Saint Kitts And Nevis Response Paper

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Saint Kitts and Nevis? economical and financial state has been affected by various factors positively and negatively. The nation has had its monetary issues in the past with stable economic development for four years. Yet, it has developed different sectors which have improved the economy. Further improvements will be needed, though, in order to maintain the guaranteed progress.

The Federation of Saint Kitts and Nevis is one of the quickest growing economies in the Eastern Caribbean with GDP of USD 765.9 million by 2013. It is a member of various organizations including the Eastern Caribbean Currency Union (ECCU) which requested in 2010, an arrangement with the surveillance of the IMF in a period of debt crisis following the Global …show more content…

Kitts and Nevis has gathered momentum, with real GDP growing at an estimated 3.8 percent in 2013 reflecting a pickup in tourism, a strong expansion in construction activity related to large Citizenship-by-Investment (CBI) inflows, a substantial increase in public sector investment, and impetus from the People Employment Program (PEP). Preliminary data for 2013 shows wages increased by 10 percent while employment expanded by 19 percent, mainly reflecting the impact of the PEP. Inflation declined to 0.4 percent at end-2013, and continues to be low, at 0.1 percent at end-March 2014 (y/y). The financial system is stable although the recovery in economic activity has not yet translated into increased lending to the private sector, as banks remain cautious. The external position continues to benefit from the recovery in tourism receipts and a strong increase in CBI inflows. These first quarter results suggest that the fiscal targets for the remainder of 2014 are achievable with continued policy efforts to contain government employment, and consequently, the public sector wage bill, as well as spending, while continuing to strengthen revenue collections. Progress was made on structural reforms. Public debt, which was at 164 percent of GDP in 2010, has been reduced to 104 percent of GDP at end-2013 and is on the path to reach the ECCU target of 60 percent of GDP by 2020. The fiscal balance went from a deficit of 7.8 percent of GDP to a surplus of 12.2 …show more content…

(n.d.). Retrieved March 10, 2016, from http://www.commonwealthofnations.org/sectors-st_kitts_and_nevis/business/industry_and_manufacturing/

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Press Release: IMF and St. Kitts and Nevis Organize Fourth Regional Caribbean Forum Focusing on ?Financing Growth?. (August 31). Retrieved March 12, 2016, from

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