This was projected by Prime Minister and Minister of Finance of St. Kitts and Nevis, during theBudget Session at Government Headquarters, where he said that the economy rebounded in the year 2013, recording a positive growth of 3.8%.
“In its ninth and final review of the Stand-By Arrangement, the IMF stated, St. Kitts and Nevis has made substantial strides under its home-grown economic programme… Despite the challenges, significant reforms were implemented and considerable progress was achieved,” Douglas said.
Dr. Dpuglas added that the report highlighted that the economic performance of St. Kitts and Nevis was as a result of “robust labour market developments fuelled by the People Employment Programme (PEP), and stronger construction performance related to both Citizenship By Investment (CBI) inflows” and a substantial increase in public sector capital spending.
“This momentum of growth has continued into 2014 as preliminary estimates have indicated that as of June the Gross Domestic Product (GDP) has increased by 4.4%. In addition, by all reports there are positive signs that the economy will achieve a growth rate of 4.6% by the end of the year,” Douglas said.
PM Douglas said that vital actions resulted in the “rebound and maintenance” of resilience in the economy as “creative and innovative” initiatives facilitated the stimulation of economic activity in key sectors; as well as increased employment for residents.
“This has allowed St. Kitts and Nevis to emerge stronger, pioneering new approaches which are now being emulated by other nations within and beyond the Caribbean. Our efforts continue to be lauded the world over by reputable organizations,” PM Douglas noted.
The Prime Minister further stated that the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) in its 2014 report highlighted the Federation as a leader in the Caribbean in regards to attracting Foreign Direct Investment (FDI).
He added that the FDI increased in 2013 by 19.0%, totaling US$112 million when compared to US$94 million in 2012. He added that the federation also leads the Caribbean recording US$2,090 per capita in FDI inflows.
“On a period to period basis, the rate of inflation in 2013 was recorded at 0.7% compared to 1.4% recorded in 2012. This outturn was as a result of the stabilization in domestic prices and the lower international import prices due to lower fuel prices,” Douglas said.