Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review ST KITTS AND NEVIS

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

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