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| CDB President, Dr. Compton Bourne (Photo by Erasmus Williams) | BASSETERRE, ST. KITTS, FEBRUARY 15TH 2007 - The economy of St. Kitts and Nevis and other borrowing member countries of the Barbados-based Caribbean Development Bank (CDB) showed strong economic growth among its borrowing member countries last year and improved performances is expected in 2007.
The CDB said that the tourism industry is expected to benefit significantly from the 2007 Cricket World Cup that will be held in St. Kitts and Nevis and seven other nations in the region from March 5th to April 28th this year.
"While construction activity is projected to slow somewhat as a number of related cricket investment projects are completed, other public and private sector projects currently underway or about to commence will fill the slack in the short to medium term and the expected marketing benefits should drive visitor arrivals," Caribbean Development Bank (CDB) president Dr. Compton Bourne said. But the financial institution has pointed to some areas within the tourism sector that were likely to affect the economy of the Caribbean states in 2007. ~~adz:Left~~
"The industry is extremely sensitive to the quality of environmental management, and it is not always clear that environmental issues and the associated disaster management issues, are being given the attention that is commensurate with the contribution of the industry to the economic and social well-being of countries," said CDB's Director of Economics and Programme, Alan Slusher.
Slusher made reference to growing social instability, particularly the increase in violent crime across the region, and a rising disaffection, particularly among male youth, with education.
"There is an increasing need for institutional arrangements to stimulate and motivate creativity in our societies, and to channel the resulting social energies into pathways which are productive," Slusher said. In a review of the region's economic performance in 2006, Bourne said the strong economic growth was led by expansion in tourism and construction, and supported by agriculture, business and financial services, as well as manufacturing.
He said in the case of Trinidad and Tobago, petroleum related activities were a major contributor to the economic growth in that country.
"With the exception of Montserrat, where heightened volcanic activity led to a reduction in economic activity, indications are that all other BMCs exhibited growth in 2006, with high rates in Anguilla, Antigua and Barbuda, the British Virgin Islands, Trinidad and Tobago and the Turks and Caicos Islands," Bourne said.
Bourne noted that following some moderation in 2005, the tourism industry performed "creditably" in 2006 benefiting from a strong global economy, local marketing efforts and increased airlift. The regional construction sector remained buoyant in 2006, with both public and private sector projects and Bourne said preparations for the upcoming Cricket World Cup tournament "provided a considerable part of the impetus for activity during the year, although high levels of activity could also be traced to non-cricket related business and tourism demand." ~~adz:Left~~
But he noted that the construction industry experienced difficulty last year, as a result of the inadequate supply of cement. The CDB president said there had been some improvement in the agricultural sector in 2006, due mainly to favourable weather conditions unlike the previous two years.
"In addition there appeared to be greater public sector involvement through the implementation of projects designed to improve competitiveness and agricultural support services," he said. Dr. Bourne said the prospects for sugar cane remained uncertain, with traditional sugar projection facing worsening export price prospects as a result of import regime changes in Europe, even as efforts continue among sugar producing countries for alternative uses of the crop.
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