The Governor of the Eastern Caribbean Central Bank, Timothy Antoine, who is
currently visiting the country along with a team from the bank, is recommending
that residents invest more in financial instruments.
This came out of his Country Report presented to the Cabinet during a two-hour
discussion on Wednesday. During the presentation, Governor Antoine provided
insights into the performance of the Antigua and Barbuda economy as well as
made projections and recommendations for strengthening Antigua and Barbuda’s
economic performance.
“For two hours, the Governor of the Bank held an interactive session with the
Cabinet, addressing a wide range of issues that hinge on good economic
performance in Antigua and Barbuda, and throughout the other ECCB member
countries. The Governor declared that resilience is the watchword that all the
member countries must adopt. They must in fact “bounce forward” following
every crisis,” according to sources close to the discussions.
He noted, for example, that Antigua and Barbuda’s health system has been
significantly strengthened in the post-Covid era. There are now more nurses and
doctors, medical personnel, hospital beds, polyclinics, and other health
infrastructure available than before the pandemic.
“The Governor noted that Antigua and Barbuda’s gross domestic product (GDP)
stands at 5 Billion EC dollars. What, he asked, would it take to double the size of
the economy? What would it take to double income in Antigua and Barbuda? The
Governor noted that while 60% of adults in the United States invest in financial
instruments, only 4% of the Antigua and Barbuda people invest in financial
instruments,” the ECCB Governor observed.
Further, he explained that while savings in Antigua and Barbuda exceeded 2
Billion EC Dollars, bank interest rates are at 2%, which is lower than the rate of
inflation. “More Antiguans and Barbudans need to invest in financial instruments
than is now taking place. He noted that inflation is declining in the United States;
the latest figures show inflation at 4%. Antigua and Barbuda import inflation,
which tracks the rate in the United States, such that inflation stands at about 5%,”
he suggested. According to the sources, nevertheless, the Antigua and Barbuda
national debt to GDP ratio has been declining; the acceptable ratio is 60%.
The Governor of the Central Bank and his team will make rounds to the Bankers
Association, the Chamber of Commerce and Industry, the Barbuda Council, and
others before departing on the weekend.
