Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review ST KITTS AND NEVIS

in short-term capital, in contrast to an outflow of $109.9m in 2017. Government transactions resulted in a reduction in the net outflow of funds to $23.7m, mainly attributable to a lower net amortisation position. This development largely mirrored higher disbursements of $1.7m compared with $0.9m in 2017, while external principal repayments were relatively unchanged at $25.5m, compared with payments of $25.2m in the previous year. The outlook for the economy of St Kitts and Nevis appears favourable for 2019, underscored by a 3.1 per cent growth projection. This assessment is, however, partly contingent on positive developments for the Federation’s major trading partners; the USA, the UK and the European Union, as forecasted by the International Monetary Fund (IMF). According to the January 2019 update of the International Monetary Fund’s World Economic Outlook (WEO) the global economy is estimated to expand by 3.5 per cent in 2019 and to accelerate slightly to a 3.6 rate in 2020. The United States of Outlook

The value of imports (CIF) increased by 7.1 per cent to $893.0m, mainly influenced by increases in the value of machinery and transport equipment; manufactured goods; food and live animals and chemicals and related products. The value of total exports was $148.7m, compared with $135.8m recorded in 2017, reflective of an increase in the value of machinery and transport equipment; live food and animals and beverages and tobacco exported. Domestic exports expanded by 11.1 per cent to $118.2m, while re-exports rose by 3.8 per cent to $30.4m. The volume of trade in goods (both exports and imports) expanded by 21.5 per cent to 520,896 tonnes. Gross travel receipts are estimated to have risen by 15.2 per cent to $496.4m in 2018 compared with a 15.0 per cent increase in the previous year. Commercial banks’ transactions resulted in a net inflow of $17.3m

______________________________________________________________________________ 90 Eastern Caribbean Central Bank