New projects to boost economic growth in St Kitts and Nevis
Saturday, November 8, 2003
BASSETERRE, St Kitts: Financial Secretary Mr. Wendell Lawrence said Wednesday that despite the economic downturn, several projects and activities planned over the next few months should help considerably in boosting the rate of real economic growth, creating job opportunities and generating additional foreign exchange in St. Kitts and Nevis.
A just released International Monetary Fund report blamed the economic downturn on several factors including the three hurricanes which caused over one billion dollars in damage in St. Kitts and Nevis and the terrorist attack in the United States, which affected the global economic situation.
Mr. Lawrence was however optimistic that the economic situation in St. Kitts and Nevis is expected to improve next year with the coming on stream of several capital projects.
These include the construction of a golf course and tourism facility at La Vallee in Sandy Point, the reconstruction of the Pogson Hospital in Sandy Point, the construction of the Pig Production Unit at Conaree, the construction of Caribbean Star's new Head Office on lands near the Robert L. Bradshaw International Airport, the building of hundreds of homes and villas by private and public sector entities and an increase on cruise ship passengers and stay-over visitors.
Mr. Lawrence also said that the St. Kitts and Nevis economy will also improve when the Royal St. Kitts Marriott Resort becomes fully operational and the Angelus Hotel expand to 102 new suites.
"These projects and activities should help considerably in boosting the rate of real economic growth, creating job opportunities and generating additional foreign exchange," said Lawrence.
He said however that there are still a number of fiscal challenges that Government must continue to address and increased economic activity should provide a good platform from which these fiscal issues may be resolved.
Mr. Lawrence said that the deceleration in the economy of St. Kitts and Nevis as a result of the three hurricanes and the terrorist attack on the World Trade Centre between 1998 and 2000 is consistent with the global trend experienced throughout the Caribbean region.
"The entire OECS region, including St. Kitts and Nevis, has suffered from relatively sluggish growth rate in recent years," said Lawrence, who noted that some countries have recorded contractions in their economies, which have been manifested in negative real economic growth.
Mr. Lawrence said that despite the economic challenges, St. Kitts and Nevis has managed to maintain positive growth rates, notwithstanding the effects of the global economic slowdown, the devastating impact of international terrorism and war, fluctuating oil prices and the steady erosion of the trade preferences that we enjoy in respect of our main exports, including sugar."
He pointed out that with indicators suggesting that the US economy may be shedding the recession tendencies that have plagued it in recent years, Caribbean economies could be on the upswing.
"This should have a positive impact on global economic activity and on the performances of the tourism and manufacturing sectors of a number of Caribbean countries, including St. Kitts and Nevis," said Lawrence.
Financial Secretary in the Nevis Island Administration, Mr. Laurie Lawrence, had a similar outlook.
"The Nevis economy experienced difficulties as a result of a downturn in tourism and financial services, which are the pillars of the economy. The weak growth is a direct result of the negative impact of those two areas on the economy," said Lawrence.
He added that the Financial Services sector appears to be stabilising after the impact of the OECD and FATF initiatives and the prospect for the future of tourism is encouraging.
"We expect an increase in tourism arrivals for 2004. So hopefully we would see an increase in the growth rate on the Nevis economy in the near future," Lawrence said.
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