NEW YORK - DESPITE the challenges facing St. Kitts and Nevis, the International Monetary Fund (IMF) has predicted a five percent economic growth.
In its Western Hemisphere Outlook released at the Annual Meeting of the IMF and World Bank, the IMF revealed on Friday (Oct. 13) that the Federation is expected to see a 4.9% growth which is lower than the 8.8% reported last year, while next year’s figure would be even slower at 3.8%.
In the wider Caribbean region, based on the IMF’s outlook, Guyana leads the economic project where it is expected to see growth of 38.4%, while other territories, would likely see single digit growth rates.
The projection comes as tourism dependent territories are still feeling the cushioning effects of the slow rebound of the tourism sector, which has still not returned to prepandemic levels, according to the IMF.
In its broader outlook of the region, the IMF noted that the Latin America and Caribbean region is expected to see a 2.3% growth rate for this year.
When questioned last week on Freedom FM’s ‘Issues’ about the Federation’s economic projection and growth, Prime Minister Dr. Terrance Drew acknowledged several challenges facing the country such as geopolitical issues grappling the world - including the two wars and Climate Change.
Dr. Drew, who is also the country’s Finance Minister, explained that the Federation and the wider Caribbean continue to face rising inflation, Climate Change and economic sanctions to countries with critical world infrastructure.
In the case of St. Kitts and Nevis, Dr. Drew noted that the country is facing a “Polycrsis” and it is time for it to transition in a more sustainable state.
He told the host that by becoming a more sustainable island state, the Federation would have the best opportunity to survive.
“It addresses issues of Climate Change, it addresses issues of how we live as a people, it addresses the issues that we deal with on a daily basis, from healthcare, education, jobs, economy, food, water, energy and our relationships with each other. But all of that has to be premised on good governance. Without good governance the chances of achieving this would be much much less. Therefore, that is how we have to deal with the Polycrisis,” Dr. said.
He reiterated comments made by various IMF officials on the way forward for the Caribbean if they are to be progressive states, and moving away from their dependency on tourism.
Climate Change has been one of the major talking point of the challenges facing the region when it comes to economic development.
That was reiterated by regional leaders at the just concluded United Nations General Assembly in New York, in which those challenges are proving to be an existential threat to the existence of the region.
“Let’s start by being very innovative, finding our own local solutions to deal with the changes that are happening. These changes are not going to stop; they are going to multiply! They are going to become more acute because of where the world is heading now! The world is heading to a point where the existence of the Caribbean as a viable region is at threat!” Drew exclaimed.
The Prime Minister declared that the Government would take all measures necessary to protect St. Kitts and Nevis.
