St. Kitts and Nevis economy grew by 6.4 percent, overall balance of payments recorded a EC$36 million surplus
by The Communications Unit
Posted: Dec 22, 2005 15:00 UTC
BASSETERRE, ST. KITTS (CUOPM) St. Kitts and Nevis economy recorded an impressive growth rate of over six percent in 2004, Prime Minister and Minister of Finance, the Hon. Dr. Denzil L. Douglas has announced.
He also told the Federal Assembly that the overall balance of payments position of St. Kitts and Nevis recorded a surplus of $36.9 million or 3.3 percent of GDP.Following a difficult two-year period in 2002 and 2003 when economic activity was relatively sluggish, St. Kitts and Nevis posted an impressive growth rate of 6.4 percent in 2004, said Dr. Douglas, who disclosed that the increase emanated from increased activities in the areas of tourism, transport, non-sugar agriculture, manufacturing and construction.
The Tourism Sector, in particular, recorded very impressive growth in 2004 as a result of the substantial increases in tourist arrivals that was facilitated by the increase in the stock of hotel rooms and the resulting increased airlift into our Federation said the Prime Minister and Minister of Finance, who added that the performance of the Tourist Industry is reflected in the GDP statistics by a mammoth 32.6 percent increase in the output of the Hotel and Restaurant sector.
Dr. Douglas described the performance as commendable by any standard but especially when viewed against the backdrop of the relatively high public sector debt, the uncertain global economic climate, war and terrorism around the globe, and rising oil prices.Indeed, our growth rate has eclipsed the average growth rate of 3.9 percent or the Eastern Caribbean Currency Union as well as the average of 5.6 percent for developing countries in the Western Hemisphere and the average of 3.3 percent for the industrialised countries. In the Caribbean as a whole, only Trinidad and Tobago, with its massive windfall from increased energy prices managed to surpass the very remarkable growth rate achieved by our Federation, said Prime Minister.
Dr. Douglas said what is even more remarkable is that this exceptional level of economic growth was not accompanied by a massive escalation in consumer prices. During 2004, the rate of inflation as measured by the movement in retail prices remained relatively subdued at 2.3 percent for the year. Moreover, a comparison of retail prices in the first six-months of this year with retail prices in the first six months of last year reveals that the inflation rate has remained stable at 2.2 percent per annum, said Prime Minister Douglas.
He said that the Balance of Payments statistics, which records the inflows and outflows of funds arising out of transactions between the Federation of St. Kitts and Nevis and the rest of the world, show that the Federations current account position improved quite remarkably relative to 2003. The current account deficit narrowed to $236.4 million or 21.3 percent of GDP in 2004 from $312.5 million or 31.3 percent of GDP in 2003.
This significant improvement was due mainly to higher tourism receipts, which grew by 39 percent to reach $282.9 million in 2004. On the other hand, the merchandise trade deficit expanded slightly by 1.2 percent, the St. Kitts and Nevis leader disclosed.
Prime Minister said that during 2004, several major investment projects were completed and as a result significantly lower inflows of foreign direct investment were recorded, and as such, the surplus on the Financial and Capital Account fell by 10 percent to $267.6 million or 24.1 percent of GDP. The overall balance of payments position of St. Kitts and Nevis recorded a surplus of $36.9 million or 3.3 percent of GDP in contrast to the deficit of $2.6 million or 0.3 percent of GDP that was recorded in 2003.
by The Communications Unit
Posted: Dec 22, 2005 15:00 UTC
BASSETERRE, ST. KITTS (CUOPM) St. Kitts and Nevis economy recorded an impressive growth rate of over six percent in 2004, Prime Minister and Minister of Finance, the Hon. Dr. Denzil L. Douglas has announced.
He also told the Federal Assembly that the overall balance of payments position of St. Kitts and Nevis recorded a surplus of $36.9 million or 3.3 percent of GDP.Following a difficult two-year period in 2002 and 2003 when economic activity was relatively sluggish, St. Kitts and Nevis posted an impressive growth rate of 6.4 percent in 2004, said Dr. Douglas, who disclosed that the increase emanated from increased activities in the areas of tourism, transport, non-sugar agriculture, manufacturing and construction.
The Tourism Sector, in particular, recorded very impressive growth in 2004 as a result of the substantial increases in tourist arrivals that was facilitated by the increase in the stock of hotel rooms and the resulting increased airlift into our Federation said the Prime Minister and Minister of Finance, who added that the performance of the Tourist Industry is reflected in the GDP statistics by a mammoth 32.6 percent increase in the output of the Hotel and Restaurant sector.
Dr. Douglas described the performance as commendable by any standard but especially when viewed against the backdrop of the relatively high public sector debt, the uncertain global economic climate, war and terrorism around the globe, and rising oil prices.Indeed, our growth rate has eclipsed the average growth rate of 3.9 percent or the Eastern Caribbean Currency Union as well as the average of 5.6 percent for developing countries in the Western Hemisphere and the average of 3.3 percent for the industrialised countries. In the Caribbean as a whole, only Trinidad and Tobago, with its massive windfall from increased energy prices managed to surpass the very remarkable growth rate achieved by our Federation, said Prime Minister.
Dr. Douglas said what is even more remarkable is that this exceptional level of economic growth was not accompanied by a massive escalation in consumer prices. During 2004, the rate of inflation as measured by the movement in retail prices remained relatively subdued at 2.3 percent for the year. Moreover, a comparison of retail prices in the first six-months of this year with retail prices in the first six months of last year reveals that the inflation rate has remained stable at 2.2 percent per annum, said Prime Minister Douglas.
He said that the Balance of Payments statistics, which records the inflows and outflows of funds arising out of transactions between the Federation of St. Kitts and Nevis and the rest of the world, show that the Federations current account position improved quite remarkably relative to 2003. The current account deficit narrowed to $236.4 million or 21.3 percent of GDP in 2004 from $312.5 million or 31.3 percent of GDP in 2003.
This significant improvement was due mainly to higher tourism receipts, which grew by 39 percent to reach $282.9 million in 2004. On the other hand, the merchandise trade deficit expanded slightly by 1.2 percent, the St. Kitts and Nevis leader disclosed.
Prime Minister said that during 2004, several major investment projects were completed and as a result significantly lower inflows of foreign direct investment were recorded, and as such, the surplus on the Financial and Capital Account fell by 10 percent to $267.6 million or 24.1 percent of GDP. The overall balance of payments position of St. Kitts and Nevis recorded a surplus of $36.9 million or 3.3 percent of GDP in contrast to the deficit of $2.6 million or 0.3 percent of GDP that was recorded in 2003.
