Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review ST KITTS AND NEVIS

arrivals from the Caribbean. Increases were also recorded for visitors from the Caribbean, the second-largest market, of 1.5 per cent to 24,366. In contrast, stay-over arrivals from the UK, fell by (11.5 per cent) to 8,788, attributable to uncertainty associated with the anticipated Brexit.

Value added in the construction sector, is estimated to have risen at a decelerated rate of 0.8 per cent in 2018, compared with a 4.7 per cent expansion in 2017. The construction sector is the largest contributor to the economy accounting for 18.0 per cent of GDP. Buoyancy in construction was fuelled by continuing activity in the public and private sectors. This assessment was supported by increases in the quantity of sand produced by the government quarry of 9.3 per cent to 43,821.5 tonnes and stones of 70.6 per cent to 57,296.8 tonnes. Further evidence of an increase in activity in the sector was an 8.7 per cent increase in the volume of imported construction related materials another gauge of activity in the sector. Public sector investment rose, sustained by a 34.6 per cent increase in capital outlays over the review period. Activity in the public sector in St Kitts consisted of the completion of major work on Phase I of the island main road resurfacing project, accelerated work on the second cruise pier and resurfacing of the airport runway. Additionally, the East Line bus terminal was completed and major renovations to the Coast Guard headquarters were undertaken. In Nevis, capital investment was buoyed principally by continued work on the Treasury building in Charlestown, the resurfacing of roads and expansion work on

A decrease in stay-over arrivals of 1.9 per cent to 6,672 was also observed for the Canadian market. Cruise ship passenger arrivals which on average accounted for 89.9 per cent of total visitors over the last two years, rose by 8.1 per cent to 1,153,537 in 2018, compared with a 14.5 per cent increase in 2017. The outturn was consistent with a 3.1 per cent (16) increase in the number of cruise ship calls to 539 at cruise ports in St Kitts and Nevis. The number of excursionists rose by 6.5 per cent to 4,217, while visitors by yacht fell by 63.0 per cent to 2,494.

______________________________________________________________________________ 82 Eastern Caribbean Central Bank