BASSETERRE, St. Kitts — AMID growing global uncertainty and shifting economic priorities, the St. Kitts-Nevis Chamber of Industry and Commerce (SKNCIC) is calling on the government to move beyond policy discussions and focus on effective implementation to drive local development.
The appeal comes as the government recently held consultations with key stakeholders in preparation for the 2026 national budget. The Chamber was among those participating in the discussions at the St. Kitts Marriott Resort.
Trevor Blake, President of the SKNCIC, underscored the importance of translating strategies into tangible results, especially as the global economic landscape becomes increasingly fragmented.
The United States has adopted a country-first policy, imposed tariffs on most of its trading partners, and deported illegal immigrants who were vital to their economic development. These decisions have significant repercussions for residents and the business community alike in the Federation.
Blake praised the Federation’s progress over the decades, noting that St. Kitts and Nevis has “punched above its weight” compared to some regional counterparts. However, he cautioned that sustaining and accelerating this growth remains a challenge for both government policymakers and private-sector stakeholders.
"How do we institutionalise the critical requirements that will ensure that our growth can not just be sustained but accelerated to take us to the next level? We meet at a time when the global economy is in a state of flux," he said.
His remarks come as international institutions project slower global growth, persistent inflation, and heightened uncertainty — all of which are tempering activity in the domestic economy.
“The ‘America First’ policy shift, with the resulting trade wars, the continuing Russia-Ukrainan war, and the persistent instability in the Middle East — notwithstanding the recent tenuous peace deal — have disrupted global supply chains and applied past pressures on our domestic producers, distributors, and retailers who already face narrow margins and challenging freight logistics,” Blake explained. “The situation unfolding in the Caribbean waters to the south is also of concern, with the potential impact on sea and air linkages.”
Given the Federation’s dependence on imported food and its reliance on tourism as a key economic driver,the country stands 'at a crossroads' as global challenges intensify.
“It is important, therefore, that our domestic policies - the policies that we hope to see in the 2026 budget, are geared towards mitigating some of these impacts," he urged. "The chamber notes the attempts of the government to begin to reduce the degree of reliance on the two economic drivers so far, which is the CBI programme and tourism, by seeking to strengthen the foundation's productivity and competitiveness, enhancing road networks, increasing agricultural yields, inviting foreign direct investment and expanding airlift and cruise ship arrivals. We also note and congratulate the government on the success it has achieved in curbing the spike in violent crime,” he added
“It is important, therefore, that our domestic policies — the policies that we hope to see in the 2026 budget — are geared toward mitigating some of these impacts,” he urged. “The chamber notes the attempts of the government to begin to reduce the degree of reliance on the two economic drivers so far, which is the CBI programme and tourism, by seeking to strengthen the foundation's productivity and competitiveness, enhancing road networks, increasing agricultural yields, inviting foreign direct investment and expanding airlift and cruise ship arrivals. We also note and congratulate the government on the success it has achieved in curbing the spike in violent crime."
Blake also emphasized that unchecked criminal activity poses “an existential societal threat and a deterrent to investment.”
"The Chamber, therefore, continues to support the police in their efforts to keep crime under control and remains committed to collaborating with the government on the citizen security programme," he said.
Turning to the CBI programme, Blake noted that the Federation can no longer depend on CBI revenues, which have seen a sharp decline. He cited data from the International Monetary Fund showing that in 2023, CBI revenues accounted for about 22 percent of GDP, but have since fallen to 8 percent and are projected to remain around 9 percent for the rest of the decade.
"This precipitous fall, which appears to be lasting, demonstrates that we cannot any longer depend on CBI inflows as a major source of revenue," Blake warned. "We applaud the government for the steps taken to reform the programme in collaboration with its regional partners. We trust that this will bring credibility and sustainability to the programme and stem what appeared to have been a race to the bottom with all of the resulting adverse consequences,” he emphasized.
In response to these challenges, the government has been pushing to diversify the Federation’s economy by strengthening other key sectors and exploring new avenues for growth.
Prime Minister Dr. Terrance Drew is expected to present a full update on the state of the economy when he delivers the 2026 Budget Address next month.
