IMF officials warned that skills shortages could slow Antigua and Barbuda’s economic growth. However, the economy continues to expand in 2025.

In its latest Article IV consultation, the International Monetary Fund highlighted several risks to the country’s outlook. Although growth remains steady, the IMF said local and global pressures could affect future progress.

Most importantly, the IMF pointed to labour and skills shortages. According to the report, these gaps could limit development if they remain unresolved. Therefore, IMF directors urged the government to address the issue quickly.

In addition, the IMF encouraged reforms to improve competitiveness and support long-term growth. Officials said stronger productivity could help the country expand more sustainably.

The report also stressed the need for better connectivity. As a result, the IMF recommended improvements to trade and tourism systems. Directors specifically called for streamlined port and customs procedures.

Furthermore, the IMF advised the government to carefully prioritize infrastructure projects. The organization said targeted investments could improve efficiency and support economic activity.

Despite the concerns, Antigua and Barbuda continued to record economic growth in 2025. The IMF estimated real GDP growth at 3 percent for the year. Construction activity mainly supported that expansion, even as tourism performance slowed.

Meanwhile, employment continued to recover gradually. The report noted that job levels have nearly returned to pre-pandemic conditions. At the same time, inflation eased sharply to 1.4 percent in 2025.

Although the outlook carries downside risks, the IMF also highlighted possible opportunities. For example, stronger tourism demand could support faster growth in the future.

Moreover, improved connectivity could help increase trade and visitor arrivals. The IMF added that productivity-enhancing reforms may also strengthen the country’s long-term economic outlook.

Still, officials warned that domestic constraints remain a serious concern. Without enough skilled workers, businesses could struggle to meet demand. Consequently, growth could weaken over time.

Global uncertainty also remains a challenge. Even so, the IMF said continued reforms could improve resilience and support economic stability.

Overall, the report painted a mixed picture for Antigua and Barbuda. While the economy continues to grow, the IMF said solving labour shortages and boosting productivity will remain critical for future expansion.