The International Monetary Fund (IMF) has warned that Antigua and Barbuda must urgently address long-standing arrears and financing challenges, even as the country records economic growth and falling debt levels.

The warning came as the IMF Executive Board concluded its 2026 Article IV consultation with Antigua and Barbuda, highlighting both the country’s recent economic gains and the vulnerabilities that continue to threaten long-term fiscal sustainability.

According to the IMF, Antigua and Barbuda’s debt-to-GDP ratio fell sharply from 101 percent in 2020 to an estimated 68 percent in 2025, aided by stronger government revenues and tighter fiscal management.

But despite that improvement, the IMF said persistent arrears to Paris Club creditors and domestic suppliers continue to weigh heavily on the country’s ability to secure longer-term financing.

“Directors urged the authorities to develop and implement a credible and comprehensive strategy for addressing all arrears,” the IMF stated in its assessment.

The organization also cautioned that Antigua and Barbuda remains vulnerable to external shocks, including commodity price volatility and slowdowns in major trading partner economies.

Despite these concerns, the IMF acknowledged that Antigua and Barbuda’s economy continues to expand steadily, with real GDP growth estimated at 3 percent in 2025. Construction activity was identified as one of the key drivers of growth, while employment has nearly returned to pre-pandemic levels.

Inflation also moderated significantly, dropping to 1.4 percent in 2025 after exceeding 6 percent the previous year.

The IMF further encouraged Antigua and Barbuda to continue strengthening its tax system, improve fiscal oversight and invest in resilience-building infrastructure projects.

Officials also highlighted the importance of improving tourism connectivity, streamlining customs and port operations, and addressing labour and skills shortages to sustain economic momentum.