Saturday, February 04, 2006
St. Kitts-Nevis economy rebounds according to IMF
Following the closure of the state owned sugar company after the July 2005 harvest, IMF officials expect fiscal balances and growth prospects to strengthen over the medium term. According to the report: “Burdened by high costs, the sugar industry had become a major contributor to the fiscal deficit, with annual losses on the order of 4 percent of GDP, and accumulated debt of about 30 percent of GDP. The situation was only set to worsen with the impending loss of preferential access to EU markets.”
St. Kitts Nevis was recently singled out in Finance and Development along with five other countries (three of which are also in the Caribbean basin) as particularly at risk from the loss of such trade preferences in general.