Finance Minister “cautiously optimistic” about foreign investment

By VonDez Phipps
Reporter-SKNVibes.com

BASSETERRE, St. Kitts – DURING his latest press conference, Minister of Finance and International Trade Hon. Dr. Timothy Harris projected that there will be no major challenges facing the country’s Foreign Direct Investment (FDI) and remittances for 2009.

In updating the general public in relation to the country’s current economic position, Dr. Harris said, “Events are unfolding in this financial and economic drama; however, we have been able to garner a better sense of the probable consequences for us from the financial crisis in the USA and Europe.

“A significant portion of our investment, particularly in the tourism sector, comes from the USA and that economy is now officially in a recession. Presently we are expecting major projects such as the 2500-acre Christophe Harbour project on the South East Peninsula to continue and this is very good news. The recent launch of the world-renowned Fazio Golf Course speaks well of the commitment of the owners to move full steam ahead.

“I’m advised that the Kittitian Heights project is expected to move ahead in 2009 and the Marriott Vacation Club International Project is on schedule to start its second phase during the first half of 2009.”

Minister Harris also mentioned the Marine Park and Beaumont Park projects and noted that their construction is expected to continue apace. He said his government would make every effort to ensure all investments in the productive sector, whether from foreigners or locals, are facilitated.  Harris noted that the Federation has been “a most attractive destination for investors” and has the second highest record in the Caribbean of attracting capital investment.

~~Adz:Right~~He also explained how remittances to the nation would be affected as a result of the international economic crises.
“FDI is a significant contributor to economic growth and expansion in our country and given where we stand, we are highly competitive in the Caribbean region.

It seems then that in the area of Foreign Direct Investment, we can be cautiously optimistic since so far we have no indication of any halt, delay and or postponement in terms of investment. Of course the real estate market can suffer some fallout as a result of the changing wealth situation in the US.

“The largest flows of remittances to the Caribbean come from the US followed by Western Europe. With millions of people joining the unemployment line in the US, this will affect their ability to take care of themselves and reduces their capability to remit funds abroad to others.  Fortunately for us, remittances do not constitute a very high portion of our national income.”

Harris added that unlike Jamaica and Guyana, remittances for the Federation represent 1% of its GDP. He stressed that “the impact then for St Kitts and Nevis can be reasonably adduced to be low”.