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BASSETERRE, St. Kitts – The International Monetary Fund (IMF) has issued a stark warning to St. Kitts and Nevis in its latest Country Review Report W025, painting a grim picture of the federation’s economic health as fiscal deficits balloon and public debt spirals out of control.

According to the report, the current account deficit surged to 15% of GDP in 2024, up from 12% in 2023, driven by a sharp decline in Citizenship-by-Investment (CBI) inflows and unchecked government spending. The IMF cautioned that the alarming trend signals a deepening crisis, echoing warnings made in previous years about the country’s heavy reliance on the volatile CBI programme.

The fiscal deficit reached a staggering 11% of GDP in 2024, the highest in recent years, largely attributed to the steep drop in CBI revenue. The IMF projects a slight moderation to 9% in 2025, but insists the underlying vulnerabilities persist, threatening long-term economic stability.

Perhaps most alarming is the report’s projection of public debt skyrocketing to 61% of GDP in 2024, with forecasts indicating a further climb to 68% by 2030 if corrective measures are not implemented urgently. This marks a dramatic reversal for the federation, which had previously celebrated debt sustainability milestones.

The IMF’s assessment calls for immediate fiscal consolidation, enhanced revenue diversification, and comprehensive public sector reforms to stave off a full-blown economic crisis.

As pressure mounts on the government to address the growing fiscal turmoil, questions loom over the administration’s ability to stabilize the economy without the once-reliable CBI cash injections.