St. Kitts and Nevis: 2024 Article IV Consultation-Press Release and Staff Report

International Monetary Fund

No 2024/126, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2024 Article IV Consultation with St. Kitts and Nevis discusses that despite a continued strong tourism performance, growth fell to 3.4 percent in 2023 due to delays in public and private sector investment projects. The economic outlook is positive thanks to the renewable energy projects that would significantly reshape the economy. A privately funded utility-scale solar and battery storage project is expected to be completed in 2025 and a geothermal project in Nevis is at the planning stage. Debt and cash management could be improved and the social security fund requires urgent reform. Maintaining a large amount of short-term debt can be costly, particularly when fiscal buffers are available. The 2023 external position is assessed to be weaker than the level implied by medium-term fundamentals and desirable policies. The current account deficit is projected to fall to over the medium term supported by lower fossil fuel imports. International reserves are adequate.

Keywords: CBI revenue; GDP estimate; ECCB website; visitor expenditure survey; advance CBI legislation; ECCB member country; CBI program; Renewable energy; Current spending; Nonperforming loans; Capital spending; Caribbean; Global (search for similar items in EconPapers)
Pages: 61
Date: 2024-05-15
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