Economic Development
Summary
Sustained growth is crucial for long-term development. COVID-19 has significantly negatively impacted the country’s economic performance, especially its main growth-driving sector, tourism. This has caused a multiplier effect on industries such as agriculture, transportation, wholesale and retail, and construction, leading to substantial job losses. The recovery from COVID-19 has been slow. However, despite uncertainties, the economic outlook for St. Kitts and Nevis remains positive based on the growth prospects aligned with the country’s National Development Planning Framework. Under this framework, the government will concentrate on four key areas to promote growth: 1) Economic Growth—Getting the Macro-economic Framework Right, 2) Refocusing the Tourism Sector, 3) Economic Diversification by transforming the agriculture, manufacturing, and financial services sectors, and 4) Capitalizing on emerging opportunities in the digital, blue, and creative economies.
The government has decided to focus on 4 focus areas to push forward this growth, they include: Economic Growth: Getting the Macro-economic Framework Right, Refocusing the Tourism Sector, Economic Diversification through the transformation of the; agriculture, manufacturing and financial services sectors, and Capitalising on Emerging Opportunities in the digital, Blue and Creative economy.
Priority One
Economic Growth: Getting the Macroeconomic Framework Right
Sustained growth is essential for long term development, Covid- 19 has had a significant negative impact on the country’s economic performance, with particularly sever impacts on the its major growth inducing sector tourism.
This resulted in significant job losses which has a multiplier effect including sectors like agriculture, transportation, restaurants, entertainment and construction. However, even with uncertainties in the global economy the economic outlook for St. Kitts and Nevis is one that is rebounding.
The government has decided to focus on 4 focus areas to push forward this growth, they include: Economic Growth: Getting the Macro-economic Framework Right, Refocusing the Tourism Sector, Economic Diversification through the transformation of the; agriculture, manufacturing and financial services sectors, and Capitalising on Emerging Opportunities in the digital, Blue and Creative economy.
Economic Growth Strategic Priorities
- Formulating macroeconomic strategies for sustained climate-sensitive inclusive growth
- Creating a conducive environment for promoting sustained climate-sensitive intensive growth
- Achieving and maintain macroeconomic stability
- Developing macroeconomic policies to reduce vulnerabilities
- Adopting a national employment strategy
- Developing strategies for overcoming poverty
- Maintaining a sizeable fiscal buffer
- Improving competitiveness in the production and export of goods and services
- Promoting enhanced CBI revenues
- Ensuring fiscal sustainability
- Making debt sustainable
- Making macroeconomic data consistent
Priority Two
Focus Tourism
Refocusing the Tourism Sector
Vision & Goals
Tourism is a major economic driver globally and has become a key sector for stimulating growth and development for the citizens of St. Kitts and Nevis. After the cessation of sugar production in 2005, the Government of St. Kitts and Nevis signalled its importance through the National Adaptation Strategy (NAS) 2006– 2013. The Sector has contributed significantly to promoting many areas in the economy such as Financial Services, Wholesale and Retail, Construction, Entertainment and Offshore Education. However, the sector is highly impacted by external and internal shocks therefore it is important to refocus the sector to maintain its relevance.
Tourism Strategic Priorities
- Formulating a national tourism strategy and action plan
- Improving tourism infrastructures
- Monitoring and enforce legislations, regulations and policies
- Elevating the cruise tourism
- Assessing the key impacts of climate change on tourism
- Rationalizing the coastal development
- Developing environmental policies for marine tourism
- Instituting measures to address solid waste management
- Developing digital marketing strategies for tourism
- Making digital skills a pillar of entrepreneurial development
- Developing tourism satellite accounts
- Undertaking flexible and targeted programmes (education, gender, digital)
- Focusing on value over volume, packaging, and inclusivity (creating authentic visitor experiences)
- Developing capacity and funding mechanisms for MSMEs in tourism
- Developing community-based tourism
- Promoting culture and heritage tourism
- Ensuring quality and standards
- Taking advantage of the tourism market niche
- Enhancing institutional arrangement
- Developing human resources
- Develop the yachting industry
- Forge links between tourism strategies with other sectors.
Priority Three
Transforming the Manufacturing Sector
Vision & Goals
The manufacturing sector is a major pillar of the economy of St. Kitts and Nevis. Over the past 30 years, it has been a consistent contributor to the domestic economy and the overall development of the country. In fact, manufacturing in the broadest sense has emerged as an important component of the overall economic activities of St. Kitts and Nevis.
Manufacturing Strategic Priorities
- Promoting the best practices and cutting-edge manufacturing industry standards
- Increasing the number of new businesses
- Providing pro-business equitable fiscal incentives
- Accelerating the graduation of the manufacturing sector
- Developing a highly trained workforce
- Developing a marketing strategy
- Encouraging manufacturing to adhere to sound environmental practices
- Ensuring equitable access to working capital
- Upgrading facilities at the Bureau of Standards
- Promoting collaboration among manufacturers
- Enhancing productivity through adaptation of alternative energy sources
Transforming the Agriculture Sector
Vision & Goals
The vision of the agriculture sector is to establish resilient and productive agri-food systems that contribute to economic growth and improve livelihoods, food security, and nutritional health by harnessing agricultural knowledge and innovation systems through sustainable management of ecosystems and biodiversity.
Crop Sub-Sector Goals
- Transform new and existing farms to be innovative and profitable agri-businesses
- Re-design training at all levels of the school curriculum and to new and existing farmers to increase the adoption of new technologies and increase efficiency
- Provide safe, affordable and stable food supplies for food and nutritional security
- Create sustainable and resilient farming systems capable of adapting to hazards and changing climate
Fishers Sub-Sector Goals
- Become self-sufficient in fish production with minimum importation by adapting Aquaculture
- Modernize the fishing sub-sector with infrastructural development, improving fishing methods
- Make fishing activities climate smart by growing fish in their natural environment in a highly sustainable and environmentally responsible way
- Ensure the food and nutritional security of the country
Livestock Sub-Sector Goals
- Move towards self-sufficiency in livestock production of the country and thereby reduce the import dependency of livestock products
- Contribute to the food and nutritional security of the citizens of Kitts and Nevis
- Strengthen synergetic relationships with other sectors, for example, agriculture, tourism, and fisheries
- Raise better quality livestock through pursuing better breeding programmes, based on research in such institutions as the Bayford Livestock Centre of Excellence, which has been relaunched
- Make livestock sector and sectoral development climate smart
Transforming the Financial Services Sector
Goals
- Utilize ICT more extensively to enhance the breadth and the depth of international financial services
- Strengthen the regulatory framework for financial services for increased efficiency and efficacy
- Undertake constant market research and foster innovative product development
- Develop capacities to enable the country to offer more complex financial services
Financial Services Sector Strategic Priorities
- Collaborating with regional partners to provide a consolidated package for financial service
- Improving customer care and services at every level of operation
- Using ICT more extensively to enhance the breadth and the depth of international financial services
- Strengthening the regulatory framework for financial services for increased efficiency and efficacy
- Undertaking constant market research and foster innovative product development
- Developing capacities to enable the country to offer more complex financial services
- Collaborating with regional partners to provide a consolidated package for financial services
Priority Four
Capitalising On Emerging Opportunities
The Digital Economy
Vision
Tourism is a major economic driver globally and has become a key sector for stimulating growth and development for the citizens of St. Kitts and Nevis. After the cessation of sugar production in 2005, the Government of St. Kitts and Nevis signalled its importance through the National Adaptation Strategy (NAS) 2006– 2013. The Sector has contributed significantly to promoting many areas in the economy such as Financial Services, Wholesale and Retail, Construction, Entertainment and Offshore Education. However, the sector is highly impacted by external and internal shocks therefore it is important to refocus the sector to maintain its relevance.
Goals
- Create an enabling environment for ICT and ICT-related expansion
- Modernize the information and communication infrastructure
- Develop human resources for the digital economy
- Leverage ICT with the activities of various productive sectors
- Ensure equitable participation of every citizen in the information society
The Digital Economy Strategic Priorities
- Providing support to small businesses
- Updating and implementing the Digital Transformation Strategy
- Modernizing the information and communication infrastructure
- Leveraging ICT with the activities of various productive sector
- Improving the Government’s e- platform for better citizens’ services
- Creating an enabling environment for ICT and ICT- related expansion
- Developing human resources for the digital economy
- Ensuring equitable participation of every citizen in the information society
The Blue Economy
Vision
The marine zoning and the wide-ranging Blue Economy are designed to work in tandem, enabling an integrated coastal zone management system that supports the development of the Blue Economy. The successful execution of the Blue Economy strategy requires a long-term strategic approach to physical and economic planning, which recognizes the integrated nature of the coastal and marine environment. In the context of the Blue Economy of St. Kitts and Nevis.
Goals
- Identify hot spots, areas where human activities most extensively interact with ecosystems to mitigate the effects.
- Prioritize investments in ecosystem-friendly services
- Avoid sub-optimal investments
The Blue Economy Strategic Priorities
- Developing initiatives for waste management in the marine and coastal environment
- Improving access to potable water (desalination)
- Strengthening land-based sources of pollution
- Supporting the development of land-based food sources in the agricultural sector;
- Improving the management of used water discharges (residential and commercial grey and black water)
- Creating awareness of the factors causing issues related to marine food security
- Promoting marine aquaculture
- Improving maritime transportation
- Installing of submarines cables and pipelines
The Creative Economy
Mission
Or vision is to create a world-class creative economy that is recognized for its innovation, unique talents, and cultural diversity. Through collaboration, engagement, and design thinking, we aim to build a dynamic, sustainable, and resilient creative ecosystem that enriches the lives of all creatives. We envision a future where our community is a hub of creativity, where artists and creative entrepreneurs can flourish, and where our cultural organizations are vibrant and viable.
Goals
- Encourage entrepreneurship through the promotion of the arts
- Develop a thriving entertainment industry
- Export entertainment
The Creative Economy Strategic Priorities
- Rebranding and Restructuring of Ministry
- Professionalizating and standardization of creative and culture industries
- Developing of National Creative/Cultural Policies and relevant legislature
- Revamping of National Creatives Registry
- Establishing of proper stakeholder relationships and partnerships
- Advancing of the skillset and professional development of human resources
- Enhancing of the existing and initiation of new art-education programs in primary, secondary and tertiary schools
- Preservating and Promotion of Intangible Cultural Heritage
- Undertaking digitization and creation of a Virtual Library of Cultural Archives
- Developing of thriving and sustainable creative arts programs
- Enhancing of cultural festivals (host & participatory), locally, regionally, & internationally
- Fostering growth and innovation in the creative economy sector
- Generating employment opportunities and increase the contribution of the creatives
- Campaigning for a Cultural Shift: Increase public awareness and understanding of the orange economy
- Promoting global expansion and market access for creative enterprises
- Generating accurate and insightful statistics through research and studies to inform evidence-based decision-making and facilitate the development of the creative economy
- Promoting integration and collaboration across sectors