Economic and Financial Review - June 2019

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

Gross travel receipts are estimated to have risen by 23.6 per cent to $340.4m in the first six months of 2019, attributable to an expansion in stay-over visitors. Commercial banks’ transactions resulted in a net outflow of $311.4m in short-term capital, in comparison to an outflow of $123.3m in the corresponding period in 2018. In the public sector, external loan disbursements to the central government in the first half of 2019 totalled $3.6m compared with $0.1m in the corresponding period of the previous year. On the other hand, external principal repayments amounted to $10.2m, down from $11.8m in 2018. These transactions led to a net outflow of $6.6m compared with one of $11.7m in the same period of 2018. Outlook Economic activity in Saint Christopher (St. Kitts) and Nevis is expected to continue on its expansionary path for the remainder of 2019, as activity in the tourism industry and construction sector remain buoyant. Activity in the construction sector is expected to remain robust as capital projects in the public sector advance. These projects include the continuation of the upgrade of the island main road, the old road bay rehabilitation project and airport

rehabilitation works in St Kitts and ongoing road works and the continued expansion of the hospital in Nevis.

The increase in economic activity is also anticipated to be supported by a strong performance in the tourism industry, partially driven by ongoing marketing efforts and increased airlift from additional flights from New York and Toronto to St Kitts in the upcoming peak season. Additionally, the enhancement of the destinations’ tourism product through the anticipated opening of the new Koi Resort and Residences and the reopening of the Four Seasons Resort in the second half of 2019 could also provide an additional boost to the industry. The hosting of Hero Caribbean Premier League T20 Cricket games in September should also enhance stayover arrivals in that month, particularly from the Caribbean market. The scheduled completion and commissioning of the second cruise pier, in time for the commencement of the cruise season in 2019, is also expected to enhance the cruise subsector. Performance in the agricultural sector is also expected to boost overall economic activity as crop production continues to recover from destruction caused by hurricanes Irma

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Eastern Caribbean Central Bank