According to the Economic Commission of Latin America and the Caribbean (ECLAC), Antigua and Barbuda is expected to maintain its position as the second-fastest-growing economy in the region.
Only Guyana, which is rich in oil, is growing at a faster rate than the twin-island nation.
Antigua and Barbuda is projected to achieve a GDP growth rate of 9.5% this year, followed by a slight decline to 8.5% next year.
ECLAC recently issued its updated financial report titled ‘Economic Survey of Latin America and the Caribbean 2023: Financing a sustainable transition: investment for growth and climate change action’.
The report forecasts that most regional economies will experience low levels of growth in 2023 and 2024 due to a negative global and complex regional economic outlook.
Excluding Guyana, the Caribbean region is anticipated to achieve a growth rate of 4.2% in 2023, compared to 6.3% in 2022.
The report attributes the relative slowdown in economic growth in the region to various factors such as falling revenues, increasing public debt, a struggling labour market, and inadequate climate financing.
The report also highlights that global economic activity, declining international trade volumes, high inflation, and financial and commodity market volatility have negatively impacted the economic prospects of developing regions and hindered the achievement of the Sustainable Development Goals (SDGs).
The report also suggests that the economic outlook for the Caribbean’s citizenship by investment programs remains uncertain.
The report states that it is hard to predict what will happen to the citizenship by investment programs of the Eastern Caribbean Currency Union countries, particularly Saint Kitts and Nevis, which are large in size.
The report further argues that if investments in climate change adaptation and mitigation are not made in countries that need them, this could further impede economic growth.
The report calls for an unprecedented and sustained investment push to offset the economic losses caused by climate change.