Annual Economic and Financial Review -December 2018

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Eastern Caribbean Central Bank

S T K I T T S A N D N E V I S

Overview

Available data indicated that the economy

of St Kitts and Nevis expanded at an

accelerated rate in 2018 compared with the

performance in the previous year.

Real

GDP is estimated to have risen by

3.0 per cent

in the period under review,

compared with an expansion of 1.2 per cent in

the previous year.

The economic outturn

reflected expansions in the major economic

drivers mainly; the hotels and restaurants,

construction and manufacturing sectors with

positive spinoffs on the wholesale and retail

and transport, storage and communications

In keeping with international standards, the ECCB updated the terminology used to describe economic activity in the

ECCU. Accordingly, the Bank now reports real change in the economy using real Gross Domestic Product (GDP) at

market prices and not Gross Value Added (GVA) at basic prices as used in previous reports of the Annual Economic

and Financial Review (AEFR). However, GVA will remain applicable for output by sector.

sectors. Consumer prices fell by 0.8 per cent,

on an end of period basis. The fiscal

operations of the Federal Government

generated a larger overall surplus, driven by a

surge in non-tax revenue supplemented by

higher tax revenue. The total outstanding

public sector debt rose during the period under

review. In the banking system, declines were

recorded for the principal monetary

aggregates including; monetary liabilities,

domestic credit and net foreign assets.

Liquidity in the commercial banking system

rose.

The economy of St Kitts and Nevis is

expected to expand at an accelerated pace