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  • SAINT KITTS AND NEVIS

  • St Kitts and Nevis

    Saint Kitts and Nevis

    Development Challenges
    St. Kitts and Nevis’ is the smallest nation in the Americas and in the Western Hemisphere, with a population of around 50,000 and an area of 270 sq km. As the rest of the OECS countries, its tourism-dependent economy was severely affected by a recession triggered by the global financial crisis and falling tourism revenues. The GDP fell 9,6% and 1,5% in 2009 and 2010 respectively. The archipelago is considered an upper- middle income country (with a Gross National Income of US$ 11,897). Its high human development is ranked 72nd in the UN Human Development Index. As a result of its efforts to enhance the transparency of the financial sector, the country was removed from the OECD grey list of tax havens . Saint Kitts and Nevis faces a number of development challenges including

    • Diversify the economy
    • Reduce poverty
    • Narrow production base and diseconomies of scale including provision of public services
    • Overdependence on tourism revenues from the US
    • High public debt, with a Public Debt to GDP ratio close to 200% in 2010
    • Vulnerable to external economic shocks and natural disasters (including earthquakes, tornados and droughts)
    • Implement good governance

    Key Trade Issues

    • As a CARIFORUM member, further implementation of the Economic Partnership Agreement between this regional group and the EU
    • As part of CARICOM, finalise negotiations for a Free Trade Agreement (FTA) with Canada to replace the Caricom- Canada Trade and Economic Co-operation Agreement
    • Improve its business environment and promote its economic citizenship program to attract Foreign Direct Investment
    • Further economic and commercial regional integration within Organisation of Eastern Caribbean States and CARICOM

    Government Priorities
    The government, supported by the IMF and the World Bank, is implementing deep reforms in order to strengthen the country´s financial position, including:

    • Fiscal consolidation
    • Improve the effectiveness and efficiency of the public sector
    •  Comprehensive debt restructuring
    • Strengthen the financial sector

    At the regional level, the Eight Point Programme is the plan of action designed by the Eastern Caribbean Currency Union in response to the financial crisis.
    The elements of the Eight Point Programme are:

    • Suitably adapted Financial Programmes for each country
    • Fiscal Reform Programmes
    • Debt Management Programmes
    • Public Sector Investment Programmes
    • Social Safety Net Programmes
    • Financial Safety Net Programmes
    • Amalgamation of the Indigenous Commercial Banks
    • Rationalisation, Development and Regulation of the Insurance Sector

    Trade and Tariff Graphs

    Graphs of the country’s export markets, its export performance in a key sector and tariffs exporters of a sample product face.
    Trademap sample Trademap sample: The map uses color codes to illustrate the relative size of different markets in the overall exports of the country shown in pink.
    Trademap sample Trademap sample: The vertical axis shows import values by key importing countries, while the horizontal axis shows export values by the country for the same sector. I.e. the country has gained market share in the case of an importing country at the bottom right of chart and lost market share for countries top left. The size of circles is proportional to market size.
    Market access map sample Market access map sample: The world map shows trade values and tariff levels for a key export product by importing countries. Color codes indicate protection levels. Red circles denote trade volumes.

    Trade and Investment Data

    Detailed data on the country’s export performance, key imports and foreign investment, grouped by product and service categories (HS and BOP).

    Trade Information Sources

    A listing of country specific print and online publications on trade related topics. Includes information from both ITC and external sources.

    Trade Contacts

    The most important trade contacts, including importers’ and exporters’ associations, trade support institutions, trade promotion organizations and institutions providing business development assistance.