Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review ANTIGUA AND BARBUDA

Outlook

equipment; and miscellaneous manufactured articles were the main drivers of the escalation in imports. Meanwhile, export receipts fell by a minuscule 1.0 per cent ($0.6m) to $55.7m. Gross travel receipts are estimated to have increased by 7.6 cent ($114.4m) to $1,616.9m, consistent with growth in total visitor arrivals. Commercial banks’ transactions resulted in a net outflow in short- term capital of $176.3m, lower than the amount of $394.9m recorded in the 2017. This outturn primarily represented a fall in the asset position with banks outside the ECCU region. External loan disbursements to the central government amounted to $183.4m, lower than the amount of $200.9m disbursed in 2017. Loans were disbursed from the Caribbean Development Bank and the EXIM Bank of China. External principal payments fell by 12.8 per cent to $187.7m as the government continued to service its debt obligations with external creditors, and in particular, cleared its outstanding balance with the International Monetary Fund (IMF). These developments contributed to a net outflow position of $4.3m.

Economic activity in the Antigua and Barbuda economy is expected to remain robust in 2019, contingent on a stable global economy. Robust activity in the tourism industry and the construction sector will continue to drive growth. The stay-over market segment will continue to benefit from additional airlift from major US airports in cities such as New York, Miami and North Carolina. Furthermore, a cabinet decision to increase the marketing budget of the Antigua and Barbuda Tourism Authority will allow for greater marketing and destination branding aimed at beefing up arrivals in the summer months. It is expected that the hotel room stock will be augmented with the opening of the Royalton Hotel and the Hammock Cove Resort and Spa during the year. In the cruise sector, the construction of a 5 th pier to accommodate Oasis Class ships, and efforts to enhance the visitor experience through the passage of a Tourism Licensing and Classification Bill 2019 is likely to support a further growth in cruise tourism. Construction activity will continue to be buoyed by projects in both the private and public sectors such as the Road Rehabilitation and Expansion Project, the Port

______________________________________________________________________________ 42 Eastern Caribbean Central Bank