Home > Economy of Saint Kitts and Nevis

The government instituted a program of investment incentives for businesses considering the possibility of locating in St. Kitts or Nevis, encouraging both domestic and foreign private investment. Government policies provide liberal tax holiday s, duty-free import of equipment and materials, and subsidies for training provided to local personnel. Tourism has shown the greatest growth. By 1987, tourism had surpassed sugar as the major foreign exchange earner for St. Kitts and Nevis.

The economy of St. Kitts and Nevis experienced strong growth for most of the 1990s but hurricanes in 1998 and 1999 contributed to a sharp slowdown . Real economic growth was 0.75 % in 2002 after a decline of 4.3 % in 2001. The economy experienced a mixed performance during 2002, with some sectors experiencing positive growth while others experienced varying levels of decline. The construction sector recorded a 4.51 % decline, manufacturing and hotels and restaurants also recorded significant declines of 4.01 and 9.89 % respectively, and sugar production fell by 5.1 %. Significant new investment in tourism, including a 648-room Marriott hotel and convention center that opened in December 2002, as well as continued government efforts to diversify the economy, are expected to improve economic performance. Consumer prices have risen marginally over the past few years. The inflation rate was 3%-4% for most of the 1990s.

St. Kitts and Nevis is a member of the Eastern Caribbean Currency Union (ECCU) The Eastern Caribbean Central Bank (ECCB) issues a common currency (the East Caribbean Dollar) for all members of the ECCU. The ECCB also manages monetary policy, and regulates and supervises commercial banking activities in its member countries.

St. Kitts is a member of the Eastern Caribbean Telecommunications (ECTEL) authority, which is developing the regulations to liberalize the telecommunications sector in the region by 20042004 is a leap year starting on Thursday (the link is to a full 2004 calendar), and has also been designated the: International Year of Rice International Year to Commemorate the Struggle against Slavery and its Abolition Elections are to be held in 73 co.

Economy - overview

The economy has traditionally depended on the growing and processing of sugar cane; decreasing world prices have hurt the industry in recent years. Tourism, export-oriented manufacturing, and offshore banking activity have assumed larger roles. Most food is imported. The government has undertaken a program designed to revitalize the faltering sugar sector. It is also working to improve revenue collection in order to better fund social programs. In 19971997 was a common year starting on Wednesday (see link for calendar), and was designated the International Year of the Reef''. Events January January 3 NBC's Today Show Bryant Gumbel signs off for the last time January 8 Mister Rogers receives a star on t, some leaders in NevisNevis is an island in the Caribbean, whose name is derived from an original Spanish name given by Christopher Columbus. With Saint Kitts it constitutes the nation of Saint Kitts and Nevis. Indeed during the last Ice age the sea level was 200 feet lower an were urging separation from Saint KittsSaint Kitts (also previously known as Saint Christopher) is an island in the Caribbean. The residents call themselves Kittitians. Kitts constitutes the nation of Saint Kitts and Nevis with the island of Nevis. During the last Ice age, the sea level was 20 on the basis that Nevis was paying far more in taxes than it was receiving in government services, but the vote on cessation failed in August 1998. In late September 1998, Hurricane Georges caused approximately $445 million in damages and limited GDPIn economics, the gross domestic product GDP is a measure of the amount of the economic production of a particular territory in financial capital terms during a specific time period. Definition GDP is defined as the total value of all goods and services p growth for the year.

GDP:

GDP - real growth rate: 1.6% (1998 est.)

GDP - per capita: purchasing power parity - $6,000 (1998 est.)

GDP - composition by sector: agriculture: 5.5% industry: 22.5% services: 72% ( 1996)

Inflation rate (consumer prices): 1% (1998 est.)

Labor force: 18,172 (June 1995)

Unemployment rate: 4.5% (1997)

Budget: revenues: $64.1 million

expenditures: $73.3 million, including capital expenditures of $10.4 million ( 1997 est.)

Industries: sugar processing, tourism, cotton, salt, copra, clothing, footwear, beverages

Electricity - production: 85 GWh ( 1998)

Electricity - production by source: fossil fuel: 100% hydro: 0% nuclear: 0% other: 0% (1998)

Electricity - consumption: 79 GWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

Agriculture - products:

Exports: $42 million (1998)

Exports - commodities: machinery, food, electronics, beverages, tobacco

Exports - partners:

Imports: $160 million (1998)

Imports - commodities: machinery, manufactures, food, fuels

Imports - partners:

Debt - external: $62 million ( 1997)

Economic aid - recipient: $5.5 million ( 1995)

Currency: 1 East Caribbean dollar (EC$) = 100 cents

Exchange rates: East Caribbean dollars (EC$) per US$1 - 2.7000 (fixed rate since 1976)

Fiscal year: calendar year