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St. Kitts and Nevis Information
St Kitts & Nevis Weathering Economic Storm
2009-07-10 16:51:11 by
Reuters.com recently featured an article on the economic problems of the Caribbean region, noting that the smaller nations like St Kitts and Nevis feel the challenges more than larger, developed nations.
They state, "Their high dependence on tourism, remittances, investment flows, imports and commodity prices makes than all the more vulnerable to recent worldwide economic tremors that have shaken giants like the United States and China.
"Shock has followed shock. First, soaring oil prices last year pushed up energy and food import bills and swelled inflation. Then, recession in the United States and Europe cut tourism and investment flows.
"The International Monetary Fund forecasts real 2009 GDP for the eight-member Eastern Caribbean Currency Union (ECCU), which includes St. Kitts and Nevis, will contract by 2.5 percent 'reflecting a sharply-slowing global economy, declining tourist arrivals and foreign direct investment flows, and increased financial sector stresses.'"
The St Kitts-Nevis Tourism Minister Richard Skerritt said there has been a 12% drop in visitors from the US this Jan-April, which caused the St Kitts Marriott to lay off 100 workers. Hurricane Omar last October battered the Four Seasons on Nevis, and caused its closure, losing many more jobs. "We are weathering the storm better than most," Skerritt told Reuters. St. Kitts is also planning on the Christophe Harbour project, a big new hotel, marina and golf course development on its southeast peninsula, to attract new visitors.
The government is taking measures to strengthen the economy. "It has removed some duties and taxes to shield consumers from price rises in basic food, introduced stimulus measures for small hotels and negotiated hard with airlines and big resort operators to try to keep visitors coming," according to Reuters.
Read the full analysis at Reuters.com.
They state, "Their high dependence on tourism, remittances, investment flows, imports and commodity prices makes than all the more vulnerable to recent worldwide economic tremors that have shaken giants like the United States and China.
"Shock has followed shock. First, soaring oil prices last year pushed up energy and food import bills and swelled inflation. Then, recession in the United States and Europe cut tourism and investment flows.
"The International Monetary Fund forecasts real 2009 GDP for the eight-member Eastern Caribbean Currency Union (ECCU), which includes St. Kitts and Nevis, will contract by 2.5 percent 'reflecting a sharply-slowing global economy, declining tourist arrivals and foreign direct investment flows, and increased financial sector stresses.'"
The St Kitts-Nevis Tourism Minister Richard Skerritt said there has been a 12% drop in visitors from the US this Jan-April, which caused the St Kitts Marriott to lay off 100 workers. Hurricane Omar last October battered the Four Seasons on Nevis, and caused its closure, losing many more jobs. "We are weathering the storm better than most," Skerritt told Reuters. St. Kitts is also planning on the Christophe Harbour project, a big new hotel, marina and golf course development on its southeast peninsula, to attract new visitors.
The government is taking measures to strengthen the economy. "It has removed some duties and taxes to shield consumers from price rises in basic food, introduced stimulus measures for small hotels and negotiated hard with airlines and big resort operators to try to keep visitors coming," according to Reuters.
Read the full analysis at Reuters.com.