Economic and Financial Review - June 2019

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June 2019 Economic and Financial Review SAINT CHRISTOPHER (ST KITTS) AND NEVIS

A current account surplus of $246.7m was registered, compared with one of $129.3m in the comparable period of the prior year. Current revenue grew by 26.2 per cent ($120.2m) to $578.9m, with increases in non-tax revenue accounting for the major share of the growth. Non-tax revenue rose by 54.2 per cent ($111.0m) to $315.7m, primarily driven by an increase in Citizenship by Investment receipts. An improvement in tax revenue which grew by 3.6 per cent ($9.2m) to $263.2m due to a larger intake of direct taxes, also contributed to the overall growth in current revenue. Receipts from taxes on income and profits, which accounts for most of the direct taxes collections, rose by 11.6 per cent ($8.1m) to $78.1m and in large part was due to an increase in collections from corporation tax ($7.2m). The intake from taxes on property also improved marginally ($0.2m). The uptick in tax revenue was also supported by higher inflows from indirect tax revenues which is based on the consumers and businesses consumption and investment activities. Tax receipts on domestic goods and services improved by 1.5 per cent ($1.5m) to $102.0m, attributed to an increase in receipts from stamp duties ($2.4m), and unincorporated business levy ($1.3m) but tempered by a decline in

St Kitts & Nevis Consumer Price Index Percentage Change

2.0

1.0

0.0

-1.0

-2.0

-3.0

18 Q3

18 Q4

17 Q1

17 Q2

17 Q3

17 Q4

18 Q1

18 Q2

19 Q1

19 Q2

All Items Food & Non-Alchoholic Beverages Energy

Note: Energy includes Housing, Utilities, Gas & Fuels

Fiscal and Debt Developments The fiscal operations of the federal government, which were largely driven by the central government, resulted in an overall surplus of $191.5m in the first half of 2019, relative to a smaller surplus of $105.9m recorded in the corresponding period of 2018. Similarly, a primary surplus of $209.2m was realised, an improvement from one of $127.1m in the previous year. The surpluses were mainly influenced by an expansion on the current account, owing to an increase in current revenue and were partly used to service external debt and augment savings with commercial banks.

St Kitts & Nevis Public Finance

EC$M

-50.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0

15 Q4

16 Q1

16 Q2

16 Q3

16 Q4