IMF SAYS A&B’S TAX REVENUES ARE LOW ‘BY PEER COUNTRY STANDARDS’

The International Monetary Fund says Antigua and Barbuda’s tax revenues are low “by peer country standards,” or countries in the similar development category.

The Fund’s Executive Board made the assessment following the conclusion of the 2025 Article IV Consultation with Antigua and Barbuda. It also says the country’s tax revenues remain below the authorities’ fiscal resilience guideline targets. The IMF indicates the Government’s 2024 budget measures have started to close the gap, but more will be needed in the medium term. The fund has also welcomed recent improvements in tax revenue.

The Gaston Browne administration has consistently indicated Antigua and Barbuda has the lowest tax-to-GDP ratio in the Caribbean, with a rate of about 17 per cent of GDP. This compares to the average of around 25 per cent in the Eastern Caribbean Currency Union.

Meanwhile, the IMF’s Executive Board says economic activity in Antigua and Barbuda is estimated to have surpassed pre-pandemic levels, driven by strong tourism and one-off events, including last year’s SIDS-4 Conference.

The Fund says downside risks emanate from elevated uncertainty about the global outlook; a deepening of geoeconomic fragmentation; commodity price volatility; climate-related vulnerabilities and capacity constraints in the construction sector.