ECONOMY

Antigua’s economy is based on a open and free enterprise system. Until the 1960s, sugar production was the force behind the economy. After the 1960s, tourism has taken its place. With expansion and modernization has come the rapid increase of the external debt. Several public sector companies make up a large part of this debt: the Antigua and Barbuda Development Bank, the St. John’s Development Corporation, the Deep Bay Development Company, the Antigua Port Authority, and the Antigua Public Utilities Authority.

Key economic indicators in U.S.$ millions:

Economic Indicators	1990	1991	1992	1993	1994*
REAL GDP	418.7	421.9	435.2	456.9	494.5
GDP Growth Rate	2.7	1.4	1.7	3.5	3.5
GDP Per Capita (US$1)	4,985	6,591	6,769	7,084	7,435
BALANCE OF PAYMENTS
Current Account Balance	-51.9	-28.0	-48.1	-31.3	-26.6
Trade Balance (FOB)	-332.5	-320.8	-361.8	-374.9	-402.9
Merchandise Exports (FOB)	31.1	32.0	55.0	50.9	40.9
Merchandise Imports (CIF)	363.6	352.8	395.1	425.9	443.8
Service Balance	263.1	274.5	292.1	335.3	369.5
EXTERNAL DEBT
Total External Debt	328	352	359	373	396
CENTRAL GOVERNMENT FINANCE (EC $M)
Current Revenue	230.6	228.2	245.9	255.5	285.2
Current Expenditure	236.3	234.0	244.9	255.4	305.5
Current A/C Balance	2.2	-3.5	-11.3	0.1	-20.3
Overall Balance	-12.5	-30.4	-14.3	-19.9	-56.4
PRICES
Inflation Rate	7.0	2.1	4.5	3.0	3.5
Exchange Rate	2.70	2.70	2.70	2.70	2.70
* Preliminary Results

NOTE: All figures in US $ Millions unless stated otherwise.

Tourism

Out of all the Leeward and Windward Islands, Antigua tops the list with the largest tourism industry. This sector makes up about 60 percent of the country’s GDP. Tourists and cruise passengers have been increasing in their numbers to Antigua. The total number in 1990 was around 458,000. The year 1991 showed a slight decline of the number of visitors from the United States. In the last ten years, the number of hotel rooms has exploded to a total of approximately 2700 rooms. Recently, the government of Antigua and Barbuda approved further developments for the tourism industry.

A recent boost in the tourism sector was brought by the opening of a duty-free shopping complex called the Heritage Quay and the harbor development program in St. John’s. This provided tourists, especially cruise ship passengers, with very easy access to duty-free shopping and entertainment in this new complex.

Agriculture and fisheries

The agricultural industry has reduced its contribution to the GDP from more than 40 percent to about 12 percent, in the last 30 years. Although the population of Antigua has approximately doubled in these last three decades, the number of farmers has dropped to 2,000 from 8,000.

When the sugar industry declined dramatically, it left 60 percent of Antigua’s 66,000 acres in the hands of the government. The Ministry of Agriculture is working on policies whose goal is to obtain self-sufficiency in certain food items. Food imports account for approximately 25 percent of total imports.

The years 1990 and 1991 have seen a slight increase in the agricultural contribution, mainly in the area of crop production which rose by about 20 percent. Most of this produce was consumed within Antigua, while the exports of crops like pineapples and melons, rose dramatically.

Fishing is a promising area for expansion. About three millions pounds of fish are caught annually by inshore fishermen while Barbuda exports lobster at about 260,000 pounds per year.

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