ANTIGUA-Prime Minister presents an optimistic outlook on the 2025 budget presentation.

ST JOHN’S, Antigua, CMC—Prime Minister Gaston Brown on Thursday presented the National Budget for 2025 with the theme “Creating a Resilient, Harmonious, and Prosperous Nation.”

Browne, who is also the Minister of Finance, noted that the country continued to achieve remarkable real GDP growth of at least six percent in 2024, surpassing the International Monetary Fund’s (IMF) global growth projection of 3.2 percent, adding that the performance outstrips significant economies such as the United States, the Euro area, and the United Kingdom.

“Over the past three years, from 2021 to 2023, we have maintained an impressive average annual growth rate of 7.4 percent. Only Guyana has exceeded our region’s growth rate with its burgeoning oil and gas sector. This achievement is a testament to our economy’s effective management and people’s resilience.”

He noted that despite the country’s small size and challenges, including the existential climate emergency and limited access to concessional financing from global financial institutions, “we have not only rebounded but bounced forward from the devastatingly sharp 19 percent economic contraction in 2020, caused by the COVID-19 pandemic.”

The IMF has projected robust economic performance for Antigua and Barbuda and anticipates real GDP growth of 5.8 percent in 2024 and 3.5 percent in 2025.

“We have surpassed the 2024 projection and are confident that, with the continued support and contribution of every working person in our country, we will exceed the 3.5 percent growth forecast for 2025.”

According to Browne, the figures are not mere statistics but reflect the unwavering spirit of citizens and the soundness of economic strategies and policies.

“They indicate that your ABLP (Antigua and Barbuda Labour Party) administration is steadfast toward building a resilient, harmonious, and prosperous nation.

The Prime Minister said his Government is prepared to provide the roadmap for continued progress – “but every person is encouraged to contribute – leveraging their time, talent and resources to propel our nation forward. When every citizen and resident unite with relentless determination, we will create a resilient, harmonious, highly performing, and thriving nation – not just for 2025, but for generations to come!”

He said this year’s Budget is anchored on four transformative pillars that align with the development strategy –

Strengthening Macroeconomic Resilience, Expanding Economic Growth, and Creating Employment Opportunities

Enhancing Social and Gender Inclusion While Reducing Poverty and Vulnerability

Improving Productivity through Increased Access to Quality Education, Affordable Healthcare, and Housing

Adapting to Climate Change, Managing Disaster Risk, and Promoting Environmental Sustainability

Browne noted that while significant strides have been made, more needs to be done.

“In the coming year, we will continue our dedication to advancing Antigua and Barbuda and advocate unrelentingly for all who call this nation home.”

For 2024, we foresee vibrant and sustained growth across all major sectors of our economy – wholesale and retail trade, construction, public administration, and, most prominently, tourism.

Concerning that sector, he said that as of October 2024, stay-over visitor arrivals had surged by 17%—”a remarkable achievement born of strategic vision and bold, decisive actions. These courageous interventions define our Government’s leadership: solutions marked by creativity and foresight for the benefit of our nation.”

He pointed to Antigua’s successful hosting of the United Nations Small Island Developing States Conference in May of this year.

“By boldly stepping onto the world stage, we showcased Antigua and Barbuda’s capabilities and demonstrated that small nations can lead with vision and determination.”

He also pointed to the aviation sector and noted that the country’s global connectivity has been transformed.

“Introducing new airlines and expanding flights from carriers such as Condor, Sunrise Airways, Winair, LIAT 2020, JetBlue, and Frontier Airlines have strengthened our air transport network, creating greater tourism opportunities. This increased accessibility fuels the success of businesses: from restaurants and bars to catering services, tour, and taxi operators, among others.”

The Finance Minister also lauded the construction industry, stating that it continues to play a crucial role in the economy, contributing a record EC$$900 million ( one EC dollar = US$0.37 cents) to the national economy in 2024.

“This performance was propelled by work on major private sector projects such as the construction of Airbnb properties and the international franchise restaurant, The Hut, on Little Jumby Bay. In addition, several hotel properties were renovated, including the Hermitage Bay Resort, Carlisle Bay Resort, and the Royalton Chic Hotel, which was completed.”

Turning to Antigua and Barbuda’s robust post-pandemic recovery, he said it continues to create positive momentum in employment and economic stability.

“Based on data from the Antigua Barbuda Social Security Board, the total number of active jobs is expected to increase from 47,996 in 2023 to 49,915 in 2024, with those workers earning $1.8 billion. That’s approximately 2,000 additional jobs in a single fiscal year. We anticipate a further 2,000 jobs will be created in 2025 due to the strong demand for tourism and the construction of several luxury properties.”

‘The remarkable employment growth highlights the dynamism and resilience of our job market and translates to increased income for Social Security to deliver on its social mandate,” he said.

He said that the administration would increase the Social Security minimum pension next year from $350.00 to $500.00, emphasizing the Government’s commitment to improving the quality of life for all pensioners.

This follows on the heels of the Government’s minimum pension increase to $1,000 monthly.

“These figures underscore the success of our economic policies and our ability to promote growth and generate employment. Every citizen of Antigua and Barbuda has access to opportunities that improve their quality of life and empower them to contribute to our nation’s prosperity.”

The Finance Minister added that recent data from the Eastern Caribbean Central Bank (ECCB) highlighted significant improvements in financial resilience and strong economic performance over the past year.

“These achievements underscore the soundness of our government’s policies and the confidence they inspire.”

He said that although there are signs of slowing inflation, it remains a challenge.

“Since Antigua and Barbuda imports almost all of the products consumed by its population, it is expected that any price hikes globally will affect the domestic economy. However, the Government continues to pursue policies to help ease the burden of inflation and lessen the impact on households.”

“Our Government, the people’s Government, continues to provide crucial support to bus and taxi operators through its Fuel Voucher Subsidy Programme. For the first nine months of this year, the Government provided fuel support to 197 bus operators and 733 taxi operators, amounting to over 704,000 gallons of fuel for $2 million.”

He said that with the economy fully recovered. As persons without an income during the pandemic return to gainful employment, it is time to revisit this program and deliver more targeted support where needed.

“Let us, therefore, be clear, Mr. Speaker, concerning those who glibly state that the cost of living is high, and the Government is doing nothing about it: they are either ignorant of the facts or being deliberately and deceptively malicious.”

Turning to Non-Tax Revenue, Browne said this is expected to reach $319.1 million in 2024.

“This is a 167% increase, primarily driven by $103 million in forfeiture funds received from the sale of the Alfa Nero Superyacht. The 30% growth in CIP receipts to $80.4 million also contributed to the surge in non-tax revenue,” he said.

“Total expenditure is projected at $1.2 billion, a 21% increase from 2023, with wages and salaries constituting 38% of public sector spending. The $467.3 million spent on wages and salaries in 2024 includes the 9% salary increase for public sector employees.”

He added that the Treasury is making every effort to clear the backlog of gratuities owed to retired public servants but is having challenges contacting some individuals who retired in 2018 and 2019.

‘Anyone who retired in 2018 or 2019 and did not receive their gratuity can contact the Treasury Department to receive payment. A systematic approach is being used to ensure all amounts due are cleared once resources are available.”

He noted that although significant progress has been made in reducing the debt-to-GDP ratio to 62 percent, debt service remains challengingly high.

“The Ministry of Finance will embark on additional strategies to further reduce the debt service ratio and create fiscal space to fund inclusive socio-economic development.”

He said that while the country welcomes foreign investment, he also wants citizens to share in the benefits of tourism through bold initiatives to encourage domestic ownership.

Projects at Pensioners Beach, Morris Bay, Willoughby Bay, and Shell Beach offer Antiguans and Barbudans the opportunity to invest in prime coastal areas and establish ventures such as Airbnbs, condominiums, and residential properties.

We will also establish a golf course on the Northwestern coast of Barbuda and make lots available to Barbudans to construct Air BnB properties so that they can participate in this lucrative sector.

‘Our vision for a resilient, harmonious, and prosperous Antigua and Barbuda is realized through these strategic investments and achievements. As I said, our aspiration for an economic powerhouse is taking root. But this journey is far from over.”

“Together, with the dedication of our people and the strength of our policies, we will continue to transform our economy, create opportunities for all, and ensure that every citizen and resident can share in the prosperity of our nation,” he said.

In the field of Agriculture, he said the sector is projected to grow by at least 7 percent in 2024 and, in nominal terms, contribute $116 million to GDP. This is an increase in aggregate dollar and percentage terms.

He said that early in the new year, the Government will host an agricultural symposium to bring farmers, distributors, and investors together to catalyze more investments in the sector.

“In addition, our lucrative concessions to farmers, technical support, and subsidies will be scaled up in 2025 to increase domestic food production and to reduce the expanding import bill. The Central Marketing Corporation will be mandated to play a vital role in connecting local demand for fresh, healthy produce and meats to the harvest supplied by our farmers.”

The prime minister also emphasized his administration’s commitment to regional air connectivity and creating an enabling economic growth and development environment.

“We invested over $33 million to acquire three aircraft from the Caribbean Development Bank, part of the LIAT 1974 Limited fleet.

The airline currently serves eight Caribbean territories: St. Lucia, Barbados, Dominica, St. Kitts, St. Vincent, Guyana, and Grenada, and its home, Antigua. New routes will be added in the short term, including flights to the northern Caribbean, starting with Tortola.

He added that the Government is determined to address the concerns of former LIAT 1974 Ltd. workers, especially the more than 400 employees who were stationed in Antigua.

“As a demonstration of this commitment, the Government will make good on its promise to cover its share of the severance owed to these workers, based on Antigua and Barbuda’s 32 % shareholding, in LIAT 1974 Ltd.

We will issue a bond for the $16.7 million, representing 32 percent of the severance liability to the 400 hundred employees.”

He said this will be a ten-year instrument, with payments beginning this month and continuing annually until the $16.7 million principal plus interest is fully extinguished.

The finance minister assured the nation in his presentation that the Budget is more than a financial plan—”it is a declaration of our vision and commitment to a prosperous, equitable, and harmonious Antigua and Barbuda. It sets out a clear path for progress and prosperity, fortified by bold investments in infrastructure, social development, and economic resilience that will transform our .”

“Our ambitious infrastructure programs will continue to modernize our roads, electricity, and water systems and create employment opportunities that uplift our people and drive physical development for generations to come.”

“This Budget empowers the people, protects the vulnerable, and enhances the well-being of every household. Mr. Speaker, this is also a call to action for national cohesion, unity, and cooperation.

The challenges we face demand the strength of collective effort, the spirit of shared responsibility, and the resolve to build a bright future for all. Together, we can seize the opportunities this Budget provides to overcome obstacles and create a thriving nation,” he said.