St. Kitts and Nevis: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for St. Kitts and Nevis

International Monetary Fund

No 2025/107, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2025 Article IV Consultation discusses that following the post-pandemic rebound, St. Kitts and Nevis’ economy is facing challenges. Real gross domestic product growth moderated to 1.5 percent in 2024, reflecting lower contributions from tourism and government services, while inflation eased to 1 percent. The fiscal outlook has notably deteriorated against the background of structurally lower Citizenship-By-Investment (CBI) revenues, and the current account deficit has widened. The authorities have made efforts to tackle these challenges. These include partially containing current expenditure, strengthening the CBI framework, preparing for the establishment of a Sovereign Wealth Fund, and planning pension fund reforms, as well as making progress in improving financial stability. These efforts are expected to continue. The outlook and risks faced by St. Kitts and Nevis’s economy require a multipronged approach to address low growth and fiscal sustainability issues while maintaining financial stability and a sound external position. It is recommended to boost sustainable, inclusive, and resilient growth by undertaking structural reforms, enhancing labor skills, and accelerating the renewable energy transition, which would also foster private sector-led growth.

Keywords: policy uncertainty; financing cost; staff appraisal; CBI revenue; Mission LTX; Current spending; Credit; Fiscal consolidation; Caribbean; Global (search for similar items in EconPapers)
Pages: 80
Date: 2025-05-13
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