ST. JOHN’S, Antigua – Reporting that the country has bounced back after being battered by the COVID-19 pandemic, Prime Minister Gaston Browne on Thursday reported that the economy recorded 5.3 percent growth last year despite the difficult economic circumstances and the reduction in revenues throughout 2020 and 2021.
Prime Minister Gaston Browne delivering the 2022 Budget in Parliament on Thursday.Speaking in Parliament in his presentation of the 2022 Budget, he said the economy was growing at a rapid pace with tourism recovering and employment increasing.
The economy contracted by 20.2 percent in 2020. In nominal terms, the Gross Domestic Product (GDP) declined from $4.5 billion in 2019 to $3.7 billion in 2020.
Prime Minister Browne said that despite this, the policies and initiatives of his government delivered growth.
“Undoubtedly, the COVID-19 pandemic battered our economy in 2020 and 2021, as it did every country in the world without exception. But we bounced back, through solid leadership, to achieve 5.3 percent economic growth in 2021, as assessed by the Eastern Caribbean Central Bank. This is robust growth accomplished in a time of adversity,” Browne said.
“By any objective standard, Mr. Speaker, turning around the economy by more than 25 percentage points from a contraction of 20.2 percent in 2020 to growth of 5.3 percent in 2021 is a phenomenal feat.”
The Prime Minister applauded people partnership in growing the economy, adding that even with the challenges facing the country, no public servants were dismissed.
“This was part of our caring strategy, by which we ensured that there should be at least one wage earner in each household, even while the private sector was forced to lay off employees. It was not an easy undertaking,” he said.
While noting that wages, salaries, and pensions absorb almost 60 percent of government revenues, Brown said his government put the people first by paying public servants and deferring some expenditure on capital projects in 2021.
At the same time, he said, the administration managed to increase spending to contain the spread of COVID-19 and provided additional funds to the Sir Lester Bird Medical Centre.
“The residents of Antigua and Barbuda – all of them – come first, second, last and always in our government’s policies and programs. Our people must be commended for their sustained resilience and exceptional performance in 2021. It represented the single largest rebound of the economy in a twelve-month period,” stated the Antiguan leader.
During his presentation, entitled “Setting the Stage for Economic Rejuvenation”, pointed out that the twin-island nation was not burdened with new and huge debt even in the midst of the pandemic.
However, he said, there will be the need to increase borrowing to further stimulate the economy in 2022.
