LONDON, March 11, 2021 /PRNewswire/ -- During his weekly government programme, Prime Minister Timothy Harris revealed that the Federation of St Kitts and Nevis is expected to witness economic growth of 5.5 percent in 2021. The increase is a significant improvement from 2020, which saw St Kitts and Nevis' economy drastically decline due to the global ramifications of the COVID-19 pandemic. However, after receiving vaccine donations from the Government of India and rolling out its mass vaccination programme across the islands, the government has said they will be shifting attention to now focus on economic recovery.
Prime Minister Harris has said this will include the provision of tax incentives and other financial and policy-based support. The government will also continue to commit itself to national development and ensure that capital projects are delivered as outlined in the 2021 Budget Address.
PM Harris said one of the approaches the government will utilise is one of 'pro-growth': "We expect that the key sectors that would drive our economic recovery would include construction, manufacturing, agriculture, ICT and services including tourism."
"Notably, construction activity, which generally contributes about 16 percent to GDP, would be positively impacted by ongoing projects such as the resurfacing of the island main road and residential construction. The construction of other major projects including the solar farm, the new Basseterre High School and health centres around the island are also expected to contribute to the projected growth in 2021," he added.
Before the pandemic, St Kitts and Nevis enjoyed continuous economic growth over five years. The dual-islands also became the first independent state in the Eastern Caribbean Currency Union to align its debt-to-GDP ratio to international standards twelve years before the deadline.
St Kitts and Nevis is familiar with adapting its economy to promote positive growth. The Federation used to be heavily reliant on the sugar industry up till the late 1970s however had to diversify its economy due to declining world prices. A few short years later, St Kitts and Nevis pioneered the Citizenship by Investment Programme – the process of attracting foreign direct investment on the islands in exchange for the granting of citizenship.
Today, the CBI Programme has been in operation for almost four decades, inspiring several similar initiatives worldwide. Revenues from CBI have contributed to countless national development projects and have been a 'major contributor' to supporting the economy during the pandemic. Investors interested in becoming citizens of St Kitts and Nevis must make a one-time qualifying investment to the Sustainable Growth Fund. Families of up to four can take advantage of a limited time offer that provides citizenship for $150,000 – the same price as a single applicant – rather than the previous $195,000.
SOURCE CS Global Partners