Economy of Saint Kitts and Nevis

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Economy of Saint Kitts and Nevis

Currency	East Caribbean dollar (XCD) (2.7 per US$ fixed rate since 1976)
Fiscal year	1 January – 31 December
Trade organisations	CARICOM
Statistics
GDP	$1.134 billion (nominal, 2024)[1] $1.641 billion (PPP, 2018)[1]
GDP growth	1.8% (2016) 0.9% (2017) 4.6% (2018) 3.5% (2019e)[1]
GDP per capita	$17,513 (nominal, 2018 est.)[1] $29,323 (PPP, 2018 est.)[1]
GDP by sector	agriculture (3.5%), industry (25.8%), services (70.7%) (2001 est.)
Inflation (CPI)	−0.231% (2018)
Population below poverty line	NA
Labour force	18,172 (1995 est.)
Unemployment	4.5% (1997)
Main industries	tourism, cotton, salt, copra, clothing, footwear, beverages, light manufacturing, component assembly for export
External
Exports	$610 million (2018)
Export goods	Low-voltage protection equipment, broadcasting equipment, measuring instruments, electric motor parts, electrical transformers
Main export partners	United States 61.2%  India 7.09% (2022)[2]
Imports	$590 million (2018[update])
Import goods	Refined petroleum, jewelry, ships, cars, poultry meats, cement
Main import partners	United States 47.1%  Italy 8.65%  Turkey 6.32% (2022)[3]
Gross external debt	$314 million (2004[update])
Public finances
Revenues	N/A
Expenses	N/A
Economic aid	$3.52 million (recipient; 2005)
Credit rating	N/A
Foreign reserves	N/A
All values, unless otherwise stated, are in US dollars.

The economy of Saint Kitts and Nevis has traditionally depended on the growing and processing of sugar cane; decreasing world prices have hurt the industry in recent years. Tourism, export-oriented manufacturing, and offshore banking activity have assumed larger roles in Saint Kitts and Nevis. Most food is imported. The government has undertaken a program designed to revitalize the faltering sugar sector. It is also working to improve revenue collection in order to better fund social programs. In 1997, some leaders in Nevis were urging separation from Saint Kitts on the basis that Nevis was paying far more in taxes than it was receiving in government services, but the vote on secession failed in August 1998. In late September 1998, Hurricane Georges caused approximately $445 million in damages and limited GDP growth for the year.

The economy of St. Kitts and Nevis experienced strong growth for most of the 1990s but hurricanes in 1998 and 1999 contributed to a sharp slowdown. Real economic growth was 0.75% in 2002 after a decline of 4.3% in 2001. The economy experienced a mixed performance during 2002, with some sectors experiencing positive growth while others experienced varying levels of decline. The construction sector recorded a 4.51% decline, manufacturing and hotels and restaurants also recorded significant declines of 4.01 and 9.89% respectively, and sugar production fell by 5.1%. Significant new investment in tourism, including a 648-room Marriott hotel and convention center that opened in December 2002, as well as continued government efforts to diversify the economy, are expected to improve economic performance. Consumer prices have risen marginally over the past few years. The inflation rate was 3–4% for most of the 1990s.

St. Kitts and Nevis is a member of the Eastern Caribbean Currency Union (ECCU) The Eastern Caribbean Central Bank (ECCB) issues a common currency (the East Caribbean dollar) for all members of the ECCU. The ECCB also manages monetary policy, and regulates and supervises commercial banking activities in its member countries. There is an extensive parallel economy denominated in US$, which is the de facto currency for many business transactions.

St. Kitts is a member of the Eastern Caribbean Telecommunications (ECTEL) authority, which is developing the regulations to liberalize the telecommunications sector in the region by 2004.