## IMF Staff Concludes Virtual Visit to Antigua and Barbuda

_IMF News, February 16, 2022_

## Source details

**Canonical URL:** [IMF Staff Concludes Virtual Visit to Antigua and Barbuda](https://www.imf.org/en/news/articles/2022/02/16/pr2242-imf-staff-concludes-virtual-visit-to-antigua-and-barbuda)

## Other formats

- [Markdown version](/en/news/articles/2022/02/16/pr2242-imf-staff-concludes-virtual-visit-to-antigua-and-barbuda/index.md)
- [Structured JSON version](/en/news/articles/2022/02/16/pr2242-imf-staff-concludes-virtual-visit-to-antigua-and-barbuda/index.json)
- [Bundle manifest](/en/news/articles/2022/02/16/pr2242-imf-staff-concludes-virtual-visit-to-antigua-and-barbuda/bundle-manifest.json)

## Bibliographic details
- Published: February 16, 2022

---

### Economic recovery and outlook
- Real GDP growth is estimated at 4.8 percent in 2021, following a sharp contraction of 20.2 percent in 2020.
- A sustained recovery in tourism and construction activity is expected to underpin real output growth of 7 percent in 2022.
- Two-thirds of the population have been fully vaccinated.
- Risks: a prolonged pandemic (e.g., due to the emergence of new virus variants) and supply chain disruptions could put a drag on the recovery at the same time as wage and price pressures build.

### Fiscal position and medium-term strategy
- The government’s objective: bring public debt-to-GDP to under 70 percent by 2030.
- Fiscal consolidation resumed in 2021; the primary deficit narrowed to 1.8 percent of GDP (from 3.8 percent in 2020) reflecting domestic revenue mobilization, external grants, and the reprioritization of spending.
- The 2022 budget envisages a zero primary balance, with an ambitious capital spending plan financed by higher revenues, grants and borrowing.
- Policy measures recommended and priorities highlighted:
  - Steadfast implementation of the government’s medium-term fiscal strategy.
  - Streamline tax exemptions.
  - Strengthen tax compliance.
  - Fully implement tax and customs administration reforms.
  - Assess the costs and benefits of the current energy pricing mechanisms given rising international oil prices.
  - Contain spending on wages and transfers.
  - Improve public financial management.
  - Prioritize clearing arrears to suppliers and creditors while avoiding the accumulation of new arrears.
- Note: The uncertain revenue outlook underscores the need for the measures above.

### Financial sector performance and supervision
- Financial sector performance has improved.
- Banks are well-capitalized and liquid, but credit growth has been slow, particularly to the household sector.
- Loans under moratoria at banks and credit unions have declined significantly in 2021 and nonperforming loan ratios have remained stable.
- Recommendations for supervisors:
  - Closely monitor asset quality as loan moratoria come to an end.
  - Ensure that loan loss provisioning is proportional to credit quality risks, especially at credit unions.

### Climate vulnerability, resilience, and diversification
- Antigua and Barbuda is highly susceptible to climate change and natural disasters.
- Structural challenges include high costs of reconstruction from Hurricane Irma and limited access to affordable home insurance against disasters.
- The National Adaptation Plan to build climate resilience is expected to be completed by year-end.
- Ongoing initiatives:
  - Make homes and public infrastructure more disaster-resilient.
  - Invest in renewable energy.
  - The Blue Economy Plan identifies new sustainable sectors and opportunities to diversify the economy; capacity building and financing will be necessary to realize the plan’s objectives.

### Mission and statement
- IMF team led by Mr. Varapat Chensavasdijai met virtually with the authorities during February 7–11, 2022.
- The mission will not result in a Board discussion.
- The views expressed are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

*IMF Communications Department — Press Release No. 22/42*

---


## References

- [Antigua and Barbuda and the IMF](http://www.imf.org/external/country/ATG/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2022/02/16/pr2242-imf-staff-concludes-virtual-visit-to-antigua-and-barbuda_