That’s according to the September 2010 Economic and Financial Review released by the Eastern Caribbean Central Bank (ECCB). This is the latest economic profile on the Federation’s economy to be issued by the Basseterre-based Eastern Caribbean Central Bank.
The authoritative and independent report on OECS member states tells us that the economy of St. Kitts and Nevis contracted in the period January to September 2010. The bank’s assessment revealed that most economic sectors declined except agriculture during the period January to September 2010.
Stay over tourists fell 4.3% or 3201 tourists over period January to September 2010 while cruise visitors increased by 12.7 %. Notwithstanding the increase in the number of cruise visitors however, gross travel receipts as represented by total visitors expenditure are estimated to have declined by 1.1 percent on account of a decrease in the number of stay over visitors. This statistic reveals the stay over visitors spent significantly more than the cruise visitors.
Imports of construction materials fell 34.6 percent. Quarry and Mining sector declined by 51.6 percent, and the manufacturing sector fell 17.2 %. Government realized a deficit of $54.9 million over the 9 month period in contrast to $29.6 million in surplus achieved in same period 2009. A primary surplus of $37.6 million was realized in 2010 down from the $108.7 million achieved in the first 9 months of 2009.Tax revenue fell by approximately 16 percent reflecting the reduction in demand and profits in the domestic economy.
In contrast, output in the agricultural sector increased due to a higher level of production in the crop and fisheries subsector which rose by 13.3 percent and 10 percent respectively.
In commenting on the continuing progress showing by the agriculture sector, Senior Minister, Dr Timothy Harris commended the farmers for responding to the food security and nutrition issues facing the country. “Our farmers have performed. Our country collectively must give our farmers even greater support. I thank our farmers, their families, customers, well-wishers and supporters for all that has been achieved, always mindful of the Lord’s providence”.