the economy of antigua and barbuda is service-based, with tourism and government services representing the key sources of employment and income. tourism accounts directly or indirectly for more than half of gdp and is also the principal earner of foreign exchange in antigua and barbuda. however, a series of violent hurricanes since 1995 resulted in serious damage to tourist infrastructure and periods of sharp reductions in visitor numbers. in 1999 the budding offshore financial sector was seriously hurt by financial sanctions imposed by the united states and united kingdom as a result of the loosening of its money-laundering controls. the government has made efforts to comply with international demands in order to get the sanctions lifted. the dual island nation's agricultural production is mainly directed to the domestic market; the sector is constrained by the limited water supply and labor shortages that reflect the pull of higher wages in tourism and construction. manufacturing comprises enclave-type assembly for export with 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 us, which accounts for about one-third of all tourist arrivals. estimated overall economic growth for 2000 was 2.5%. inflation has trended down going from above 2 percent in the 1995-99 period and estimated at 0 percent in 2000.