The government has described Antigua and Barbuda’s recent classification as a high-income economy by the World Bank as a “bittersweet” achievement, arguing that while the designation reflects economic progress, it also limits the country’s access to concessional financing and development assistance.
Director General of Communications Maurice Merchant made the remarks Thursday during the weekly post-Cabinet media briefing when asked to comment on the World Bank’s latest income classification, released after Cabinet met on Wednesday.
Merchant acknowledged that the designation is a source of national pride but said it also presents challenges for a small island developing state.
“It’s a bittersweet moment for us,” he said. “While we rejoice that we have been tagged as a high-income country, on the flip side of that, we are a developing country within the OECS, a small nation, and we believe that we should be able to tap into certain funding and concessional loans and grants, etc., but our high-income status prevents us.”
Merchant said the classification means Antigua and Barbuda is increasingly viewed alongside much larger and wealthier economies despite continuing to face many of the vulnerabilities associated with small island states.
“It means that we are walking with the big boys while being a little boy, and we cannot partake in little boys’ business,” he said.
The comments came one day after the World Bank officially classified Antigua and Barbuda as a high-income economy based on its 2024 gross national income per capita.
Although the designation reflects stronger national income levels, successive governments have argued that international financial institutions should also consider factors such as climate vulnerability, limited economic diversification and exposure to external shocks when determining eligibility for concessional financing.
Merchant suggested that the country’s economic progress has come at the cost of reduced access to grants, low-interest loans and other forms of development assistance that remain available to lower-income countries.
His remarks echoed longstanding concerns raised by Caribbean governments that income classifications alone do not adequately reflect the unique challenges confronting small island developing states.
Despite those concerns, Merchant said the government remains pleased that Antigua and Barbuda’s economic performance has earned recognition as a high-income country, even as it continues advocating for financing models that take vulnerability, rather than income alone, into account.
This article was originally published by Antigua News Room. Read the original article here: Government Calls Antigua and Barbuda's High-Income Status 'Bittersweet' Over Loss of Concessional Financing.