Economic and Financial Review June 2021 - SAINT CHRISTOPHER AND NEVIS

7.1 per cent increase in private sector claims, reflecting an uptick in both household (8.9 per cent) and business (4.1 per cent) claims, also contributed to the growth in domestic claims (see figure 7).

Figure 7 - Saint Christopher (St Kitts) and Nevis Domestic Credit Percentage Change (June)

The ratio of nonperforming loans to gross loans in the banking sector stood at 24.4 per cent, 19.4 percentage points above the ECCB’s tolerable limit and 2.2 percentage points higher than the average ratio over the prior five years. Notwithstanding, the Federation’s banking system remained liquid at the end of June 2021.

External Trade

The merchandise trade deficit narrowed by 25.1 per cent to $232.4m during the first half of 2021, the lowest trade deficit recorded in the past five years. This development was mainly driven by a contraction in import payments, partly associated with the decline in household and business incomes. An uptick in export receipts also contributed to the narrowing of the trade balance (see figure 8). Consistent with the decline in visitor arrivals, gross travel receipts are estimated to have decreased by 82.7 per cent to $20.3m in the first six months of 2021.

Figure 8 - Saint Christopher (St Kitts) and Nevis Visible Trade (June)

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