 |
| Officials of the International Monetary Fund (left) brief Acting Prime Minister the Hon. Sam Condor and other officials of Government, the Eastern Caribbean Central Bank and the Caribbean Development Bank on their preliminary assessment of their visit. |
BASSETERRE, ST. KITTS, OCTOBER 25TH 2005 An International Monetary Fund (IMF) Team, which visited the Federation last month, has concluded in its final report that economic growth rebounded in 2004, exceeding six percent and is expected to reach almost five percent in 2005.
That is a very, very, very, good assessment in terms of the management of the economy, said St. Kitts and Nevis Prime Minister and Minister of Finance, Dr. the Hon. Denzil L. Douglas during a recent Press Conference.
Responding to questions from the media on the recent annual visit by an Article 4 Mission to St. Kitts and Nevis on September 14, 2005, Prime Minister Douglas said the IMF reported that the economic rebound was driven by tourism and construction.
They also expressed the view that higher oil prices are worrisome, although the effect so far has been limited to increasing fiscal costs rather than leading to higher inflation or lower growth, Dr. Douglas reported the IMF as saying.
He also reported that the IMF estimated that tourism receipts in 2004 have risen by more than 80 percent from their 2002 low, and that the buoyant tourism sector has more than offset the decline in sugar exports in that year and has led to a substantial narrowing of the external current account deficit.
Dr. Douglas disclosed that in respect of the fiscal performance of the Government, the IMF reported that Central Government finances for 2005 look set for improvement relative to 2004, bolstered by stronger than expected revenues, and lower than expected net lending and capital expenditure.
 |
| Minister of State with responsibility for Finance, Sen. the Hon. Nigel Carty; Acting Financial Secretary, Mrs. Janet Harris; Financial Consultant, Ambassador His Excellency Wendell Lawrence, Minister of State for Tourism, Sen. the Hon. Ricky Skerritt and officials from the Eastern Caribbean Central Bank and the Caribbean Development Bank at the IMF briefing.
|
Although debt reduction continues to be a major challenge for the Government, that rebound in economic activity provides an excellent opportunity for corrective action.
The IMF also identified the transition from sugar as a major challenge, but expressed the view that the closure of the industry represents a unique opportunity to enhance the country's growth potential and release the value of its assets.
The Government is currently studying the report of the IMF and evaluating their recommendations with a view to implementing those recommendations deemed appropriate in the context of the social and economic circumstances of the Federation.
The IMF officials briefed the Hon. Sam Condor and other Government and Central Bank officials prior to their departure.
