St Kitts - Nevis Economy Based on 5 Main Industries

2011-01-01 14:28:47 by

An in-depth article by the St Kitts-Nevis Observer recently repored results of an economic study, which show that the closure of the 350-year old sugar industry in 2005 has shifted the economy of St Kitts and Nevis into five main industries: financial Intermediation (16.18%); real estate renting and business activities (14.93%); construction (12.35%); transport, storage, and communication (11.40%); public administration, defense, and compulsory social security (8.98%).

These conclusions were based on each industry's share of the Gross Value Added, through a National Accounts Statistics project. National Accounts statistics is one of the key macro-economic variables produce worldwide. It measures the level of economic activity of a particular country or region, and hence allows for the comparison of the size of economies around the world. Additionally, National Accounts statistics- particularly GDP estimates is used to develop important macro-economic indicators e.g. Per capita GDP, Balance of Payments (BOP) current account deficit as a percentage GDP, budget deficit to GDP, and Debt to GDP to name a few. These indicators permit the further analysis of the country?s performance, and comparisons on regional and international levels.

One of the main objectives of the rebasing exercise was to make the real GDP by economic activity more relevant to recent economic affairs. The project by St Kitts and Nevis was part of a regional exercise for the Eastern Caribbean Currency Union (ECCU) member countries. This regional approach has the added benefit of allowing comparisons to be made amongst member countries, and enabling the reconstruct of an ECCU regional GDP estimate.

Read more at TheStKitts-NevisObserver.com.