| Economy | Saint Kitts and Nevis |
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Economy - overview:
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The economy of Saint Kitts and Nevis is heavily dependent upon tourism revenues, which has replaced sugar, the traditional mainstay of the economy until the 1970s. Following the 2005 harvest, the government closed the sugar industry after decades of losses of 3-4% of GDP annually. To compensate for employment losses, the government has embarked on a program to diversify the agricultural sector and to stimulate other sectors of the economy, such as tourism, export-oriented manufacturing, and offshore banking. Economic growth was above average for Latin America from 2004 to 2006, but has since slowed. Tourism is projected to give the economy a boost in 2010, as large cruise ships add St. Kitts and Nevis to their itineraries. More than 106,000 tourists visited the islands in 2008. Like other tourist destinations in the Caribbean, St. Kitts and Nevis is vulnerable to damage from natural disasters and shifts in tourism demand. The current government is constrained by a high public debt burden equivalent to roughly 185% of GDP, largely attributable to public enterprise losses. |
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| Economy | Saint Kitts and Nevis |
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This page was last updated on 31 January, 2010 |
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