Economy of Antigua and Barbuda
Encyclopedia
Antigua and Barbuda's
economy
is service-based, with tourism
and government services representing the key sources of employment and income. Tourism accounts directly or indirectly for more than half of GDP
and is also the principal earner of foreign exchange in Antigua and Barbuda. However, a series of violent hurricanes since 1995 resulted in serious damage to tourist infrastructure
and periods of sharp reductions in visitor numbers. In 1999 the budding offshore financial sector was seriously hurt by financial sanctions imposed by the United States
and United Kingdom
as a result of the loosening of its money-laundering controls. The government has made efforts to comply with international demands in order to get the sanctions lifted. The dual island nation's agricultural production is mainly directed to the domestic market; the sector is constrained by the limited water supply and labor shortages that reflect the pull of higher wages in tourism and construction. Manufacturing comprises enclave-type assembly for export with major products being bedding, handicrafts, and electronic components. Prospects for economic growth in the medium term will continue to depend on income growth in the industrialized world, especially in the US, which accounts for about one-third of all tourist arrivals. Estimated overall economic growth for 2000 was 2.5%. Inflation has trended down going from above 2 percent in the 1995-99 period and estimated at 0 percent in 2000.
To lessen its vulnerability to natural disasters, Antigua has been diversifying its economy. Transportation, communications and financial services are becoming important.
Antigua is a member of the Eastern Caribbean Currency Union
(ECCU). The Eastern Caribbean Central Bank
(ECCB) issues a common currency (the East Caribbean dollar
) for all members of the ECCU. The ECCB also manages monetary policy, and regulates and supervises commercial banking activities in its member countries.
Antigua and Barbuda is a beneficiary of the U.S. Caribbean Basin Initiative
. Its 1998 exports to the U.S. were valued at about US $3 million and its U.S. imports totaled about US $84 million. It also belongs to the predominantly English-speaking Caribbean Community (CARICOM
).
colonists established settlements in the islands in 1632. After fighting off the Caribs, Dutch
, and French
to stabilize their colonies, settlers grew tobacco
, indigo, cotton
, and ginger
as cash crops. As on many other Caribbean islands, sugar
cultivation became the most profitable enterprise, quickly surpassing other crops in economic importance. Due to the vast tracts of land needed for large-scale sugar production, rainforest
s on the islands were decimated. Timber from the rainforests was used in shipbuilding and repair.
With the shift to a plantation economy
, slaves were imported from Africa
. Even after the abolition of slavery in 1834, former slaves continued working in servitude due to laws designed to keep providing plantations with cheap labor. As the sugar industry began to wane, the plantation economy came to an end.
is a profitable export crop. A modest amount of sugar is harvested each year, and there are plans for production of ethanol from sugarcane. Vegetables, including beans, carrots, cabbage, cucumbers, plantains, squash, tomatoes, and yams, are grown mostly on small family plots for local markets. Over the past 30 years, agriculture's contribution to the GDP has fallen from over 40% to 12%. The decline in the sugar
industry left 60% of the country's 66000 acres (267.1 km²) under government control, and the Ministry of Agriculture
is encouraging self-sufficiency in certain foods in order to curtail the need to import food, which accounts for about 25% by value of all imports. Crops suffer from droughts and insect pests, and cotton and sugar plantings suffer from soil depletion and the unwillingness of the population to work in the fields. Mango
production in 2004 was 1,430 tons.
and Black Belly sheep. There is a growing poultry
industry. In 1992, the European Development Bank provided $5 million US to the government to help develop the livestock industry.
and Martinique
. Antiguans annually consume more fish per capita
(46 kg/101.4 lb) per year live weight than any other nation or territory in the Caribbean. The main fishing waters are near shore or between Antigua and Barbuda. There are shrimp and lobster farms operating, and the Smithsonian Institution has a Caribbean king crab farming facility for the local market. The government has encouraged modern fishing methods and supported mechanization and the building of new boats. Fish landings in 2000 were 1,481 tons; the lobster catch, 42 tons. Exports of fish commodities in 2000 were valued at US$1.5 million.
, mahogany
, white cedar
, and acacia
. A reforestation
program was begun in 1963, linked with efforts to improve soil and water conservation
.
, clay
, and barite
, were exploited until recently. Limestone and volcanic stone have been extracted from Antigua
for local construction purposes, and the manufacture of bricks and tiles from local clay has begun on a small scale. Barbuda
produced a small amount of salt, while phosphate
has been collected from Redonda
.
Industry accounted for 19% of GDP in 2001. Manufacturing—which accounts for approximately 5% of GDP—comprises enclave-type assembly for export with major products being bedding, handicrafts, and electronic components. Prospects for economic growth depend on income growth in the industrialized world, especially in the US, which accounts for about half of all tourist arrivals. The industrial park, located in the Coolidge Area, produces a range of products such as paints, furniture, garments, and galvanized sheets, mainly for export.
Figures released by the East Caribbean Central Bank (ECCB) in 2000 show that total visitor arrivals increased steadily from 470,975 in 1995 to 613,990 in 1998. In 1999 total visitor arrivals declined by about 4.1 percent to 588,866, yet the number of visitors staying at least 1 night or more increased by 1.9 percent over 1998 to total 207,862. Arrivals via cruise ships in 1999 dropped to 325,195, a fall of 3.4 percent over 1998. The fall-off in cruise passengers was mainly the result of one of the larger cruise ships being out of service for a brief period. Most of the tourists in 1999 came from the United Kingdom and the United States. Visitor expenditures have increased steadily since 1990, with total expenditures of EC$782.9 million.
To combat increasing competition from other Caribbean destinations, the government and the Antigua Hotel and Tourist Association have established a joint fund to market the country's appeal as a tourist destination. The Association has agreed to match the proceeds from a 2 percent hotel guest levy introduced by the government.
At the start of March 2001, the Antigua Workers Union (AWU), the trade union which represents close to 7,000 workers in the tourism industry, described tourism as an industry in crisis. The AWU claimed the industry is on the decline because some airlines are pulling out of the country, and government was not spending enough money to promote tourism. While the government has conceded that it was not spending enough on marketing because of cash flow problems, it has rejected the AWU's contention that the industry is in crisis.
exerted considerable pressure on Antigua and Barbuda to reform laws to combat money laundering, even issuing an advisory in April 1999 to British financial institutions that Antigua and Barbuda's anti-money laundering laws were wanting. Antigua and Barbuda responded to this concern, and a subsequent joint United States and United Kingdom review reported they were satisfied that the country had taken positive steps to check illegal activity in this sector. In September 2000 the government of Antigua and Barbuda announced that it had strengthened its surveillance of money laundering
and drug trafficking. In March 2009, the Stanford Financial Group
, based in Antigua was found by regulators there and in the United States, of be operating a massive ponzi scheme
. The international bank controlled by the Stanford group is now in receivership pending the outcome of an investigation
but they can have big and small of all they can have
s. The government has been taking steps to improve this sector. A US$43.5 million vendors' mall and market has been built to provide better facilities for retailers in the capital. In addition, a US$27 million fisheries complex now provides improved facilities for fish processing and retailing. A growing area of computer business on Antigua is Internet casinos.
- $1.61 billion (2008 est.)
GDP - real growth rate: 2.1% (2008 est.)
GDP - per capita: purchasing power parity - $19,000 (2008 est.)
GDP - composition by sector:
agriculture:
3.8%
industry:
22%
services:
74.3% (2002 est.)
Inflation
rate (consumer prices):
1.5% (2007 est.)
Labor force:
30,000 (1991)
Unemployment rate: 11% (2001 est.)
Budget:
revenues:
$123.7 million
expenditures:
$145.9 million (2000 est.)
Central bank discount rate: 6.5% (January 2008)
Agriculture - products: cotton, fruits, vegetables, bananas, coconuts, cucumbers, mangoes, sugarcane; livestock
Industries: tourism, construction, light manufacturing (clothing, alcohol, household appliances)
Electricity - production: 105 million kWh (2006)
Electricity - consumption: 97.65 million kWh (2006)
Electricity - exports: 0 kWh (2007)
Electricity - imports: 0 kWh (2007)
Oil - production: 0 oilbbl/d (2007)
Oil - consumption: 4109 oilbbl/d (2006 est.)
Oil - exports: 157.7 oilbbl/d (2005)
Oil - imports: 4556 oilbbl/d (2005)
Oil - proved reserves: 0 bbl (0 l) (1 January 2006 est.)
Natural gas - production: 0 cu m (2007 est.)
Natural gas - consumption: 0 cu m (2007 est.)
Natural gas - exports: 0 cu m (2006 est.)
Natural gas - imports: 0 cu m (2006)
Natural gas - proved reserves: 0 cu m (1 January 2006 est.)
Exports: $84.3 million (2007 est.)
Exports - commodities: petroleum products 48%, manufactures 23%, machinery and transport equipment 17%, food and live animals 4%, other 8%
Exports - partners: Spain 34%, Germany 20.7%, Italy 7.7%, Singapore 5.8%, UK 4.9% (2006)
Imports: $522.8 million (2007 est.)
Imports - commodities: food and live animals, machinery and transport equipment, manufactures, chemicals, oil
Imports - partners: US 21.1%, China 16.4%, Germany 13.3%, Singapore 12.7%, Spain 6.5% (2006)
Debt - external: $359.8 million (June 2006)
Economic aid - recipient: $7.23 million (2005)
Currency
: 1 East Caribbean dollar
(EC$) = 100 cents
Exchange rates:
East Caribbean dollars per US dollar - 2.7 (2007), 2.7 (2007), 2.7 (2006), 2.7 (2005), 2.7 (2004), 2.7 (2003) note: fixed rate since 1976
Fiscal year:
1 April - 31 March
Antigua and Barbuda
Antigua and Barbuda is a twin-island nation lying between the Caribbean Sea and the Atlantic Ocean. It consists of two major inhabited islands, Antigua and Barbuda, and a number of smaller islands...
economy
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
is service-based, with tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
and government services representing the key sources of employment and income. Tourism accounts directly or indirectly for more than half of GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
and is also the principal earner of foreign exchange in Antigua and Barbuda. However, a series of violent hurricanes since 1995 resulted in serious damage to tourist infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
and periods of sharp reductions in visitor numbers. In 1999 the budding offshore financial sector was seriously hurt by financial sanctions imposed by the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
as a result of the loosening of its money-laundering controls. The government has made efforts to comply with international demands in order to get the sanctions lifted. The dual island nation's agricultural production is mainly directed to the domestic market; the sector is constrained by the limited water supply and labor shortages that reflect the pull of higher wages in tourism and construction. Manufacturing comprises enclave-type assembly for export with major products being bedding, handicrafts, and electronic components. Prospects for economic growth in the medium term will continue to depend on income growth in the industrialized world, especially in the US, which accounts for about one-third of all tourist arrivals. Estimated overall economic growth for 2000 was 2.5%. Inflation has trended down going from above 2 percent in the 1995-99 period and estimated at 0 percent in 2000.
To lessen its vulnerability to natural disasters, Antigua has been diversifying its economy. Transportation, communications and financial services are becoming important.
Antigua is a member of the Eastern Caribbean Currency Union
Eastern Caribbean Currency Union
The Eastern Caribbean Currency Union is a development of the Organization of Eastern Caribbean States, this organization is composed of Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. It is under the supervision of the Eastern Caribbean...
(ECCU). The Eastern Caribbean Central Bank
Eastern Caribbean Central Bank
The Eastern Caribbean Central Bank is the monetary authority of a group of six independent Caribbean nations namely:* Antigua and Barbuda,* Grenada,* Saint Kitts and Nevis,* Commonwealth of Dominica,* Saint Lucia,* Saint Vincent and the Grenadines,...
(ECCB) issues a common currency (the East Caribbean dollar
East Caribbean dollar
The East Caribbean dollar is the currency of eight of the nine members of the Organisation of Eastern Caribbean States...
) for all members of the ECCU. The ECCB also manages monetary policy, and regulates and supervises commercial banking activities in its member countries.
Antigua and Barbuda is a beneficiary of the U.S. Caribbean Basin Initiative
Caribbean Basin Initiative
The Caribbean Basin Initiative was a unilateral and temporary United States program initiated by the 1983 "Caribbean Basin Economic Recovery Act" . The CBI came into effect on January 1, 1984 and aimed to provide several tariff and trade benefits to many Central American and Caribbean countries....
. Its 1998 exports to the U.S. were valued at about US $3 million and its U.S. imports totaled about US $84 million. It also belongs to the predominantly English-speaking Caribbean Community (CARICOM
Caribbean Community
The Caribbean Community is an organisation of 15 Caribbean nations and dependencies. CARICOM's main purposes are to promote economic integration and cooperation among its members, to ensure that the benefits of integration are equitably shared, and to coordinate foreign policy...
).
Economic History
Prior to colonization, several Amerindian groups inhabited Antigua and Barbuda, all of which relied on a subsistence lifestyle. BritishEngland
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
colonists established settlements in the islands in 1632. After fighting off the Caribs, Dutch
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, and French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
to stabilize their colonies, settlers grew tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, indigo, cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, and ginger
Ginger
Ginger is the rhizome of the plant Zingiber officinale, consumed as a delicacy, medicine, or spice. It lends its name to its genus and family . Other notable members of this plant family are turmeric, cardamom, and galangal....
as cash crops. As on many other Caribbean islands, sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
cultivation became the most profitable enterprise, quickly surpassing other crops in economic importance. Due to the vast tracts of land needed for large-scale sugar production, rainforest
Rainforest
Rainforests are forests characterized by high rainfall, with definitions based on a minimum normal annual rainfall of 1750-2000 mm...
s on the islands were decimated. Timber from the rainforests was used in shipbuilding and repair.
With the shift to a plantation economy
Plantation economy
A plantation economy is an economy which is based on agricultural mass production, usually of a few staple products grown on large farms called plantations. Plantation economies rely on the export of cash crops as a source of income...
, slaves were imported from Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
. Even after the abolition of slavery in 1834, former slaves continued working in servitude due to laws designed to keep providing plantations with cheap labor. As the sugar industry began to wane, the plantation economy came to an end.
Agriculture
Some 30% of land on Antigua is under crops or potentially arable, with 18% in use. Sea-island cottonCotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
is a profitable export crop. A modest amount of sugar is harvested each year, and there are plans for production of ethanol from sugarcane. Vegetables, including beans, carrots, cabbage, cucumbers, plantains, squash, tomatoes, and yams, are grown mostly on small family plots for local markets. Over the past 30 years, agriculture's contribution to the GDP has fallen from over 40% to 12%. The decline in the sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
industry left 60% of the country's 66000 acres (267.1 km²) under government control, and the Ministry of Agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
is encouraging self-sufficiency in certain foods in order to curtail the need to import food, which accounts for about 25% by value of all imports. Crops suffer from droughts and insect pests, and cotton and sugar plantings suffer from soil depletion and the unwillingness of the population to work in the fields. Mango
Mango
The mango is a fleshy stone fruit belonging to the genus Mangifera, consisting of numerous tropical fruiting trees in the flowering plant family Anacardiaceae. The mango is native to India from where it spread all over the world. It is also the most cultivated fruit of the tropical world. While...
production in 2004 was 1,430 tons.
Animal husbandry
Livestock estimates in 2004 counted 14,300 head of cattle, 19,000 sheep, and 36,000 goats; there were some 5,700 hogs in the same year. Most livestock is owned by individual households. Milk production in 2004 was an estimated 5,350 tons. The government has sought to increase grazing space and to improve stock, breeding Nelthropp cattleCattle
Cattle are the most common type of large domesticated ungulates. They are a prominent modern member of the subfamily Bovinae, are the most widespread species of the genus Bos, and are most commonly classified collectively as Bos primigenius...
and Black Belly sheep. There is a growing poultry
Poultry
Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...
industry. In 1992, the European Development Bank provided $5 million US to the government to help develop the livestock industry.
Fishing
Most fishing is for local consumption, although there is a growing export of the lobster catch to the United States and of some fish to GuadeloupeGuadeloupe
Guadeloupe is an archipelago located in the Leeward Islands, in the Lesser Antilles, with a land area of 1,628 square kilometres and a population of 400,000. It is the first overseas region of France, consisting of a single overseas department. As with the other overseas departments, Guadeloupe...
and Martinique
Martinique
Martinique is an island in the eastern Caribbean Sea, with a land area of . Like Guadeloupe, it is an overseas region of France, consisting of a single overseas department. To the northwest lies Dominica, to the south St Lucia, and to the southeast Barbados...
. Antiguans annually consume more fish per capita
Per capita
Per capita is a Latin prepositional phrase: per and capita . The phrase thus means "by heads" or "for each head", i.e. per individual or per person...
(46 kg/101.4 lb) per year live weight than any other nation or territory in the Caribbean. The main fishing waters are near shore or between Antigua and Barbuda. There are shrimp and lobster farms operating, and the Smithsonian Institution has a Caribbean king crab farming facility for the local market. The government has encouraged modern fishing methods and supported mechanization and the building of new boats. Fish landings in 2000 were 1,481 tons; the lobster catch, 42 tons. Exports of fish commodities in 2000 were valued at US$1.5 million.
Forestry
About 11% of the land is forested, mainly by plantings of red cedarRed Cedar
- Trees :* Toona ciliata, an Australian / Asian rainforest tree* Juniperus virginiana, a North American juniper* Thuja plicata, a North American tree in the cypress family- Places :Canada* Red Cedar Lake , a lake in the Temagami region...
, mahogany
Mahogany
The name mahogany is used when referring to numerous varieties of dark-colored hardwood. It is a native American word originally used for the wood of the species Swietenia mahagoni, known as West Indian or Cuban mahogany....
, white cedar
White Cedar
White Cedar may refer to several different trees:* Cupressaceae:** Chamaecyparis thyoides – Atlantic White Cypress** Cupressus lusitanica – Mexican White Cedar** Thuja occidentalis – Eastern Arborvitae* Meliaceae:...
, and acacia
Acacia
Acacia is a genus of shrubs and trees belonging to the subfamily Mimosoideae of the family Fabaceae, first described in Africa by the Swedish botanist Carl Linnaeus in 1773. Many non-Australian species tend to be thorny, whereas the majority of Australian acacias are not...
. A reforestation
Reforestation
Reforestation is the natural or intentional restocking of existing forests and woodlands that have been depleted, usually through deforestation....
program was begun in 1963, linked with efforts to improve soil and water conservation
Water conservation
Water conservation refers to reducing the usage of water and recycling of waste water for different purposes such as cleaning, manufacturing, and agricultural irrigation.- Water conservation :Water conservation can be defined as:...
.
Mining
Few of the islands' mineral resources, which included limestone, building stoneRock (geology)
In geology, rock or stone is a naturally occurring solid aggregate of minerals and/or mineraloids.The Earth's outer solid layer, the lithosphere, is made of rock. In general rocks are of three types, namely, igneous, sedimentary, and metamorphic...
, clay
Clay
Clay is a general term including many combinations of one or more clay minerals with traces of metal oxides and organic matter. Geologic clay deposits are mostly composed of phyllosilicate minerals containing variable amounts of water trapped in the mineral structure.- Formation :Clay minerals...
, and barite
Barite
Baryte, or barite, is a mineral consisting of barium sulfate. The baryte group consists of baryte, celestine, anglesite and anhydrite. Baryte itself is generally white or colorless, and is the main source of barium...
, were exploited until recently. Limestone and volcanic stone have been extracted from Antigua
Antigua
Antigua , also known as Waladli, is an island in the West Indies, in the Leeward Islands in the Caribbean region, the main island of the country of Antigua and Barbuda. Antigua means "ancient" in Spanish and was named by Christopher Columbus after an icon in Seville Cathedral, Santa Maria de la...
for local construction purposes, and the manufacture of bricks and tiles from local clay has begun on a small scale. Barbuda
Barbuda
Barbuda is an island in the Eastern Caribbean, and forms part of the state of Antigua and Barbuda. It has a population of about 1,500, most of whom live in the town of Codrington.-Location:...
produced a small amount of salt, while phosphate
Phosphate
A phosphate, an inorganic chemical, is a salt of phosphoric acid. In organic chemistry, a phosphate, or organophosphate, is an ester of phosphoric acid. Organic phosphates are important in biochemistry and biogeochemistry or ecology. Inorganic phosphates are mined to obtain phosphorus for use in...
has been collected from Redonda
Redonda
Redonda is a very small, uninhabited Caribbean island which is part of Antigua and Barbuda, in the Leeward Islands, West Indies.This small island lies southwest of Antigua, in the waters between the islands of Nevis and Montserrat...
.
Secondary industries
Industrial activity has shifted from the processing of local agriculture produce to consumer and export industries using imported raw materials. Industrial products include rum, refined petroleum, paints, garments, furniture, and electrical components. The government encourages investment in manufacturing establishments, and most industries have some government participation.Industry accounted for 19% of GDP in 2001. Manufacturing—which accounts for approximately 5% of GDP—comprises enclave-type assembly for export with major products being bedding, handicrafts, and electronic components. Prospects for economic growth depend on income growth in the industrialized world, especially in the US, which accounts for about half of all tourist arrivals. The industrial park, located in the Coolidge Area, produces a range of products such as paints, furniture, garments, and galvanized sheets, mainly for export.
Tourism
Tourism is the mainstay of the economy of Antigua and Barbuda and is the leading sector in terms of providing employment and creating foreign exchange. In 1999 it contributed 60 percent of GDP and more than half of all jobs. According to the Americas Review 1998, tourism contributed 15 percent directly and around 40 percent indirectly to the GDP in 1998. Real growth in this sector has moved from an average of 7 percent for the period 1985-89 to 8.24 percent for the period 1990-95. There was slow growth between 1995 and 1998.Figures released by the East Caribbean Central Bank (ECCB) in 2000 show that total visitor arrivals increased steadily from 470,975 in 1995 to 613,990 in 1998. In 1999 total visitor arrivals declined by about 4.1 percent to 588,866, yet the number of visitors staying at least 1 night or more increased by 1.9 percent over 1998 to total 207,862. Arrivals via cruise ships in 1999 dropped to 325,195, a fall of 3.4 percent over 1998. The fall-off in cruise passengers was mainly the result of one of the larger cruise ships being out of service for a brief period. Most of the tourists in 1999 came from the United Kingdom and the United States. Visitor expenditures have increased steadily since 1990, with total expenditures of EC$782.9 million.
To combat increasing competition from other Caribbean destinations, the government and the Antigua Hotel and Tourist Association have established a joint fund to market the country's appeal as a tourist destination. The Association has agreed to match the proceeds from a 2 percent hotel guest levy introduced by the government.
At the start of March 2001, the Antigua Workers Union (AWU), the trade union which represents close to 7,000 workers in the tourism industry, described tourism as an industry in crisis. The AWU claimed the industry is on the decline because some airlines are pulling out of the country, and government was not spending enough money to promote tourism. While the government has conceded that it was not spending enough on marketing because of cash flow problems, it has rejected the AWU's contention that the industry is in crisis.
Financial services
Antigua and Barbuda is advertised as "an attractive offshore jurisdiction." The country were thene first of sign the United Nations' anti-money laundering act. This agreement came out of a conference in 1999 which urged worldwide offshore financial centers to introduce laws to tighten their policing of money laundering activities. The United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
exerted considerable pressure on Antigua and Barbuda to reform laws to combat money laundering, even issuing an advisory in April 1999 to British financial institutions that Antigua and Barbuda's anti-money laundering laws were wanting. Antigua and Barbuda responded to this concern, and a subsequent joint United States and United Kingdom review reported they were satisfied that the country had taken positive steps to check illegal activity in this sector. In September 2000 the government of Antigua and Barbuda announced that it had strengthened its surveillance of money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
and drug trafficking. In March 2009, the Stanford Financial Group
Stanford Financial Group
The Stanford Financial Group was a privately held international group of financial services companies controlled by Allen Stanford, until it was seized by United States authorities in early 2009....
, based in Antigua was found by regulators there and in the United States, of be operating a massive ponzi scheme
Ponzi scheme
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...
. The international bank controlled by the Stanford group is now in receivership pending the outcome of an investigation
but they can have big and small of all they can have
Retail
The retail sector is dominated by the sale of food and beverages, clothing and textiles, and vegetables. The main markets are located in the capital, St. John's. There are many street vendors and duty-free shopDuty-free shop
Duty-free shops are retail outlets that are exempt from the payment of certain local or national taxes and duties, on the requirement that the goods sold will be sold to travelers who will take them out of the country...
s. The government has been taking steps to improve this sector. A US$43.5 million vendors' mall and market has been built to provide better facilities for retailers in the capital. In addition, a US$27 million fisheries complex now provides improved facilities for fish processing and retailing. A growing area of computer business on Antigua is Internet casinos.
Statistics
GDP: purchasing power parityPurchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...
- $1.61 billion (2008 est.)
- country comparison to the world: 189
GDP - real growth rate: 2.1% (2008 est.)
- country comparison to the world: 161
GDP - per capita: purchasing power parity - $19,000 (2008 est.)
- country comparison to the world: 64
GDP - composition by sector:
agriculture:
3.8%
industry:
22%
services:
74.3% (2002 est.)
Inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
rate (consumer prices):
1.5% (2007 est.)
- country comparison to the world: 14
Labor force:
30,000 (1991)
- country comparison to the world: 197
Unemployment rate: 11% (2001 est.)
- country comparison to the world: 130
Budget:
revenues:
$123.7 million
expenditures:
$145.9 million (2000 est.)
Central bank discount rate: 6.5% (January 2008)
- country comparison to the world: 57
Agriculture - products: cotton, fruits, vegetables, bananas, coconuts, cucumbers, mangoes, sugarcane; livestock
Industries: tourism, construction, light manufacturing (clothing, alcohol, household appliances)
Electricity - production: 105 million kWh (2006)
- country comparison to the world: 188
Electricity - consumption: 97.65 million kWh (2006)
- country comparison to the world: 189
Electricity - exports: 0 kWh (2007)
Electricity - imports: 0 kWh (2007)
Oil - production: 0 oilbbl/d (2007)
- country comparison to the world: 116
Oil - consumption: 4109 oilbbl/d (2006 est.)
- country comparison to the world: 169
Oil - exports: 157.7 oilbbl/d (2005)
- country comparison to the world: 132
Oil - imports: 4556 oilbbl/d (2005)
- country comparison to the world: 161
Oil - proved reserves: 0 bbl (0 l) (1 January 2006 est.)
- country comparison to the world: 99
Natural gas - production: 0 cu m (2007 est.)
- country comparison to the world: 209
Natural gas - consumption: 0 cu m (2007 est.)
- country comparison to the world: 209
Natural gas - exports: 0 cu m (2006 est.)
- country comparison to the world: 206
Natural gas - imports: 0 cu m (2006)
- country comparison to the world: 205
Natural gas - proved reserves: 0 cu m (1 January 2006 est.)
- country comparison to the world: 206
Exports: $84.3 million (2007 est.)
- country comparison to the world: 199
Exports - commodities: petroleum products 48%, manufactures 23%, machinery and transport equipment 17%, food and live animals 4%, other 8%
Exports - partners: Spain 34%, Germany 20.7%, Italy 7.7%, Singapore 5.8%, UK 4.9% (2006)
Imports: $522.8 million (2007 est.)
- country comparison to the world: 189
Imports - commodities: food and live animals, machinery and transport equipment, manufactures, chemicals, oil
Imports - partners: US 21.1%, China 16.4%, Germany 13.3%, Singapore 12.7%, Spain 6.5% (2006)
Debt - external: $359.8 million (June 2006)
- country comparison to the world: 169
Economic aid - recipient: $7.23 million (2005)
Currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
: 1 East Caribbean dollar
East Caribbean dollar
The East Caribbean dollar is the currency of eight of the nine members of the Organisation of Eastern Caribbean States...
(EC$) = 100 cents
Exchange rates:
East Caribbean dollars per US dollar - 2.7 (2007), 2.7 (2007), 2.7 (2006), 2.7 (2005), 2.7 (2004), 2.7 (2003) note: fixed rate since 1976
Fiscal year:
1 April - 31 March