Antigua and Barbuda’s economy grew in2018, driven by activity in the tourism and construction sectors. Moderate inflation and improved labour market conditions also contributed to macroeconomic stability. Domestic demand was constrained by a deteriorating fiscal position. The fiscal deficit widened against a backdrop of high public debt and increasing gross financing needs.
Building macroeconomic resilience remains a significant challenge. The Caribbean Development Bank (CDB) projects moderate economic growth in 2019, with key downside risks in the short term. Anguilla’s vulnerability to global economic shocks and adverse weather conditions poses significant risk to medium-term prospects. As a result, the authorities are encouraged to build resilience planning into their budget and economic development initiatives.