ST JOHN’S, Antigua, Dec. 5, CMC – Prime Minister Gaston Brown on Thursday presented the National Budget for 2025 under the theme: “Creating a Resilient, Harmonious, and Prosperous Nation.”
Browne, who is also the Minister of Finance noted that the country continued to achieve remarkable real GDP growth of at least six per cent in 2024, surpassing the International Monetary Fund’s (IMF) global growth projection of 3.2 per cent, adding that the performance outstrips major economies such as the United States, the Euro area, and the United Kingdom.
“Over the past three years, from 2021 to 2023, we have maintained an impressive average annual growth rate of 7.4 per cent. In our region, only Guyana, with its burgeoning oil and gas sector, has exceeded our growth rate.This achievement is a testament to the effective management of our economy and the resilience of our people.”
He noted that despite the small size of the country and the challenges, including the existential climate emergency and limited access to concessional financing from global financial institutions – “we have not only rebounded, but bounced forward from the devastatingly sharp 19 per cent economic contraction in 2020, caused by the COVID-19 pandemic.”
The IMF has projected robust economic performance for Antigua and Barbuda and is anticipating real GDP growth of 5.8 per cent in 2024 and 3.5 per cent in 2025.
“We have surpassed the 2024 projection and are confident that, with the continued support and contribution of every working person in our country, we will exceed the 3.5 per cent growth forecast for 2025.”
According to Browne, the figures are not mere statistics but they reflect the unwavering spirit of citizens people and the soundness of economic strategies and policies.
“They indicate that your ABLP (Antigua and Barbuda Labour Party) administration is on a steadfast path toward building a resilient, harmonious, and prosperous nation.
The Prime Minister said his Government is prepared to provide the roadmap for continued progress – “but every person is encouraged to contribute – leveraging their time, talent and resources to propel our nation forward. When every citizen and resident unite with relentless determination; we will create a resilient, harmonious, highly performing and thriving nation – not just for 2025, but for generations to come!”
He said this year’s budget is anchored on four transformative pillars that align withtheb development strategy –
- Strengthening Macroeconomic Resilience, Expanding Economic Growth, and Creating Employment Opportunities
- Enhancing Social and Gender Inclusion While Reducing Poverty and Vulnerability
- Improving Productivity through Increased Access to Quality Education, Affordable Healthcare, and Housing
- Adapting to Climate Change, Managing Disaster Risk, and Promoting Environmental Sustainability
Browne noted that while significant strides have been made, more needs to be done.
“In the coming year, we will continue our dedication to advancing Antigua and Barbuda and advocate unrelentingly for all who call this nation home.”
For 2024, we foresee vibrant and sustained growth across all major sectors of our economy – wholesale and retail trade, construction, public administration, and, most prominently, tourism.
Concerning that sector, he said that as of October 2024, stay-over visitor arrivals have surged by 17% – “a remarkable achievement born of strategic vision and bold, decisive actions. It is these courageous interventions that define our government’s leadership: solutions marked by creativity and foresight for the benefit of our nation.”
He pointed to Antigua’s successful hosting of the United Nations Small Island Developing States Conference in May of this year.
“By boldly stepping onto the world stage, we not only showcased Antigua and Barbuda’s capabilities, but also demonstrated that small nations can lead with vision and determination.”
He also pointed to the aviation sector and noted that the country try’s connectivity to the world has been transformed.
“The introduction of new airlines and the expansion of flights from carriers such as Condor, Sunrise Airways, Winair, LIAT 2020, JetBlue, and Frontier Airlines have strengthened our air transport network, creating greater opportunities for tourism.This increased accessibility fuels the success of businesses: from restaurants and bars to catering services, tour and taxi operators, among others.”
The Finance Minister also lauded the construction industry by stating that it continues to play a crucial role in the economy, contributing a record EC$$900 million ( one EC dollar=US$0.37 cents) to the national economy in 2024.
“This performance was propelled by work on major private sector projects such as construction of Airbnb properties and the international franchise restaurant, The Hut, on Little Jumby Bay. In addition, several hotel properties were renovated including the Hermitage Bay Resort, Carlisle Bay Resort, and the Royalton Chic Hotel was completed.”
Turning tonAntigua and Barbuda’s robust post-pandemic recovery, he said thus continues to create positive momentum in employment and economic stability.
“Based on data from the Antigua Barbuda Social Security Board, the total number of active jobs is expected to increase from 47,996 in 2023 to 49,915 in 2024, with those workers earning $1.8 billion. That’s approximately 2,000 additional jobs in a single fiscal year. We anticipate a further 2,000 jobs will be created in 2025, due to the strong demand for tourism and the construction of several luxury properties.”
‘The remarkable employment growth highlights the dynamism and resilience of our job market and translates to increased income for Social Security to deliver on its social mandate,” he said.
He said that is administration will increase the Social Security minimum pension next year from $350.00 to $500.00, emphasizing the government’s commitment to improving the quality of life for all pensioners.
This follows on the heels of the increase in the government’s minimum pension to $1,000 monthly.
“These figures underscore the success of our economic policies and our ability to promote growth and generate employment. Every citizen of Antigua and Barbuda has access to opportunities that improve their quality of life and empower them to contribute to our nation’s prosperity.”
The finance Minister added that recent data from the Eastern Caribbean Central Bank (ECCB) highlighted significant improvements in financial resilience and strong economic performance over the past year.
“These achievements underscore the soundness of our government’s policies and the confidence they inspire.”
Concerning inflation, he said although there are signs of slowing inflation, it remains a challenge .
“Since Antigua and Barbuda imports almost all of the products consumed by its population, it is expected that any price hikes globally will affect the domestic economy. However, the Government continues to pursue policies to help ease the burden of inflation and lessen the impact on households.”
“Our government, the people’s government, continues to provide crucial support to bus and taxi operators through its Fuel Voucher Subsidy Programme. For the first nine months of this year the government provided fuel support to 197 bus operators and 733 taxi operators amounting to over 704,000 gallons of fuel at a cost of $2 million.”
He said that with the economy fully recovered and as persons who were without an income during the pandemic returning to gainful employment, it is time to revisit this programme and deliver more targeted support where needed.
“Let us, therefore, be clear, Mr. Speaker, concerning those who glibly state that the cost-of-living is high, and the Government is doing nothing about it: they are either ignorant of the facts or they are being deliberately and deceptively malicious.”
Turning to Non-Tax Revenue, Browne said this is expected to reach $319.1 million in 2024.
“This is a 167% increase, which is primarily driven by $103 million in forfeiture funds received from the sale of the Alfa Nero Superyacht. The 30% growth in CIP receipts to $80.4 million also contributed to the surge in non-tax revenue,” he said.
“Total expenditure is projected at $1.2 billion, a 21% increase from 2023, with wages and salaries constituting 38% of public sector spending. The $467.3 million spent on wages and salaries in 2024 includes the 9% salary increase for public sector employees.”
He added that the Treasury is making every effort to clear the backlog of gratuities owed to retired public servants, but has challenges contacting some individuals who retired in 2018 and 2019.
‘Anyone who retired in 2018 or 2019 and did not receive their gratuity can contact the Treasury Department to receive payment. A systematic approach is being used to ensure all amounts due are cleared once resources are available.”
He noted that although significant progress has been made to reduce the debt to GDP ratio to 62 per cent, debt service remains challengingly high.
“The Ministry of Finance will embark on additional strategies to further reduce the debt service ratio and create fiscal space to fund inclusive socio-economic development.”
He said as the country welcomes foreign investment, he also wants citizens to share in the benefits of tourism, through bold initiatives to encourage domestic ownership.
Projects at Pensioners Beach, Morris Bay, Willoughby Bay, and Shell Beach offer Antiguans and Barbudans the opportunity to invest in prime coastal areas, establishing ventures such as Airbnb’s, condominiums, and residential properties.
We will also establish a golf course on the Northwestern coast of Barbuda and will make lots available to Barbudans to construct Air BnB properties, so that they too can participate in this lucrative sector.
‘Our vision for a resilient, harmonious, and prosperous Antigua and Barbuda, is being realized through these strategic investments and achievements. As I said before, our aspiration for an economic powerhouse is taking root.But this journey is far from over.”
“Together, with the dedication of our people and the strength of our policies, we will continue to transform our economy, create opportunities for all, and ensure that every citizen and resident can share in the prosperity of our nation,” he said.
In the field of Agriculture , he said the sector is projected to grow by at least 7 per cent in 2024 and, in nominal terms, contribute $116 million to GDP. This is an increase in aggregate dollar and percentage terms.
He said that early in the new year, the government will host an agricultural symposium that will bring farmers, distributors and investors together to catalyze more investments in the sector.
“In addition, our lucrative concessions to farmers, technical support and subsidies will be scaled up in 2025, to increase domestic food production and to reduce the expanding import bill. The Central Marketing Corporation will be mandated to play a vital role in connecting local demand for fresh, healthy produce and meats to the harvest supplied by our farmers.”
The prime minister also emphasized his administration’s commitment to to regional air connectivity and creating an enabling environment for economic growth and development.
“ We invested over $33 million to acquire 3 aircraft, which were part of the LIAT 1974 Limited fleet, from the Caribbean Development Bank.
The airline currently serves 8 Caribbean territories: St. Lucia; Barbados; Dominica, St. Kitts, St. Vincent, Guyana and Grenada, and its home – Antigua. New routes will be added in the short term, including flights to the northern Caribbean starting with Tortola.”
He added that the government is determined to address the concerns of former LIAT 1974 Ltd. workers, especially the more than 400 employees who were stationed in Antigua.
“As a demonstration of this commitment, the Government will make good on its promise to cover its share of the severance owed to these workers, based on Antigua and Barbuda’s 32 % shareholding, in LIAT 1974 Ltd.
We will issue a bond for the $16.7 million which represents 32 per cent of the severance liability to the 400 hundred employees.”
He said this will be a ten-year instrument on which payments will begin this month and continue annually, until the $16.7 million principal plus interest is fully extinguished.
The finance minister in his presentation assured the nation that the Budget is more than a financial plan – “it is a declaration of our vision and commitment to a prosperous, equitable, and harmonious Antigua and Barbuda.It sets out a clear path for progress and prosperity, fortified by bold investments in infrastructure, social development, and economic resilience that will transform our .”
“Our ambitious infrastructure programmes will not only continue to modernize our roads, electricity, and water systems, but also create employment opportunities that uplift our people and drive physical development for generations to come.”
“This is a Budget that empowers the people, protects the vulnerable, and enhances the wellbeing of every household. Mr. Speaker, this is also a call to action: A call for national cohesion, unity, and cooperation.
The challenges we face demand the strength of collective effort, the spirit of shared responsibility, and the resolve to build a future that is bright for all. Together, we can seize the opportunities this Budget provides, to overcome obstacles and create a nation that thrives,” he said.
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