43 / 173
2018 Annual Economic and Financial Review ANTIGUA AND BARBUDA
______________________________________________________________________________
33
Eastern Caribbean Central Bank
Commercial banking indicators reflected the
buoyancy in the economy as increases were
recorded in net foreign assets, monetary
liabilities and domestic credit.
The pace of economic activity in Antigua
and Barbuda is expected to be sustained in
2019.
The growth momentum observed in the
two broad sectors of construction and hotels
and restaurants is projected to continue based
on the number of public and private sector
projects currently in the pipeline, and
enhancements to the hotel room stock and
greater marketing efforts, respectively.
Inflationary pressures is likely to remain
subdued, in line with the expected moderation
in global economic activity as well as possible
stabilisation of oil prices at a lower level. The
fiscal situation is anticipated to improve
marginally based on the 2019 National Budget
Estimates of Revenue and Expenditure for a
reduced overall deficit, relative to 2018
preliminary data.
There are a number of primary risks to this
growth outlook.
Among the downside risks
are: any unforeseen slowdown in the growth
rates of its main trading partners such as
United States of America (USA), the United
Kingdom (UK) and the Euro Area due to trade
protectionism
policies,
heightened
geopolitical tensions, and Brexit uncertainty.
The likely impact of adverse weather, and
delays in project implementation due to
financing and capacity constraints represent
additional downside risks. On the upside,
additional hotel room stock and greater capital
investments could further add to the growth
momentum of the productive sectors.
Real Sector Developments
The Antigua and Barbuda economy
benefited from a favourable global
economic environment. This allowed for
greater investments in real estate projects
and the associated boost to the auxiliary
sectors.
Value added in the construction sector is
estimated to have expanded by 20.0 per cent
in 2018, slightly below the rate of growth of