{
  "title": "IMF Executive Board Concludes 2026 Article IV Consultation with St. Kitts and Nevis",
  "publication": "IMF News, May 7, 2026",
  "sourceUrl": "https://www.imf.org/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation",
  "canonical": "https://www.imf.org/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation",
  "overlayPath": "/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation/index.md",
  "summary": "In concluding the 2026 Article IV consultation with St. Kitts and Nevis, Executive Directors endorsed staff’s appraisal as follows. The authorities have consented to the publication of the Staff Report prepared for this consultation.",
  "publishDate": "2026-05-07",
  "sections": [
    {
      "heading": "Executive summary and staff appraisal",
      "content": "- Executive Directors endorsed staff’s appraisal. The authorities consented to publication of the Staff Report prepared for the consultation.\n- Economic growth slowed in 2025 but is expected to rebound to 2 percent (y/y) in 2026 and strengthen over the medium term.\n- Inflation is expected to rise to 2.2 percent in 2026 before stabilizing over the medium term.\n- The current account deficit was 14.6 percent of GDP in 2025.\n- With Citizenship-by-Investment (CBI) revenue declining further, the overall fiscal deficit widened to 11.7 percent of GDP in 2025; public debt edged up closer to the 60 percent of GDP regional benchmark; government deposits declined further.\n- Debt sustainability is maintained, but contingent liabilities from public banks and the Social Security Fund (SSF) pose significant risks.\n- Geothermal and solar energy projects are advancing steadily."
    },
    {
      "heading": "Growth, inflation, and drivers",
      "content": "- Projected 2026 growth: 2 percent (y/y), supported by construction, agriculture, renewable energy projects, and continued expansion of tourism activities.\n- Inflation projection: 2.2 percent in 2026, driven by higher global energy and food prices.\n- External shock sensitivity: Elevated oil prices associated with the war in the Middle East would weigh on the economy through impacts on tourism and transportation sectors."
    },
    {
      "heading": "Fiscal developments and outlook",
      "content": "- 2025 outcomes:\n  - Overall fiscal deficit: -11.7 percent of GDP.\n  - Total expenditure and net lending: 42.4 percent of GDP.\n  - Total revenue and grants: 30.7 percent of GDP.\n  - CBI fees: 6.0 percent of GDP in 2025 (declining).\n  - General government deposits: 7.2 percent of GDP in 2025 (declining).\n  - Total public debt (end-of-period): 58.4 percent of GDP in 2025.\n- Near- and medium-term outlook:\n  - Persistently low CBI revenues expected to keep deficits elevated in 2026 and over the medium term; public debt projected to continue rising.\n  - Under a moderately frontloaded consolidation scenario combining expenditure rationalization and revenue mobilization, public debt would stabilize at the regional benchmark by 2031 and higher government deposits would help rebuild buffers.\n- Fiscal policy recommendations:\n  - Continue fiscal consolidation to stabilize debt, rebuild buffers, and reduce vulnerability to shocks.\n  - Further rationalize current expenditure, including streamlining goods and services spending.\n  - Implement well-targeted and timebound measures to mitigate impact of higher oil prices.\n  - Increase tax revenue by rolling back Covid-era concessions, broadening the VAT base, strengthening property taxation, increasing excises, and improving tax administration.\n  - Formally adopt fiscal rules anchored by the regional debt benchmark to underpin consolidation, reduce reliance on CBI revenues, mitigate fiscal procyclicality, and strengthen credibility.\n  - Implement the planned Sovereign Wealth Resilience Fund in line with IMF TA to manage CBI revenue volatility, enhance disaster resilience, and support long‑term fiscal sustainability.\n  - Proceed without delay with parametric reforms to the SSF to prevent reserve depletion by 2040."
    },
    {
      "heading": "External sector and monetary indicators",
      "content": "- External current account balance: -14.6 percent of GDP in 2025; projected -15.4 percent in 2026 and -14.2 percent in 2027.\n- Trade balance: -34.1 percent of GDP in 2025; projected -36.4 percent in 2026 and -35.9 percent in 2027.\n- Net international reserves, end-of-period (memorandum item): 269.0 (2025), 267.3 (2026), 265.5 (2027) [units as presented in source].\n- Broad money change: 10.2 percent in 2025; projected 8.2 percent in 2026.\n- Change in net foreign assets: -2.3 (2025), -2.0 (2026), -1.8 (2027) [units as presented in source]."
    },
    {
      "heading": "Financial sector assessment",
      "content": "- Banking system: broadly stable; capital positions strengthened, NPL ratios have continued to decline, and credit growth has remained robust.\n- Remaining vulnerabilities: exposure of banks’ investment portfolios, legacy NPLs, contingent liabilities from public banks, and risks linked to the SSF.\n- Financial sector policy recommendations:\n  - Resolve legacy NPLs and strengthen provisioning.\n  - Further de‑risk investment portfolios.\n  - Implement comprehensive reform of the Development Bank to safeguard financial and fiscal stability.\n  - Strengthen the FSRC’s oversight framework for the non-banking sector."
    },
    {
      "heading": "Risks and structural priorities",
      "content": "- Downside risks to near-term growth: heightened global policy uncertainty (including related to CBI programs), geopolitical tensions, volatility in commodity and financial markets, and persistently high oil prices.\n- Upside potential: a successful energy transition could strengthen medium-term growth.\n- Domestic risks: financial-sector weaknesses and exposure to natural disasters could pose fiscal risks.\n- Structural reform priorities:\n  - Accelerate renewable energy projects (geothermal and solar).\n  - Enhance the investment climate.\n  - Address labor-market skills mismatches.\n  - Continue efforts to improve data adequacy."
    },
    {
      "heading": "Key selected economic indicators (annual unless otherwise specified) — select series 2021–2027",
      "content": "- Real GDP (market prices): 0.6 (2021); 10.5 (2022); 4.6 (2023); 1.7 (2024); 1.5 (2025); 2.0 (2026); 2.5 (2027).\n- Real GDP (factor cost): 1.9 (2021); 8.0 (2022); 2.1 (2023); 2.3 (2024); (2025 not reported in table); (2026 and 2027 not reported in table).\n- Consumer prices, period average: 3.8 (2021); 1.6 (2022); 2.2 (2023); (2024–2027 not fully listed aside from 2026 projection in text).\n- Broad money: 8.9 (2021); 3.7 (2022); -1.9 (2023); 16.0 (2024); 10.2 (2025); 8.2 (2026).\n- Credit to private sector: 7.7 (2021); 5.9 (2022); 5.1 (2023); 10.8 (2024); 10.0 (2025); 6.5 (2026); 5.3 (2027).\n- Total revenue and grants (percent of GDP): 47.5 (2021); 46.1 (2022); 43.9 (2023); 33.1 (2024); 30.7 (2025); 32.2 (2026); 32.7 (2027).\n- o/w Tax revenue (percent of GDP): 19.4 (2021); 18.8 (2022); 19.7 (2023); 19.9 (2024); 19.5 (2025); 20.2 (2026).\n- o/w CBI fees (percent of GDP): 23.8 (2021); 25.8 (2022); 22.2 (2023); 8.6 (2024); 6.0 (2025).\n- Total expenditure and net lending (percent of GDP): 42.0 (2021); 50.4 (2022); 43.7 (2023); 44.4 (2024); 42.4 (2025); 40.8 (2026); 40.2 (2027).\n- Overall balance (percent of GDP): 5.5 (2021); -4.2 (2022); 0.2 (2023); -11.3 (2024); -11.7 (2025); -8.7 (2026); -7.5 (2027).\n- Total public debt (end-of-period, percent of GDP): 73.0 (2021); 64.5 (2022); 60.0 (2023); 58.1 (2024); 58.4 (2025); 64.0 (2026); 68.7 (2027).\n- General government deposits (percent of GDP): 31.0 (2021); 22.0 (2022); 20.8 (2023); 11.0 (2024); 7.2 (2025); 3.0 (2026); 2.9 (2027).\n- External current account balance (percent of GDP): -3.4 (2021); -10.8 (2022); -13.7 (2023); -13.0 (2024); -14.6 (2025); -15.4 (2026); -14.2 (2027).\n- Net international reserves, end-of-period (memorandum): 312.8 (2021); 270.3 (2022); 262.4 (2023); 270.7 (2024); 269.0 (2025); 267.3 (2026); 265.5 (2027).\n- Nominal GDP at market prices (in millions of EC$): 2,277 (2021); 2,599 (2022); 2,793 (2023); 2,836 (2024); 2,921 (2025); 3,085 (2026); 3,233 (2027).\n\nIMF press release: \"IMF Executive Board Concludes 2026 Article IV Consultation with St. Kitts and Nevis\" (May 7, 2026).\n\n---\n\n\n References\n\n- St. Kitts and Nevis and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/St. Kitts and Nevis\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation/index.md)",
    "[Structured JSON version](/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation/index.json)",
    "[Bundle manifest](/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation/bundle-manifest.json)",
    "Published: May 7, 2026",
    "Executive Directors endorsed staff’s appraisal. The authorities consented to publication of the Staff Report prepared for the consultation.",
    "Economic growth slowed in 2025 but is expected to rebound to 2 percent (y/y) in 2026 and strengthen over the medium term.",
    "Inflation is expected to rise to 2.2 percent in 2026 before stabilizing over the medium term.",
    "The current account deficit was 14.6 percent of GDP in 2025.",
    "With Citizenship-by-Investment (CBI) revenue declining further, the overall fiscal deficit widened to 11.7 percent of GDP in 2025; public debt edged up closer to the 60 percent of GDP regional benchmark; government deposits declined further.",
    "Debt sustainability is maintained, but contingent liabilities from public banks and the Social Security Fund (SSF) pose significant risks.",
    "Geothermal and solar energy projects are advancing steadily.",
    "Projected 2026 growth: 2 percent (y/y), supported by construction, agriculture, renewable energy projects, and continued expansion of tourism activities.",
    "Inflation projection: 2.2 percent in 2026, driven by higher global energy and food prices.",
    "External shock sensitivity: Elevated oil prices associated with the war in the Middle East would weigh on the economy through impacts on tourism and transportation sectors.",
    "2025 outcomes:",
    "Near- and medium-term outlook:",
    "Fiscal policy recommendations:",
    "External current account balance: -14.6 percent of GDP in 2025; projected -15.4 percent in 2026 and -14.2 percent in 2027.",
    "Trade balance: -34.1 percent of GDP in 2025; projected -36.4 percent in 2026 and -35.9 percent in 2027.",
    "Net international reserves, end-of-period (memorandum item): 269.0 (2025), 267.3 (2026), 265.5 (2027) [units as presented in source].",
    "Broad money change: 10.2 percent in 2025; projected 8.2 percent in 2026.",
    "Change in net foreign assets: -2.3 (2025), -2.0 (2026), -1.8 (2027) [units as presented in source].",
    "Banking system: broadly stable; capital positions strengthened, NPL ratios have continued to decline, and credit growth has remained robust.",
    "Remaining vulnerabilities: exposure of banks’ investment portfolios, legacy NPLs, contingent liabilities from public banks, and risks linked to the SSF.",
    "Financial sector policy recommendations:",
    "Downside risks to near-term growth: heightened global policy uncertainty (including related to CBI programs), geopolitical tensions, volatility in commodity and financial markets, and persistently high oil prices.",
    "Upside potential: a successful energy transition could strengthen medium-term growth.",
    "Domestic risks: financial-sector weaknesses and exposure to natural disasters could pose fiscal risks.",
    "Structural reform priorities:",
    "Real GDP (market prices): 0.6 (2021); 10.5 (2022); 4.6 (2023); 1.7 (2024); 1.5 (2025); 2.0 (2026); 2.5 (2027).",
    "Real GDP (factor cost): 1.9 (2021); 8.0 (2022); 2.1 (2023); 2.3 (2024); (2025 not reported in table); (2026 and 2027 not reported in table).",
    "Consumer prices, period average: 3.8 (2021); 1.6 (2022); 2.2 (2023); (2024–2027 not fully listed aside from 2026 projection in text).",
    "Broad money: 8.9 (2021); 3.7 (2022); -1.9 (2023); 16.0 (2024); 10.2 (2025); 8.2 (2026).",
    "Credit to private sector: 7.7 (2021); 5.9 (2022); 5.1 (2023); 10.8 (2024); 10.0 (2025); 6.5 (2026); 5.3 (2027).",
    "Total revenue and grants (percent of GDP): 47.5 (2021); 46.1 (2022); 43.9 (2023); 33.1 (2024); 30.7 (2025); 32.2 (2026); 32.7 (2027).",
    "o/w Tax revenue (percent of GDP): 19.4 (2021); 18.8 (2022); 19.7 (2023); 19.9 (2024); 19.5 (2025); 20.2 (2026).",
    "o/w CBI fees (percent of GDP): 23.8 (2021); 25.8 (2022); 22.2 (2023); 8.6 (2024); 6.0 (2025).",
    "Total expenditure and net lending (percent of GDP): 42.0 (2021); 50.4 (2022); 43.7 (2023); 44.4 (2024); 42.4 (2025); 40.8 (2026); 40.2 (2027).",
    "Overall balance (percent of GDP): 5.5 (2021); -4.2 (2022); 0.2 (2023); -11.3 (2024); -11.7 (2025); -8.7 (2026); -7.5 (2027).",
    "Total public debt (end-of-period, percent of GDP): 73.0 (2021); 64.5 (2022); 60.0 (2023); 58.1 (2024); 58.4 (2025); 64.0 (2026); 68.7 (2027).",
    "General government deposits (percent of GDP): 31.0 (2021); 22.0 (2022); 20.8 (2023); 11.0 (2024); 7.2 (2025); 3.0 (2026); 2.9 (2027).",
    "External current account balance (percent of GDP): -3.4 (2021); -10.8 (2022); -13.7 (2023); -13.0 (2024); -14.6 (2025); -15.4 (2026); -14.2 (2027).",
    "Net international reserves, end-of-period (memorandum): 312.8 (2021); 270.3 (2022); 262.4 (2023); 270.7 (2024); 269.0 (2025); 267.3 (2026); 265.5 (2027).",
    "Nominal GDP at market prices (in millions of EC$): 2,277 (2021); 2,599 (2022); 2,793 (2023); 2,836 (2024); 2,921 (2025); 3,085 (2026); 3,233 (2027).",
    "[St. Kitts and Nevis and the IMF](http://www.imf.org/external/country/KNA/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/St. Kitts and Nevis](https://www.imf.org/en/countries/kna)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation/index.md",
    "json": "/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation/index.json",
    "bundleManifest": "/en/news/articles/2026/05/07/pr26143-st-kitts-and-nevis-imf-executive-board-concludes-2026-article-iv-consultation/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T04:38:48.164Z"
}