Mr. Speaker, I greet you and the members of this Honourable House with good tidings as we celebrate the anniversary of Team Unity’s first year in Government. I am compelled to highlight the successful results of our fiscal and economic performance over the past 12 months of our Team Unity Administration. I am told that some of the numbers are being fine tuned but I can share the following with the country:
Preliminary indicators received from the Statistics Department suggest an expansion of economic activity in 2015. Over the 12-month period, Real GDP grew by a significant 6.6 percent compared to 6.1 percent in 2014. Developments in the Construction and Tourism Sectors provided the key impetus for growth with spillover effects on other sectors of the economy such as Mining and Quarrying, Wholesale and Retail Trade, Transport, Storage and Communication.
Construction activity was estimated to have increased by 17.4 percent in comparison to the 12.3 percent estimate that was recorded in January to June 2015. The performance of the sector was reflective of the year over year increases in the importation of building materials such as lumber, cement and stones. The production of blocks and concrete increased by 10.0 percent, consistent with ongoing activity in the Construction Sector.
While activity in the sector was impacted by the ongoing construction work of private sector hotel and condominium developments, public sector led construction activities also contributed significantly to the overall outturn of the sector. In addition, the ongoing public sector projects such as the upgrade of roads, community-based projects and sporting facilities have positively impacted the performance of the construction sector.
The Tourism Sector grew by 4.4 percent during 2015. Stay-over arrivals increased by 4.3 percent while cruise ship passenger arrivals grew by a whopping 35.6 percent consistent with a 24.9 percent growth in the number of cruise ship calls.
The decelerated price movements continued during the first three quarters of 2015 partly reflecting positively on our policy measure to remove VAT and Import Duty from food medicine and funeral expenses coupled with lower fuel prices on the international market. By the end of 2015 the Consumer Price Index (CPI) recorded a decline of 2.8 percent. The major contributors to the deceleration in the CPI were recorded for the following sub-indices: Food and Non-alcoholic Beverages, Miscellaneous Goods and Services and Transport.
Mr. Speaker, the prudent approach of the Team Unity Administration to the management of the fiscal affairs of the Government is nothing but commendable. From the preliminary information that we have, it is expected that we would have realized fiscal surpluses on all accounts. A Recurrent Account Surplus in excess of $220 million would be achieved with Total Revenue and Grants exceeding $773 million. When activity from the Capital Account is taken into consideration, we anticipate that we would have realized an Overall Surplus in excess of $130 million and a Primary Surplus in excess of $160 million.
The very successful Discount VAT Day is worthy of mention as we reflect on the performance of the economy over the past year. A total of 83 businesses in the Federation participated in the event with 60 businesses in St. Kitts and 23 on Nevis. These businesses combined helped to generate sales totaling $40.1 million in one day. This is indeed a remarkable performance and a remarkable response to this initiative of the Team Unity Government. I take this opportunity to thank the business community, the general public, the consumers for participating and taking advantage of this special effort by the Government.
The Future
The preliminary GDP estimate suggests that growth for 2016 will be 4.6 percent. This growth estimate exceeds that of Latin America and CARICOM in which, according to assessments made by ECLAC and IMF, growth for the region is estimated at 2.1 percent for 2016. St Kitts and Nevis under Team Unity is on track for another sterling economic performance. To God be the Glory!
Conclusion
I thank the economic actors for their vote of confidence in the policies of Team Unity and the economy of St Kitts and Nevis.
Together we shall make St Kitts and Nevis the best small island state in which to live, do business and realize one’s dreams.
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