St. Kitts and Nevis: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for St. Kitts and Nevis
IMF Staff Country Reports, March 31, 2023
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- St. Kitts and Nevis: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for St. Kitts and Nevis
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Bibliographic details
- Published: March 31, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400239748.002
Economic performance and outlook
- GDP is estimated to have grown by 9 percent in 2022 after contracting 14.5 percent in 2020 and 0.9 percent in 2021.
- Return to the pre-pandemic activity level is expected by end-2024.
- Beyond end-2024, growth should converge toward its medium-term path.
- Risks to the outlook are tilted to the downside in the short term, with some upside potential in the medium term.
Fiscal stance and projections
- The budget is expected to be broadly balanced through 2025 and then go into deficits—predicated on current policies.
Key challenges and vulnerabilities
- The new government appointed following the 2022 general election faces important challenges.
- Concerns over CBI resources’ sustainability.
- Pressing need to invest in resilience to natural disasters.
- Addressing concerns related to the systemic bank should be a priority.
Policy priorities and recommendations
- Preserve the country’s legacy of fiscal prudence while managing constraints from CBI sustainability concerns.
- Prioritize and sequence policies adequately to reconcile fiscal prudence with investment needs for disaster resilience.
- Make addressing systemic bank-related concerns a priority in the policy agenda.
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- 1knaea2023002