Economy of Antigua and Barbuda

The economy of Antigua and Barbuda is service-based, with tourism and government services representing the key sources of employment and income. Tourism accounts directly or indirectly for more than half of GDP and is also the principal earner of foreign exchange. The government's efforts to comply with international standards have bolstered confidence in the burgeoning offshore financial sector. Agricultural production is primarily directed towards the domestic market, with manufacturing mainly involving enclave-type assembly for export. Major products include bedding, handicrafts, and electronic components. Prospects for economic growth in the medium term will continue to depend on income growth in the industrialized world, particularly in the US, which accounts for about one-third of all tourist arrivals. Estimated overall economic growth was 2.5%, with inflation trending down from above 2 percent to an estimated 0 percent.

Top Sectors in Antigua and Barbuda

Agriculture in Antigua and Barbuda

Some 30% of land on Antigua is under crops or potentially arable, with 18% currently in use. Sea-island cotton is a profitable export crop. A modest amount of sugar is harvested each year, and there are plans for the production of ethanol from sugarcane. Vegetables such as beans, carrots, cabbage, cucumbers, plantains, squash, tomatoes, and yams are grown mostly on small family plots for local markets. Over the past few decades, agriculture's contribution to the GDP has fallen from over 40% to 12%. The decline in the sugar industry left 60% of the country's 66,000 acres under government control, and the Ministry of Agriculture is encouraging self-sufficiency in certain foods to reduce the need for food imports, which account for about 25% by value of all imports. Crops face challenges from droughts and insect pests, while cotton and sugar plantings are affected by soil depletion and a lack of willingness among the population to work in the fields. Mango production reached 1,430 tons.

Tourism in Antigua and Barbuda

Tourism is the mainstay of the economy of Antigua and Barbuda, providing significant employment and foreign exchange. It contributes 60 percent of GDP and more than half of all jobs. According to the Americas Review, tourism contributes 15 percent directly and around 40 percent indirectly to the GDP. Real growth in this sector has averaged around 7 to 8 percent over various periods. Figures from the East Caribbean Central Bank (ECCB) show that total visitor arrivals have increased steadily, with a notable number of visitors staying at least one night. Most tourists come from the United Kingdom and the United States. Visitor expenditures have also increased steadily, with total expenditures reaching EC$782.9 million.

Mining in Antigua and Barbuda

Few of the islands' mineral resources, including limestone, building stone, clay, and barite, were exploited until recently. Limestone and volcanic stone have been extracted from Antigua for local construction purposes, and the manufacture of bricks and tiles from local clay has begun on a small scale. Barbuda produced a small amount of salt, while phosphate has been collected from Redonda.

Antigua and Barbuda - Key Economic Indicators

Exports and Imports

Imports: The region is heavily reliant on imports for most of its consumer goods, food, and energy needs. Major import categories include machinery, vehicles, foodstuffs, and petroleum products. The total import value is estimated to be around $1.3 billion annually.

Infrastructure

Roads and Bridges: The country has approximately 1,170 km of roads, with about 400 km paved and the remaining 770 km unpaved. Several ongoing projects aim to improve road quality and connectivity.
Airports and Ports: V.C. Bird International Airport handles over 860,000 passengers annually, while St. John's Port manages most of the maritime cargo and sees approximately 500,000 cruise ship passengers each year.

Balance of Trade

Antigua and Barbuda has a significant trade deficit, with imports surpassing exports by around $322 million in 2020. This trade imbalance is typical for small island economies heavily reliant on imported goods.

Fiscal Policy

Government Spending: The government's budget for 2023 was around $1.2 billion, with significant allocations for public services, infrastructure, education, and healthcare.
Taxation: Tax revenue is generated through various taxes, with the value-added tax (VAT) contributing about 35% of total revenue, income tax about 25%, corporate tax 20%, and customs duties 15%.

Monetary Policy

Central Bank Actions: The Eastern Caribbean Central Bank (ECCB) maintains an inflation rate of around 1.5% and manages currency stability. The Eastern Caribbean dollar (XCD) is pegged to the US dollar at a fixed rate of 2.70 XCD to 1 USD.
Interest Rates and Currency: The ECCB sets benchmark interest rates, currently at 6.5%, to influence economic activity and ensure financial stability.

Trade Agreements

with which the EU has trade deals. This integration allows French Guiana to benefit from the same trade terms as mainland France, providing access to a wide range of markets without the need for separate agreements like NAFTA.

Environmental Regulations

Sustainable Development: The government commits about 5% of its budget to sustainable development and environmental protection, focusing on preserving natural resources and mitigating climate change impacts.
Regulatory Framework: Environmental regulations are strictly enforced, with renewable energy sources contributing about 12% of the total energy mix, and waste management policies reducing pollution levels by 15% annually.

Tax System in Antigua and Barbuda

Capital Gains Tax
Existence: Antigua and Barbuda does not impose a specific capital gains tax on profits from investments, including sales of stocks, bonds, or real estate. However, certain gains may be subject to other forms of taxation.
Tax Treatment: While capital gains are generally not taxed, individuals and businesses should consult with tax authorities or financial advisors for specific guidance on any taxable gains.
Corporate Tax Rate
Rate: The corporate tax rate in Antigua and Barbuda is 25% on business profits. This rate applies to both domestic and foreign corporations operating within the country.
Tax Credits and Incentives: Some tax credits and incentives may be available to eligible businesses, encouraging investment, job creation, and economic development.
Sales Tax
Existence: Antigua and Barbuda imposes a Value-Added Tax (VAT) on goods and services provided within the country.
Rate: The standard VAT rate is 15%, applied to the final consumer at each stage of the supply chain.
Exemptions: Certain goods and services may be exempt from VAT, such as basic food items, medical supplies, and financial services.
Property Tax
Existence: Property tax is levied on real estate properties, including land, buildings, and other structures.
Rate: The property tax rate varies depending on the assessed value of the property and local government regulations.
Collection: Property taxes are typically collected by local authorities and may vary across different jurisdictions within Antigua and Barbuda.
Payroll Tax
Existence: Antigua and Barbuda imposes a payroll tax on wages and salaries to fund social security programs and other government initiatives.
Rate: The payroll tax rate varies based on income levels and may be subject to periodic adjustments by the government.
Administration: Employers are responsible for deducting payroll taxes from employees' salaries and remitting them to the relevant government agencies.
Tax Deductions and Credits
Incentives: The government may offer tax deductions and credits to individuals and businesses to stimulate economic growth, encourage investment in certain sectors, and support specific activities.
Examples: Deductions and credits may include allowances for business expenses, investment incentives, research and development credits, and deductions for charitable contributions.
Tax Compliance
Efficiency: Tax compliance and collection mechanisms are overseen by the Inland Revenue Department of Antigua and Barbuda, aiming to ensure fair and effective tax administration.
Enforcement: The government implements measures to enforce tax laws, promote voluntary compliance, and deter tax evasion and avoidance.
Tax Burden
Overall Impact: The tax burden on individuals and businesses in Antigua and Barbuda is influenced by various factors, including income levels, business activities, and government policies.
Analysis: Assessing the overall tax burden involves considering the combined impact of income taxes, corporate taxes, VAT, property taxes, and other levies on economic agents.

Similar tenders from other countries.

Showing 1 to 20

Renovation And Repair Of Phu Ninh District Social Insurance Office

Vietnam

20 Nov 2024

29 Nov 2024