Antigua and Barbuda economy: Temporary setback.

The twin-island nation of Antigua and Barbuda is part of the beautiful chain of Islands in the Caribbean that are synonymous with first class tourism. With beautiful beaches , clean and green, and special packages for honeymooners and water sports of the highest quality, they are a must visit on the itinerary of the globe trotters.

Tourism and financial services have now become the economic mainstay of the Islands. Low taxes and a liberal corporate regime have made the Islands a tax haven, and in fact, have got them into trouble on account of money laundering laws that are being taken more seriously nowadays.

Apart from these two major activities, the Government is diversifying into manufacturing, fishing and even agriculture. Gaming and gambling are also gaining in importance as revenue spinners catering to foreign tourists.

Sugarcane, cotton, fruits, and vegetables are the major agricultural produce, while tourism, construction, financial services, and light manufacturing are the industrial activities. Over 80% of the workforce is engaged in services, followed by 11% in industry, and 7% in agriculture. The GDP per ca pita of the Island in 2008 was around USD 19000.00. The Islands export electronic components, foodstuffs, handicrafts and petroleum products, and import machinery and equipment, chemicals, oil, livestock, etc.

The Islands have signed an Economic Partnership Agreement with the EU. They receive aid from the EU under its Economic Development Fund. The Islands also benefit from the U.S. Caribbean Basin Initiative that gives access to U.S. markets for many goods. Another source of revenues to the Islands are American Military bases located on the Islands.

Antigua and Barbuda are prosperous Islands that have enjoyed good growth for several years until the global economic crisis arrived on the scene. There is enough scope for these Islands to regain their earlier growth rates in future.