Antigua and Barbuda - Economy

Economy

Tourism dominates the economy, accounting for more than half of the Gross Domestic Product (GDP). Antigua is famous for its many luxury resorts. Weak tourist activity since early 2000 has slowed the economy, however, and squeezed the government into a tight fiscal corner.

Investment banking and financial services also make up an important part of the economy. Major world banks with offices in Antigua include the Royal Bank of Canada (RBC) and Scotia Bank. Financial-services corporations with offices in Antigua include PriceWaterhouseCoopers. The US Securities and Exchange Commission has accused the Antigua-based Stanford International Bank, owned by Texas billionaire Allen Stanford, of orchestrating a huge fraud which may have bilked investors of some $8 billion. (check status 20100312)

The twin-island nation's agricultural production is focused on its domestic market and constrained by a limited water supply and a labor shortage stemming from the lure of higher wages in tourism and construction work.

Manufacturing is made up of enclave-type assembly for export, the major products being bedding, handicrafts and electronic components. Prospects for economic growth in the medium term will continue to depend on income growth in the industrialized world, especially in the United States, from which about one-third of all tourists come.

Following the opening of the American University of Antigua College of Medicine by investor and attorney Neil Simon in 2003, a new source of revenue was established. The university employs many local Antiguans and the approximate 1000 students consume a large amount of the goods and services.