 |
| The Queen Mary 2 and the Sun Princess docked at Port Zante (photo by Erasmus Williams) |
BASSETERRE, ST. KITTS, FEBRUARY 9TH 2005 (CUOPM) The economy in St. Kitts and Nevis expanded nearly four percent in 2004.
Thats according to the Barbados-based Caribbean Development Bank (CDB) which said that real GDP in St. Kitts and Nevis expanded 3.9 percent last year.
CMC says the CDB reporting on economic activity in the Caribbean last year indicated the 3.9 percent growth in St. Kitts and Nevis was attributed to strong performances in tourism, transportation and communication.
CDB said most of its borrowing members, were able to capitalise on the strengthening global economy, showing real rates of growth compared to 2003.
Tourism was the main driving force, supported by construction and to a lesser extent financial services, manufacturing and agriculture. These developments occurred within the context of only slightly higher inflation levels, as the effects of rising oil prices appeared to have been limited, the CDB said in a statement.
Related to the rise in real sector activity, it said, was an increase in Government revenue, and this coupled with relatively slower growth in current expenditure led to an increase in savings.
It said, however, that the overall position of public finances was mixed, as some countries engaged in expansionary capital works programmes leading to widening overall deficits.
The rise in domestic demand was also reflected in the financial sector in a pick-up in broad money supply and credit growth, which led to some reduction in excess liquidity levels. Despite this, regional central banks lowered indicative rates in a further attempt to stimulate growth and reduce the levels of unused funds in the system, the bank said.
Preliminary estimates suggest the economies recording the highest growth rates were Anguilla (12 percent), Trinidad & Tobago (6.7 percent), Antigua & Barbuda (5.1 percent) and Belize (between 4.0 percent and 5.0 percent).
The CDB release said that notwithstanding the relatively strong performances of these economies, rates in Trinidad and Tobago, Antigua and Barbuda and Belize were lower than in the previous year, potentially representing a return to a more sustainable growth path in these economies.
Anguilla, the fastest growing economy, benefited from increased tourism activity and growth in the construction sector while petroleum and petrochemical operations dominated output in Trinidad & Tobago. Tourism also contributed to the improved performances in Antigua & Barbuda and Belize.
Real GDP in St. Kitts and Nevis expanded by 3.9 percent reflecting strong performances in tourism, transportation and communication, while in Barbados real activity (up 3.4 percent) was bolstered by gains in tourism and the non-traded sectors.
Output also grew in St. Lucia (3.4 percent) and Dominica (2.6 percent), due to improvements in agriculture and tourism. However, in Dominica, this was also supported by growth in the manufacturing and construction sectors.
The British Virgin Islands also turned in a creditable performance in 2004 with GDP rising by 2.0 percent on the basis of strong growth in tourism and financial services, while Guyana, which registered a contraction in 2003, recovered in 2004 with output expanding by 1.5 percent, as a result of higher sugar production and an increase in services output.
During the year, economic activity was constrained in the Cayman Islands and Grenada, as these countries were battered by the passage of Hurricane Ivan.
The hurricane, which passed over the islands in September, wreaked havoc on the economies, resulting in the loss of life, and in significant damage to productive capacity and to economic and social infrastructure.
Preliminary estimates suggest that the Cayman Islands was, nevertheless, able to post some growth over the year as a whole, reflecting gains made in tourism prior to the passage of Hurricane Ivan.
Grenada was also devastated by the hurricane, with activity contracting by 3.2 percent, after an encouraging 2003 performance, when growth was a strong 5.7 percent. Grenada, prior to the passage of Hurricane Ivan, was on track to achieving a growth rate of between 4.0 percent and 5.0 percent.
However, the destruction caused by the storm system, estimated at $890 million (in excess of 212 percent of GDP), eliminated any gains that could have been made in 2004.
In Jamaica, output was affected by Hurricanes Charley and Ivan, which caused downward revisions to growth rates. Prior to the hurricanes, growth was projected at 2.5 percent, a slight improvement over 2003. However, the damage caused by the hurricanes resulted in a growth rate of less than 2.0 percent.
The Bahamas was substantially affected by Hurricanes Frances and Jeanne.
Consequently, growth for The Bahamas, estimated at around 2.5 percent in 2004, was lower than the expected 3.0 percent, but still managed to surpass the 1.9 percent recorded for 2003.
