Inflation in Antigua and Barbuda eased significantly in 2025 as the country’s economy continued to expand, according to the International Monetary Fund’s latest assessment of the twin-island state.

The IMF said average inflation fell from more than 6 percent in 2024 to 1.4 percent in 2025, while economic growth remained positive despite slower tourism activity.

Real GDP growth was estimated at 3 percent in 2025, supported largely by increased construction activity, the report stated.

The IMF noted that employment has also gradually recovered to pre-pandemic levels as the economy continues its expansion.

The report pointed to stronger fiscal performance over the past two years, aided by improved tax collection, increased Citizenship-by-Investment Programme inflows and restraint in current spending.

Public debt also continued to decline, falling from 101 percent of GDP in 2020 to an estimated 68 percent in 2025.

Despite the easing inflation and continued growth, the IMF cautioned that risks to the economy remain tilted to the downside due to global uncertainty, commodity price volatility and potential slowdowns among major trading partners.

The IMF said upside potential could still emerge from stronger tourism demand, improved connectivity and productivity-enhancing reforms.