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2018 Annual Economic and Financial Review ST KITTS AND NEVIS
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Eastern Caribbean Central Bank
(82.7 per cent). The decline in crops was
moderated primarily by a 14.1 per cent
increases in the output of tomato and a
doubling in the output of cabbage.
The expansionary results in the hotels and
restaurants, construction, manufacturing and
agricultural sectors, generated positive
externalities which favourably impacted a
number of related sectors. Consequently,
higher value added contributions were also
estimated for the wholesale and retail
(11.1 per cent); transport, storage and
communications (4.2 per cent) and real estate
renting and business activities sectors
(2.2 per cent), which together account for
30.8 per cent of GDP in 2018.
Prices, Wages and Employment
The consumer price index fell by 0.8 per
cent in 2018 in contrast to a 0.8 per cent
increase registered in 2017.
The decrease in
consumer prices reflected a decline in the
majority of the sub-indices with the highest
weight in the goods and services basket. The
most significant contributors to this
development were decreases in the sub-indices
for transport (2.7 per cent), housing utilities,
gas and fuels (1.5 per cent) and education
(7.3 per cent). Falling prices were also
recorded for the hotels and restaurants,
recreation and culture and communication
sub-indices of 1.2 per cent, 1.8 per cent and
0.4 per cent respectively. The overall
decrease in prices was tempered by higher
prices for food and non-alcoholic beverages
(1.8 per cent), household furnishings and
maintenance (1.3 per cent) and alcoholic
beverages,
tobacco
and
narcotics
(1.9 per cent). When analysed by island, the
decline in prices for the Federation was
largely, influenced by reduced average prices
(2.8 per cent) in Nevis tempered by higher
prices in St Kitts (0.3 per cent).
Official data on wages and unemployment
levels are unavailable for the review period,
however, a number of ongoing policy
measures would have positively impacted the
labour market. Policy interventions by the
authorities include; the Skills Training and
Empowerment Programme (STEP), the
awarding of an additional month’s salary to
public servants for a third consecutive year
and the payment of $500.0 to qualifying
households earning less than $3,000.0
per month under the Poverty Alleviation
Programme. The rate of unemployment is
likely to have declined attributable to the
creation of jobs associated with developments