Economy of Antigua and Barbuda

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Economy of Antigua and Barbuda
Currency	East Caribbean dollar (XCD)
Fiscal year	1 April - 31 March
Trade organisations	WTO, CARICOM
Statistics
GDP (PPP)	$750 million (2002 est.) (204th [1])
GDP growth	3% (2002 est.)
GDP per capita	$11,000 (2002 est.)
GDP by sector	agriculture: 3.9%, industry: 19.2%, services: 76.8% (2002)
Inflation (CPI)	0.4% (2000 est.)
Pop below poverty line	no data
Labour force	30,000
Labour force by occupation	agriculture: 7%, industry: 11%, services: 82% (1983)
Unemployment	11% (2001 est.)
Main industries	tourism, construction, light manufacturing (clothing, alcohol, household appliances)
Trading Partners
Exports	$214 million (2004 est.)
Export goods	petroleum products 48%, manufactures 23%, machinery and transport equipment 17%, food and live animals 4%, other 8%
Main partners	Spain 29.9%, Germany 18.2%, Poland 13.9%, Italy 6.4%, Singapore 5.1%, UK 4.4% (2005)
Imports	$735 million (2004 est.)
Imports goods	food and live animals, machinery and transport equipment, manufactures, chemicals, oil
Main Partners	US 20.3%, China 15.7%, Singapore 12.2%, Germany 10.9%, Spain 6.3% (2005)
Public finances
Public debt	$231 million (1999)
Revenues	$123.7 million (2000)
Expenses	$145.9 million (2000)
Economic aid	recipient: $2.3 million (1995)
Main source [2] All values, unless otherwise stated, are in US dollars

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 aboutUS $3 million and its U.S. imports totaled about US $84 million. It also belongs to the predominantly English-speaking Caribbean Community (CARICOM).

[edit] Economic History

Prior to colonization, several Amerindian groups inhabited Antigua and Barbuda, all of which relied on a subsistence lifestyle. British 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, rainforests 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.

[edit] Statistics

Industrial production growth rate: 6% (1997 est.)

Electricity - production: 90 GWh (1998)

Electricity - production by source:

• fossil fuel: 100%
• hydro: 0%
• nuclear: 0%
• other: 0% (1998)

Electricity - consumption: 84 GWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

Agriculture - products: cotton, fruits, vegetables, bananas, coconuts, cucumbers, mangoes, sugarcane; livestock

Currency: 1 East Caribbean dollar (EC$) = 100 cents

Exchange rates: East Caribbean dollars (EC$) per US$1 - 2.7000 (fixed rate since 1976)

[edit] References

• This article contains material from the CIA World Factbook which, as a US government publication, is in the public domain.
• This article contains material from the US Department of State's Background Notes which, as a US government publication, is in the public domain.
• Antigua's economy