by Kevon Browne
St. Kitts and Nevis (WINN): The International Monetary Fund (IMF) has released another report with updates on projections for the Caribbean region and for St. Kitts and Nevis.
In 2022, Gross Domestic Product (GDP) for the Caribbean grew by 13.4 per cent, with projections for 2023 and 2024 being 9.9 per cent and 14.1 per cent, respectively.
In the Eastern Caribbean Currency Union (ECCU) specifically, 2022 saw growth of 9.1 per cent, and the IMF is projecting in 2023 growth to be 4.5 per cent and in 2024 4.0 per cent.
Focusing on St Kitts and Nevis, according to the IMF projections, the Federation will record economic growth of 4.5 per cent in 2023, the projections given in their earlier report. However, growth is expected to retract to 3.8 per cent in 2024.
The IMF said the Federation’s economy, while on the regional frontier, faced headwinds in the last couple of years, suggesting a need to improve the competitiveness of the labour market that currently has stagnant labour productivity and disconnection between wage and labour productivity growth across sectors.
The fix? – “Strengthening the labour market holds the key to strengthening job opportunities, restoring competitiveness, and supporting sustainable growth,” with more investment in value-added services, developing job opportunities in more productive sectors ( fishing, mining, education, health, financial intermediary, and real estate services), and improving the efficiency of the public sector.
Across the region, growth is similar in other territories. St Vincent and the Grenadines is predicted to have 6 per cent economic growth in 2023, retracting to five per cent in 2024.
Antigua and Barbuda will grow by 5.5 per cent this year and slightly decline in 2024 to 5.4 per cent. Dominica and Barbados are projected to record economic growth of 4.9 per cent for 2023, retracting to 4.7 and 3.9 per cent, respectively, in 2024.
However, the country with the most significant growth projection is Guyana. According to the IMF report, Guyana, now seen as an oil-producing country, is expected to see economic growth of 37.2 per cent in 2023, with an increase to 45.3 per cent in 2024.
See the reports here:
St. Kitts and Nevis: Selected Issues
IMF Executive Board Concludes 2023 Article IV Consultation with St. Kitts and Nevis
