Annual Economic and Financial Review -December 2018

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Eastern Caribbean Central Bank

A N T I G U A A N D B A R B U D A

Overview

Favourable global economic conditions and

a disaster free year contributed to a thriving

environment for both the tradeable and

non-tradeable sectors in Antigua and

Barbuda.

Preliminary real GDP estimates

indicated that the economy expanded at an

accelerated rate of 6.

in 2018, relative to an

expansion of 3.0 per cent in 2017.

This was

the strongest rate of growth since 2007.

This

accelerated pace of economic activity was

primarily driven by robust performance in the

. In keeping with international standards, the ECCB updated the terminology used to describe economic activity in the

ECCU. Accordingly, the Bank now reports real change in the economy using real Gross Domestic Product (GDP) at

market prices and not Gross Value Added (GVA) at basic prices as used in previous reports of the Annual Economic and

Financial Review (AEFR). However, GVA will remain applicable for output by sector.

construction; wholesale and retail trade; real

estate, renting and business activities; hotels

and restaurants; and transport, storage and

communications sectors. Notably, every

broad sector of the economy recorded positive

growth. Fuelled primarily by higher food

prices, the consumer price index rose by

1.5 per cent, on an end of period basis.

Provisional fiscal data indicated a widening of

the overall fiscal deficit on account of a

substantial increase in current expenditure

which surpassed the gains in current revenue.

Consequently, the total disbursed outstanding

debt of the public sector rose in 2018.