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2018 Annual Economic and Financial Review ST KITTS AND NEVIS
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Eastern Caribbean Central Bank
America, the Federation’s major trading
partner, is estimated to expand by 2.5 per cent
in 2019 and projected to decelerate to a
1.8 per cent expansion in 2020. Both
estimates, for the global economy and the
USA have been downgraded from previous
estimates in October 2019. The generally
positive outlook is tempered by the risk of an
escalation of trade tensions, further tightening
in global financial conditions and higher
commodity prices. In addition, the most
recent growth projections for the global
economy and the USA represent downward
revisions from the previous October 2019
estimates.
Increases in real sector activity will be fuelled
by developments in the construction sector,
led by public investment and supported by
ongoing activity in the private sector. Major
infrastructural projects in St Kitts include
intensified work on the second cruise pier,
Phase II of the resurfacing of the island main
and the completion of the resurfacing of the
airport runway. Phase III of the development
of the J N France Hospital, the construction of
the new Basseterre High School and an urban
housing development are other major projects
earmarked for commencement in 2019. In
Nevis, completion work will advance on the
new Treasury building and a water taxi pier.
Work also continues on the expansion of the
Alexander Hospital and the resurfacing of
roadways. In the private sector, construction
activity in St Kitts will be anchored by major
hospitality projects including; the Royal Mist
Hotel in Sea View Gardens, the Ramada
branded Heldens Condominium Resort and
Residences and the T-Loft, Pirates’ Nest
Resort to be managed by Radisson. The
commencement of a medical facility on the
South-East Peninsular during the first half of
2019 represents another major private sector
venture. In Nevis, work continues on the
construction of various villa developments,
and private residences. Going forward
construction activity could be further boosted
with the possible commencement of work on
the Wyndham Grand Resort at Pot Works in
the first quarter of 2019.
The performance of the tourism industry is
estimated to strengthen further during 2019,
based on intensified and targeted marketing
initiatives coupled with positive exposure
associated with the Park Hyatt brand and other
existing properties. The strong performance
of the cruise industry is also likely to be
enhanced by the completion of the second
cruise pier in time for the high season.
Additionally, the continued promotion of
sports tourism, particularly golf, in the