Tourism Helped St Kitts-Nevis´ Economy Grow by 4 % in 2004

The economy in St. Kitts and Nevis expanded nearly four percent in 2004, according to the Barbados-based Caribbean Development Bank (CDB) which said that the expansion of the real GDP in St. Kitts and Nevis can be attributed to strong performances in tourism, transportation and communication.

Tourism was the main driving force, supported by construction and to a lesser extent financial services, manufacturing and agriculture. These developments occurred within the context of only slightly higher inflation levels, as the effects of rising oil prices appeared to have been limited, the CDB said in a statement.

Related to the rise in real sector activity, it said, was an increase in Government revenue, and this coupled with relatively slower growth in current expenditure led to an increase in savings.

Preliminary estimates suggest the economies recording the highest growth rates in the Caribbean were Anguilla (12 percent), Trinidad & Tobago (6.7 percent), Antigua & Barbuda (5.1 percent) and Belize (between 4.0 percent and 5.0 percent).

Anguilla, the fastest growing economy, benefited from increased tourism activity and growth in the construction sector while petroleum and petrochemical operations dominated output in Trinidad & Tobago. Tourism also contributed to the improved performances in Antigua & Barbuda and Belize.