Political Information

Source: Economic Intelligence Unit

Political and Economic Stability

Antigua and Barbuda is an independent state and a member of the Organization of Eastern Caribbean States (OECS). The OECS is an economic union of nine countries from the eastern Caribbean. OECS countries agreed to promote cooperation and assistance in the development of each nation after gaining independence from Great Britain (except Anguilla). The OECS shares a common supreme court and is governed by seven departments that cover all the nations: the Authority, the Council of Ministers, the Assembly, the Economic Affairs Council, the Commission, The Secretariat and the Institutions department.

Tourism continues to dominate Antigua and Barbuda’s economy, accounting for nearly 60% of GDP and 40% of investment. The dual-island nation’s agricultural production is focused on the domestic market and constrained by a limited water supply and a labor shortage stemming from the lure of higher wages in tourism and construction. Manufacturing comprises enclave-type assembly for export with major products being bedding, handicrafts, and electronic components. Prospects for economic growth in the medium term will continue to depend on tourist arrivals from the US, Canada, and Europe and potential damages from natural disasters. In 2009, Antigua’s economy was severely hit by the global economic crisis and suffered from the collapse of its largest private sector employer, a steep decline in tourism, a rise in debt, and a sharp economic contraction between 2009 and 2011.

Antigua and Barbuda is experiencing a moderate economic recovery, but fiscal performance has been weaker than expected. The economic recovery continues to be tepid, with real GDP growth estimated at 2.4 percent in 2014. A weakening of tourist arrivals in the fourth quarter continued in the first few months of 2015 and is expected to reduce growth to 2.1 percent in 2015. The growth outlook for Antigua and Barbuda is moderate. This outlook reflects, on the upside, the lower oil prices, the recovery in the US, and the opening of a new airport terminal. And, on the down side, the decline in tourist arrivals in the first quarter of 2015 (6.4 percent) has reduced the prospects for the sector.

Business Climate

The World Bank’s annual Doing Business report ranks economies from 1 to 189 (with 1 being the best) on their ease of doing business. In the 2016 report, Antigua and Barbuda ranked 104 overall and 114 for Trading Across Borders, which measures the ease with which a standardized shipment of goods can be imported or exported across its borders. In the 2014 report the average time to export goods in Antigua and Barbuda is 16 days, with a low average estimated cost of $CAD 2,636 per 20-foot container.

Antigua and Barbuda wasn’t assessed by Transparency International’s 2015 Corruption Perceptions Index. However, Canadian companies are advised to exercise strict due diligence before working with a company from Antigua and Barbuda to ensure that it is a bona fide and reputable entity. It is suggested that Canadian importers commission a report by a credit information provider to verify the financial strength of the partner.

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