Saint Kitts and Nevis? economical and financial state has been affected by various factors positively and negatively. The nation has had its monetary issues in the past with stable economic development for four years. Yet, it has developed different sectors which have improved the economy. Further improvements will be needed, though, in order to maintain the guaranteed progress.
The Federation of Saint Kitts and Nevis is one of the quickest growing economies in the Eastern Caribbean with GDP of USD 765.9 million by 2013. It is a member of various organizations including the Eastern Caribbean Currency Union (ECCU) which requested in 2010, an arrangement with the surveillance of the IMF in a period of debt crisis following the Global
…show more content…
Kitts and Nevis has gathered momentum, with real GDP growing at an estimated 3.8 percent in 2013 reflecting a pickup in tourism, a strong expansion in construction activity related to large Citizenship-by-Investment (CBI) inflows, a substantial increase in public sector investment, and impetus from the People Employment Program (PEP). Preliminary data for 2013 shows wages increased by 10 percent while employment expanded by 19 percent, mainly reflecting the impact of the PEP. Inflation declined to 0.4 percent at end-2013, and continues to be low, at 0.1 percent at end-March 2014 (y/y). The financial system is stable although the recovery in economic activity has not yet translated into increased lending to the private sector, as banks remain cautious. The external position continues to benefit from the recovery in tourism receipts and a strong increase in CBI inflows. These first quarter results suggest that the fiscal targets for the remainder of 2014 are achievable with continued policy efforts to contain government employment, and consequently, the public sector wage bill, as well as spending, while continuing to strengthen revenue collections. Progress was made on structural reforms. Public debt, which was at 164 percent of GDP in 2010, has been reduced to 104 percent of GDP at end-2013 and is on the path to reach the ECCU target of 60 percent of GDP by 2020. The fiscal balance went from a deficit of 7.8 percent of GDP to a surplus of 12.2 …show more content…
(n.d.). Retrieved March 10, 2016, from http://www.commonwealthofnations.org/sectors-st_kitts_and_nevis/business/industry_and_manufacturing/
"Press Release: IMF Executive Board Concludes Ex Post Evaluation of the 2011 Stand-by Arrangement with St. Kitts and Nevis." N.p., 29 Oct. 2015. [Accessed: 10 March 2016]
"Find Industry and Manufacturing Expertise in St Kitts and Nevis." Common Wealth Network. (n.d.). Retrieved March 10, 2016, from http://www.commonwealthofnations.org/sectors-st_kitts_and_nevis/business/industry_and_manufacturing/
"2015 Investment Climate Statement - Saint Kitts and Nevis." U.S. Department of State. U.S. Department of State, May 2015. [Accessed: 11 March 2016]
Jonelle, W. (2015, May). 2015 Investment Climate Statement - Saint Kitts and Nevis. Retrieved March 8, 2016, from http://www.state.gov/e/eb/rls/othr/ics/2015/241718.htm
Press Release: St. Kitts and Nevis Repays Early Some Outstanding Obligations to the IMF. (2015, January). Retrieved March 11, 2016, from http://www.imf.org/external/np/sec/pr/2015/pr1521.htm
Press Release: IMF and St. Kitts and Nevis Organize Fourth Regional Caribbean Forum Focusing on ?Financing Growth?. (August 31). Retrieved March 12, 2016, from
Indicators. United Nations, 7 July 2011. Web. 16 Nov. 2011. This data sheet shows the
A balanced stance on fiscal policy was targeted by the Government in response to the global recession between short and long-term policies. These measures involved bonus payments to low and middle-income Australians to insta...
As a result of the Great Recession of 2007 to 2009, the United States government implemented various fiscal policies in an effort to stimulate the economy. How the government responded as well as how those responses will affect the U.S. economy into the future are the focus of a proposed research study. In order to ensure an appropriate focus for the proposed research study, problems in existing literature must be evaluated.
In today’s economy, fiscal policy plays a vital role in influencing the financial direction and economic goals of the United States. Furthermore, government spending and taxation are two main economic activities that influence a nation’s economy and are generally referred to as the fiscal policy. Not only does the fiscal policy help determine a nation’s budget, but it also determines how much resources need to be allocated to help achieve their economic goal. Therefore, the fiscal policy has many functions and consists of allocating, distributing, stabilizing and developing the nation’s economy.
The United States of America, much to people’s surprise, is still an active imperial power to this day. Aside from the more recent excursions to the Middle East, the U.S. has been actively generating income from the various resources found in the Caribbean Island regions since the late Nineteenth Century. Whether its through the growing of cash crops, the target of illegal arms trafficking, or used as a tropical playground for the wealthy, The Caribbean Islands will continue to be subjected to the powerful influence of the United States economy.
A way to measure a country’s economy is to look at its gross domestic products. This tells the total value of the goods and services that a country produces. In Jamaica, the economy has always been the main problem for the people. It is based primarily on agriculture, tourism, and bauxite mining. The country is very dependent upon tourism, its main source of foreign exchange. Bauxite mining is the principal source of revenue for the country. Most people do not have the opportunity to go to school and also there are not enough jobs for everybody. On the contrary, the United States is wealthiest in terms of economy. They have abundant natural resources, a well-developed infrastructure, and high productivity. Moreover, people have more chances of going to school, and there are more job opportunities for those who graduate as
The reduction of government role in the economy will affect fiscal policy by decreasing deficit spending a...
The Web. 11 Mar. 2014. The 'Standard' of the 'Standard'. http://policydialogue.org/files/publications/The_Latin_American_Debt_Crisis_in_Historical_Perspective_Jos_Antonio_Ocampo.pdf>. Pastor, Manuel, Jr. "Latin America, the Debt Crisis, and the International Monetary Fund.
The IMF plays a pivotal role in the international economy system. As its initial goal about reconstructs world’s international payment system, such as contributes to surveillance of the global economy, to stabilize exchange rates, to lend money to help countries to resolve emergency situation but with certain conditions and should pay back in a short time. The IMF has done a large number of things to help the world economy, not only in the western countries, but in many developing countries as well.
the effect that the work of the IMF and the World Bank have had on the
The IMF was created at the end of WWII in order to create a framework for global economic cooperation without creating a second Great Depression. Since its creation it has evolved to tackle a variety of economic issues. The goal of the IMF is to help the governments of member countries “take advantage of the opportunities- and manage the challenges- posed by globalization and economic development more generally.” It tracks global economic trends and performance, alerts member countries of potential problems, provides of forum to discuss policy, and helps governments in times of economic hardship. It provides policy advice and financing to member countries suffering from economic adversity. Additionally, it aims to create...
The IMF was established to promote internal monetary cooperation through a permanent institution, which provides the machinery for consultation and collaboration on international monetary problems. Also, it provides temporary financial assistance to countries under adequate safeguards to help ease balance of payments adjustments. In addition, it facilitates the expansion and balanced growth of internal trade.
What makes economic growth so interesting is that it enables a country to do so much more than they are financially capable of to date, through economic growth a country can also help to lower the countries deficit. To date The Bahamas government have invested millions of dollars into the economy such as new roads and highways, schools, hospitals, hotels etc. If an economy makes an investment it is to improve and encourage growth within their economy. In my opinion economic growth is beneficial to any economy although there are a number of hurdles that must be crossed to really feel and see the economic growth. This research paper is to enable a better understanding of the economic growth and how The Bahamas has grown and investments that they have made to sustain the economies developments.
Integration provides a larger market for member states (Development Paths in the Caribbean). Integration schemes deliver numerous benefits to Caribbean countries; these schemes “go beyond” the capacity of CARICOM. Hence, CARICOM has stated that in order to increase influence, Caribbean countries need to work together (CARICOM). Developed countries are uniting to increase their productivity at different levels (International Monetary Fund). It is evident that developing countries are experiencing rapid growth, and rapid growth demands additional resources. In May 2016, directors of the IMF encouraged the authorities of Guyana “to move toward greater economic diversification by advancing reforms to promote competition and improve the business climate’ (International Monetary Fund). Another country confronting similar conditions is Belize. Belize has been vulnerable to adverse shocks mainly because of its weak external strategies. The country’s limited resources keep the country stopping its economic growth. The Amandala reported the Leader of the Opposition comments “The government has mismanaged the economy. Shrimp is down, banana..,sugar…payaya is down. Our foreign currency is running out; last year it went down by around $150 million”(Goodin 55). Thus, local Caribbean governments are pressured to revolutionize strategies to maximize
The national budget is the main instrument through which governments collect resources from the economy, in a sufficient and appropriate manner; and allocate and use those resources responsively, efficiently and effectively (Todorovic & Djordjevic, 2009). The work of public budget has increased extremely more complicated, abstruse and worrying (Hou, 2006, p.730).