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.
17 Dec 2024
28 Jan 2025
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