus also
on the construction sector. The financial contributions
of antiguan working abroad diminished and the effects of
Texas billionaire Allen Stanford's corporate collapse
(see Modern History) hit the economy hard. In 2009,
gross domestic product (GDP) shrank by 12 percent and
was again at plus first in 2012.
In the summer of 2010, Antigua and Barbuda were
granted an emergency loan by the International Monetary
Fund International Monetary Fund (IMF) of US $ 117.8
million. The condition for the loan was that the state
would reduce its expenses and take measures to raise tax
revenue.
Growth was back to minus in 2013, but in the next
three years economic development was good, mainly due to
a number of infrastructure projects, such as a new
airport terminal, giving the construction industry a
boost. Better economy in the US and the UK, from where
many tourists come, also contributed to the upturn.
In 2016, the government abolished the income tax with
the aim of increasing domestic consumption and
investment. The IMF was critical of the decision, which
the Fund considered weakened the state's income
opportunities.
Government debt reached its highest level ever in
2003, 128 percent of GDP, but then declined. In the
fall of 2010, Antigua and Barbuda managed to renegotiate
the terms for parts of their foreign debt, thereby
further reducing the debt. However, the lending
institutions still express some concern that the central
government debt is too high.
Foreign trade and energy
Antigua and Barbuda are drawn with large deficits in
trade abroad. The deficit is covered by a portion of
tourist income and money that antiguanas abroad send
home. Exports mainly consist of textiles, electrical
appliances and electronic components, while imports are
mainly fuel and food. The largest exporting country is
the United Kingdom, while a large part of the imports
are purchased from the USA.
The countries of the regional cooperation
organization Caricom have signed European Partnership
Agreement (EPA) with the EU. This means that the
Caribbean countries do not have to impose duties and
other restrictions on virtually all exports to the EU
countries. In return, the Caribbean countries will
gradually phase out tariffs on 87 percent of EU imports
by 2033.
Antigua and Barbuda are highly dependent on imported
fossil fuels for their energy supply, and through the
regional cooperation Petrocaribe initiative enjoy
favorable conditions when purchasing Venezuelan oil
products.
According to a law from 2015, the country aims to
increase the use of renewable energy from wind, solar
and geothermal heat. Electricity supply is inadequate
and power outages are not uncommon.
FACTS - FINANCE
GDP per person
US $ 16,864 (2018)
Total GDP
US $ 1,624 million (2018)
GDP growth
4.9 percent (2018)
Agriculture's share of GDP
1.7 percent (2018)
Manufacturing industry's share of GDP
2.4 percent (2018)
The service sector's share of GDP
68.0 percent (2018)
Inflation
1.6 percent (2019)
Government debt's share of GDP
89.5 percent (2018)
Currency
eastern Caribbean dollar
Merchandise exports
US $ 208 million (2017)
Imports
US $ 554 million (2017)
Current account
US $ 34 million (2017)
Commodity trade's share of GDP
36 percent (2018)
Main export goods
textiles, electrical appliances, electronic
components, vehicles and transport equipment (2015)
Largest trading partner
USA, China, Japan, UK
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