Manufacturing Sector Key Contributor To Economic Success Of St. Kitts And Nevis Despite COVID-19 Challenges

• The manufacturing sector continues to be a key contributor to the economic success of St. Kitts and Nevis despite COVID-19 challenges, said Prime Minister, Dr. the Honourable Timothy Harris, during his monthly press conference held at the National Emergency Management Agency (NEMA) Conference Room on September 28. 
• The manufacturing and export sectors in St. Kitts and Nevis are on the rebound as global economic activity picks up following the slowdown caused by the COVID-19 Pandemic. 
• “Entities such as JARO Limited, Carib Brewery (St. Kitts & Nevis) Limited, Kajola Kristada Limited and API Harowe (St. Kitts) are contributing to GDP in real terms in spite of COVID-19 challenges,” said Prime Minister Harris. “A look at the manufacturing sector shows that this sector has been resilient. It has created direct employment for over 1,200 persons. 
• After contracting by 18.7% in 2020, the IMF is projecting a narrower contraction of 2.0% for the economy in 2021 due to the severe impact that the pandemic has on the tourism sector. 
• However, rebound in tourism should prompt a strong recovery from 2022 onward, with the pre-pandemic GDP level expected to be reached in 2024. However, the recovery path could be derailed should the pandemic impose sustained disruptions on the anticipated pace of tourism inflows and domestic activity. Other risks include financial sector uncertainties, natural disasters, and lower-than-expected Citizenship by Investment (CBI) receipts. 
• As the recovery takes hold, the IMF expects policy focus will shift to rebuilding fiscal buffers by resuming to save part of the CBI revenues, preparing the financial system for exit from the temporary support measures and pursuing structural reforms to support productivity, economic competitiveness, and human capital.

(Source: SKN Vibes & IMF)