BASSETERRE, ST. KITTS, NOVEMBER 2ND 2006 - The construction industry in St. Kitts and Nevis contributed an average of 16.7 percent to the Gross Domestic Product (GDP) between 2001 and 2005, while the hotels and restaurants sectors in 2003 and 2004, averaged 30.6% over this two year period.
Director of Economic Affairs and Public Sector Investment Planning in the Ministry of Sustainable Development, Mr. Howard Richardson said economic growth performance in St. Kitts and Nevis in 2005 was driven by robust growth in communications (14.8%), hotels and restaurants (7.5%), banking and insurance (7.5%), wholesale and retail trade (6.3%) and construction (5.7%).
Mr. Richardson said that real economic growth in the Federation of St. Kitts and Nevis averaged 2.3% during 2001 - 2005. This average rate of growth was 2.8 percentage points below the average rate of 5.1% for the previous five-year period.
~~Adz:Right~~The growth rate during the period under review was uneven, falling from 1.7% in 2001 to 1.3% in 2003, and then increasing significantly to 7.3% in 2004 before falling to 4.1% in 2005.
"The deceleration in growth from 2002 to 2003 was mainly attributable to global developments, most notably, the continuing weakness in the international economy, the destabilizing effects of globalization and trade liberalization, which emanated from the September 11 terrorist attacks," Mr. Richardson told the National Consultation on the Economy.
He said that economic performance improved in 2004, largely due to the strong growth in the transport, hotels and restaurants and banks and insurance sectors.
"Value added in the construction sector increased by 5.7% in 2005 as a result of ongoing work on several major projects such as the Nursing School, Warner Park Stadium and a significant rise in the construction of homes by individuals," said Mr. Richardson, who disclosed that significant growth was recorded in the hotels and restaurants sectors in 2003 and 2004, averaging 30.6% over this two year period.
He said this has been due to substantial increases in tourist arrivals facilitated by increases in the hotel room stock and by increased airlift from North America and the United Kingdom.
"The outlook for the hotel and restaurant sector is promising," said Richardson.
