St. Kitts and Nevis: economic growth higher than expected

St. Kitts and Nevis is a very attractive country when it comes to investment. IMF experts analysed the islands’ economy and were satisfied.   The end of April this year […]

St. Kitts and Nevis: economic growth higher than expected

Kiss Laszlo

St. Kitts and Nevis: economic growth higher than expected
22Jun 2016

St. Kitts and Nevis is a very attractive country when it comes to investment. IMF experts analysed the islands’ economy and were satisfied.

 

The end of April this year was marked by the IMF staff’s mission in St. Kitts and Nevis. Employees of the Foundation reviewed the state of the country’s economy and made a statement. The main conclusion of the experts? The economy of St. Kitts and Nevis is alive and is safely out of crisis, surpassing even the most optimistic forecasts.

 

Conditions of the IMF programme for overcoming the crisis are met

The country’s main forces in the fight against the crisis (the development of trade and tourism, and the construction of new houses) did not disappoint, and economic growth neared 5%. This is slightly less than the 6% of previous years, but not enough to be an issue. Inflation has declined due to the timely measures being taken, such as the abolition of VAT, price reductions for raw materials, and the elimination of import duties. The budget surplus lived up to expectations – 5% of the GDP.

 

Banking system

Private sector credit saw a modest recovery of 3.2% on the previous year. The whole system is stable and maintains a high level of liquidity.

There are high hopes pinned on the Stabilisation and Growth Fund (SGF), which was created in order to save up money and serve as a safety net, in case of a force majeure or natural disaster.

 

Citizenship through investment

The CBI (Citizenship By Investment) programme played a considerable role in the growth of the national economy. The invested money has funded the construction of new hotels and other infrastructure, which should considerably increase the number of tourists visiting the country.

The government has reformed the programme and now, in addition to the acquisition of property and contributions to the Sugar Industry Diversification Foundation, investments can also be made towards the development of health and education on the islands, and into renewable energy sources; the amount of places where those wishing to obtain St Kitts and Nevis’ citizenship can put their money has been expanded.

Moreover, the same real estate can give citizenship twice. It may be profitable for an owner to sell their property in five years time, due to prices constantly rising. If the new owner of the property is a foreigner, then they can also receive citizenship from this investment.

Bay view in St. Kitts and Nevis

Bay view in St. Kitts and Nevis

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