Antigua and Barbuda are expected to realize a 3 percent growth in Gross Domestic Product in 2019. This was revealed by Caribbean Development Bank which is based in Barbados. The bank stated that there is a slowdown in the global economy which is likely to translate into increased travel in several parts of the world.
It is forecasted that the tourism sector is likely to experience a boom which will be a direct effect of economic prospects of major markets like Canada, the United States, and Europe. This buoyancy in the tourism sector will also be achieved from increased airlifts to Antigua and Barbuda as well as upgraded hotel stock.
To mitigate any fallout resulting from a reduction in travel demands, public and private sector related construction activities will be intensified. As stated by the CDB, part of the construction activities will include reconstruction of Barbuda, a continuation of the road rehabilitation project, and commencement of affordable housing estates.
Antigua and Barbuda experienced an economic boom in 2018 which can be tied to both the tourism and construction sectors. They also achieved macroeconomic stability as a result of better labor market conditions and mild inflation. A major challenge which is likely to result in moderate economic growth in 2019 is building macroeconomic resilience. This, however, poses certain downside risks in the short term.
In 2018, Antigua and Barbuda experienced a 3.5% growth, a major rise from 2.8% of 2017. The CDB has forecasted that this year it could increase by another 3% in 2019.