2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

ANTIGUA AND BARBUDA

depend largely on virus and vaccine developments.

Antigua & Barbuda Balance of Payments (EC$M)

1000.0 1300.0 1600.0 1900.0

 Notwithstanding baseline projection, the short-term outlook remains uncertain as recovery will be contingent on perceptions of the safety and efficacy of COVID-19 vaccines, the ability of countries to achieve broad immunity and the emergence of more virulent strains. in Antigua and Barbuda in the first quarter of 2021 may constrain economic activity in the first half of the year, especially in service-related sectors, such as the hotels and restaurants sector, which is more inclined to personal contact.  On the upside, effective inoculation programmes and the rollout of economic stimulus packages in the USA and other advanced economies may expedite global recovery and improve growth prospects in the latter half of 2021.  Risks are however tilted to the downside, as the emergence of more contagious strains may limit the efficacy of the vaccines, which may further delay the economic recovery. this  The resurgence of cases

100.0 400.0 700.0

(2000.0) (1700.0) (1400.0) (1100.0) (800.0) (500.0) (200.0)

2016

2017

2018

2019

2020

Exports of Goods

Imports of Goods

Current Balance

Net Lending/Net Borrowing

The capital balance registered a surplus of $76.5m, a decline of $52.7m from the balance in 2019. These developments resulted in a net borrowing position amounting to $217.9m (5.7 per cent of GDP), following one of $173.1m (3.9 per cent of GDP) in the prior year. Meanwhile, net inflows in the financial account expanded by 24.3 per cent to approximately $256.9m, partly driven by a reversal in portfolio investment. These transactions also resulted in a decline of $154.7m in imputed reserves, during the review period. unprecedented decline in economic activity in 2020, amild rebound is expected in 2021 amid the gradual easing of COVID-19 measures and the widespread deployment of vaccines. The speed of the recovery will Outlook Following the

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