IMF Says Antigua and Barbuda’s Public Debt Reduced Significantly

Antigua and Barbuda has made notable progress in reducing its public debt, according to the latest International Monetary Fund (IMF) assessment. The IMF’s 2025 Article IV consultation highlighted a significant decline in nominal debt in 2024, marking a positive step toward fiscal sustainability.

Despite this progress, the IMF cautioned that outstanding arrears—particularly to domestic suppliers and the Paris Club—remain a challenge. These arrears continue to limit the country’s access to external financing and pose constraints on broader economic flexibility.

While economic activity has surpassed pre-pandemic levels, the IMF projects that growth will moderate from 3% in 2025 to 2.5% in the medium term. The report attributes this slowdown to the recovery reaching maturity after a strong tourism-led rebound. Inflation, which saw an increase in 2024 due to temporary factors, is expected to ease, offering some relief to businesses and consumers.

The IMF acknowledged the government’s efforts to improve revenue collection, noting that stronger fiscal management has contributed to the reduction in public debt. However, it recommended continued measures to enhance tax administration and streamline fiscal policies to ensure sustained progress.

The IMF identified several risks to Antigua and Barbuda’s economic outlook, including global economic uncertainty, climate-related vulnerabilities, and construction sector constraints. However, it also pointed to opportunities, such as increased tourism demand, improved air connectivity, new cruise port facilities, and structural reforms aimed at boosting productivity.

With public debt on a downward trajectory, the IMF stressed the importance of maintaining fiscal discipline while investing in long-term resilience. The report underscored the need for continued economic reforms to support sustainable growth and strengthen Antigua and Barbuda’s financial stability.

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