News

IMF Projects “Continued Recovery in Tourism” in St Kitts and Nevis

By: Caribbean Journal Staff - February 3, 2014

Above: St Kitts (CJ Photo)

St Kitts and Nevis is making “considerable progress” in its economic reform programme, according to the International Monetary Fund, which recently concluded a visit to the twin-island federation.

The IMF mission, which began Jan. 20 and concluded on Friday, involved discussions on the 2014 Article IV consultation and the seventh and eighth reviews under a three-year Stand-By Arrangement.

““There has been considerable progress under the authorities’ economic reform program. After a four-year contraction of economic activity there were firm signs of a recovery in 2013,” said Judith Gold, who led the mission.

In 2013, real GDP is estimated to have grown by 1.7 percent, the IMF said, with a pickup in tourism and construction, despite declines in manufacturing and communications.

The recovery in tourism and a “strong increase” in Citizenship by Investment application fees helped lower the country’s current account deficit from over 20 percent in 2011 to 11-12 percent in 2012 and 2013, the fund said.

“Growth in 2014 is expected to accelerate to 2.5-3 percent, with the continued recovery in tourism — supported by an increase in air lift capacity — and ongoing construction activity fueled by CBI related inflows and other Foreign Direct Investment (FDI) projects,” Gold said. “Over the medium-term, the economy is expected to continue to recover and reach its potential growth rate of about 3-3.5 percent.”

The mission said that continued fiscal discipline would be required over the medium term to achieve St Kitts and Nevis’ public debt target of 60 percent of GDP by 2020.

“While CBI receipts could support a more expansionary fiscal stance, relying on these windfall flows for recurrent spending could lead to an unsustainable fiscal position in the future. Instead, the inflows provide a unique opportunity to build fiscal buffers, including to provide for humanitarian assistance and reconstruction after natural disasters, increase public investment in infrastructure stabilize the economy during downturns, and repay expensive debt,” Gold said.

The IMF mission met with St Kitts and Nevis Prime Minister Dr Denzil Douglas, Nevis Premier Vance Amory and other officials.

Popular Posts w punta cana

A New All-Inclusive W Hotel Is Opening This Year in Punta Cana 

The first-ever all-inclusive W Hotel in the Caribbean is opening this year in Punta Cana, Dominican Republic, Caribbean Journal has learned.  The hotel, part of a broad expansion for parent company Marriott International, is on the list of expected 2024 […]


Why Grenada Is a New Caribbean Luxury Hotspot

beach house silversands

From its world-renowned chocolate to its pristine beaches to a region-leading focus on sustainability, Grenada is as fascinating and unique as destination as you’ll find in the Caribbean.  But in the last few years, the lush Eastern Caribberan island has […]


5 Adults-Only Resorts to Visit Right Now in the Caribbean 

galley bay

Sometimes you just want that extra degree of serenity, of privacy, of seclusion. There is a reason, after all, that adults-only resorts are booming in popularity, particularly in the Caribbean: travelers want to know that when they arrive, they know […]


Related Posts nobu los cabos

Frontier Is Adding a New Nonstop Flight to Los Cabos 

It’s one of the most popular hotel destinations in Mexico: Los Cabos, which has seen a broad boom in recent years with the entry to market of brands like Nobu, Thompson, Marriott and Waldorf Astoria, among others.  That has led, […]


This Former Caribbean Rockefeller Resort Is for Sale

caribbean rockefeller resort

In 1986, Laurance Rockefeller, the founder of Rock Resorts, developed 27 acres of prime beachfront land into what was for decades one of the sought after places to stay in the Caribbean. Now, the four-star, 150-room resort is for sale, […]


Vote for the 2024 Caribbean Green Awards, from Green Energy to Sustainable Hotels

caribbean green

Hotels serving organic food grown by local farmers. Airports powered by large solar fields. Pristine coastlines protected by marine parks. Real estate developments fueled by clean energy. It’s an exciting time for the Green movement in the Caribbean, a region […]


SUBSCRIBE!

Sign up for Caribbean Journal's free newsletter for a daily dose of beaches, hotels, rum and the best Caribbean travel information on the net.


No. Thank You