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2018 Annual Economic and Financial Review ST KITTS AND NEVIS
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Eastern Caribbean Central Bank
Canadian and UK markets, could boost visitor
arrivals from those markets. The recent
announcement of an additional American
Airlines flight out of Dallas Forth Worth,
Texas commencing on 25 May to
17 August 2019, complements another recent
airlift initiative by Sun Country Airlines which
commenced services in December 2018 and
will continue until 20 April, 2019. These
developments add to pre-existing airlift
services by United Airlines, American
Airlines services out of Miami and New York,
USA; Delta Airlines and winter service from
Air Canada Rouge. The hosting of events
such as the annual St Kitts Music Festival and
matches for the Hero Caribbean Premier
League T20 Cricket tournament in August will
help to boost visitor arrivals during the
traditional “offseason”. The optimism
associated with prospects for stay-over
visitors is also echoed by the cruise sub-
sector, in line with increased berthing capacity
afforded by the anticipated completion of the
second cruise pier. On balance, the number
of total visitors is projected to increase, driven
by higher stay-over and cruise ship passenger
arrivals. Additionally, the combination of
developments in both the construction and the
hotels and restaurants sectors will generate
positive spin-offs for the wholesale and retail
trade; transport, storage and communications
and real estate, renting and business activities
sectors. Prospects for the manufacturing
sector, particularly in the area of electronics,
are cautiously optimistic, tempered by the
recent announcement of the imminent closure
of a longstanding manufacturing plant in
March 2019. Inflationary pressures are
anticipated to remain moderate but to nudge
up in tandem with buoyant economic activity
and possible increases in international energy
prices.
The outlook for the fiscal accounts points to
some moderation in the fiscal performance.
The large overall surpluses recorded in 2018
are estimated to narrow in 2019 consistent
with a budgeted decline in CBI receipts an
increase in capital and current expenditure.
The rate of increase in capital and current
expenditure is estimated to outpace that of
current revenue, further contributing to
smaller current and overall balances.
Pressures are likely to emanate from capital
expenditure and outlays on goods and services
as work on several major capital projects
accelerates.
The deficit on the current account of the
balance of payments is projected to widen,
consistent with increases in value added for
construction and tourism services with