construction and tourism sector activity and their favorable spillovers on the rest of the economy, supported by surging inflows from its Citizenship-by-Investment (CBI) program. Large CBI inflows continued in 2015, albeit at a slower pace, reflecting the temporary impact of the program reform and increased competition from similar programs in the region. Consumer price inflation turned negative, owing to lower global commodity prices and recent VAT and Import Duty exemptions on food items that carry a large weight in the CPI basket. The banking system remained broadly
Context 1. St. Kitts and Nevis continues to enjoy broadly favorable macroeconomic developments . Over 2013–2015, the country recorded the strongest growth and fiscal results in the region, supported by surging inflows from its Citizenship-by-Investment (CBI) program that facilitated accumulation of substantial fiscal buffers. Under their home-grown program that concluded in July 2014, the authorities implemented substantial fiscal consolidation measures and a major debt restructuring, including an innovative debt-land swap with domestic banks that helped
This 2016 Article IV Consultation highlights that economy of St. Kitts and Nevis continued its strong growth at about 5 percent, recording the strongest growth in the region during 2013-15. Strong growth has been underpinned by construction and tourism sector activity and their favorable spillovers on the rest of the economy, supported by surging inflows from its Citizenship-by-Investment (CBI) program. Large CBI inflows continued in 2015, albeit at a slower pace. The medium-term outlook is positive, but remains dependent on developments in CBI inflows. Growth is expected to moderate to 3.5 percent in 2016 and 3 percent, on average, over the medium term.
are f aced with growing fiscal costs of natural disasters and climate change, how to enhance revenue collections without hurting competitiveness becomes a key policy challenge. 4. A similar competition also exists among the five Eastern Caribbean Currency Union (ECCU) countries that offer the citizenship-by -investment (CBIs) programs. 3 The CBIs give foreign high-net-worth individuals opportunities to obtain citizenship or residency in the respective ECCU countries in exchange for financial contributions to the domestic e con om y . Following substantial