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WASHINGTON, DC – February 13, 2025: Officials from the International Monetary Fund (IMF) are currently in St. Kitts and Nevis conducting their annual Article IV consultation, assessing the country’s economic performance and outlook.

Following moderate economic growth in 2024, the IMF has projected that St. Kitts and Nevis will experience similar growth in 2025, with no significant improvement anticipated.

“An IMF staff team will go on an Article IV mission next week, after which they will provide an update on the economic outlook for St. Kitts and Nevis,” the IMF told SKNVibes News. “Overall, St. Kitts and Nevis growth is projected to remain moderate in 2025 and 2026.”

The Fund attributed this moderate outlook to the ongoing expansion of renewable energy projects and a full recovery in the tourism sector, which has returned to pre-pandemic levels.

Despite the modest growth forecast, the IMF acknowledged signs of resilience as the Federation continues to recover from global geopolitical challenges. The government’s ongoing efforts to reduce economic reliance on the Citizenship by Investment (CBI) programme—historically responsible for 40-65% of government revenue—are seen as a key step in diversifying the economy.

The government has placed a strong emphasis on renewable energy as part of its strategy to build a more sustainable economic future.

The IMF also predicts moderate growth across the Caribbean region over the next two years, with its World Economic Outlook (WEO) forecasting economic expansion across Latin America and the Caribbean.

Julie Kozack, the IMF’s Director of Communication, provided additional insights into regional performance at a recent press conference. “Following the rapid recovery after the pandemic, real GDP growth in the region has normalized in recent years,” she explained. “Average GDP growth for the region—excluding Guyana and Haiti—is estimated at 2.2 percent for 2023, 2.4 percent for 2024, and is projected to remain relatively stable at 2.4 percent in 2025.”

Kozack further broke down regional trends:

• Tourism-dependent economies: Growth has slowed as tourism arrivals have returned to pre-pandemic levels.
• Commodity-exporting economies: These countries have faced challenges in the energy sector but have seen strong performance in non-energy industries, supported by favorable economic policies.

On inflation, Kozack confirmed that it has “moderated significantly over the past few years” due to lower global commodity prices and the easing of supply chain disruptions.

As St. Kitts and Nevis continues its diversification efforts, moderate growth is expected to remain the economic theme for 2025.