The IMF forecasts moderate growth for St. Kitts and Nevis in 2025, attributed to renewable energy expansion and tourism recovery. As the region aims to lessen dependence on the CBI program, diversity in the economy is a key focus. Caribbean economic growth is expected to stabilize at around 2.4% for 2025.
The International Monetary Fund (IMF) is conducting an Article IV consultation in St. Kitts and Nevis this week to review the nation’s economic landscape. Following moderate growth in 2024, the IMF anticipates a continuation of this pattern into 2025. The IMF indicated this promising outlook is tied to the growth of renewable energy projects and a robust recovery in tourism, reaching pre-pandemic levels.
The Federation aims to mitigate its reliance on the Citizenship by Investment (CBI) program, historically contributing up to 65% of government revenue. As part of diversification strategies, the government is prioritizing renewable energy initiatives to foster a sustainable economic framework. The IMF’s forecast suggests moderate economic growth for the entire Caribbean region over the forthcoming years.
In its World Economic Outlook, the IMF projects steady economic growth across Latin America and the Caribbean. Real GDP growth for regions excluding Guyana and Haiti is estimated at 2.2% for 2023 and 2.4% for both 2024 and 2025. At a recent press conference, IMF’s Director of Communication, Julie Kozack, provided insights into trends affecting the region’s economies.
Kozack categorized Caribbean economies into two segments: tourism-dependent economies, which have seen slowed growth as tourism rebounds to previous levels, and commodity-exporting nations, which faced challenges in the energy sector but excelled in non-energy sectors due to favorable policies. Concerning inflation, Kozack noted that it has decreased significantly due to falling global commodity prices and the resolution of supply chain issues.
The IMF predicts moderate economic growth for St. Kitts and Nevis, driven by advancements in renewable energy and a recovering tourism sector. The region’s focus on diversification away from the CBI program marks a strategic shift towards sustainability. Overall, the Caribbean’s economic growth is forecasted to stabilize at approximately 2.4% in the coming years, reflecting a recovery trend post-pandemic.
Original Source: www.sknvibes.com
