IMF Staff Country Reports

St. Kitts and Nevis: 2024 Article IV Consultation-Press Release and Staff Report

Publication Date:

May 15, 2024

Electronic Access:

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Summary:

The 2024 Article IV Consultation with St. Kitts and Nevis discusses that despite a continued strong tourism performance, growth fell to 3.4 percent in 2023 due to delays in public and private sector investment projects. The economic outlook is positive thanks to the renewable energy projects that would significantly reshape the economy. A privately funded utility-scale solar and battery storage project is expected to be completed in 2025 and a geothermal project in Nevis is at the planning stage. Debt and cash management could be improved and the social security fund requires urgent reform. Maintaining a large amount of short-term debt can be costly, particularly when fiscal buffers are available. The 2023 external position is assessed to be weaker than the level implied by medium-term fundamentals and desirable policies. The current account deficit is projected to fall to over the medium term supported by lower fossil fuel imports. International reserves are adequate.

Series:

Country Report No. 2024/126

Subject:

Capital spending Current spending Environment Expenditure Financial institutions International organization Monetary policy Nonperforming loans Public debt Renewable energy

Frequency:

regular