Published 20 July 2017, 2017
Buckie Got It, St. Kitts and Nevis News.
Slumping St. Kitts-Nevis economy brings hardship; residents, business people feeling the squeeze
BASSETERRE, ST. KITTS, JULY 20TH 2017 – The slump in the St. Kitts and Nevis economy over the past two years is causing increased hardship in the twin-island Federation.
Gross Domestic Product has shrunk from seven percent in 2014 to a projected three percent in 2017 and 2018.
The media in the Caribbean quotes the Washington-based International Monetary Fund (IMF) in its Article IV Consultation as stating that the slump in economic performance of St. Kitts and Nevis is a result of a decrease in Citizenship-By-Investment (CBI) receipts, a deceleration in tourism-linked sectors, a contraction in manufacturing output, a narrowing of the overall fiscal surplus and a significant widening of the current account deficit.
Wednesday, the St. Kitts-Nevis Labour Party (SKNLP) caretaker for St. Christopher 5, Dr. Terrance Drew said the poor state of the economy is evidenced by the deterioration in the standard of living once enjoyed under the Denzil L. Douglas Labour Party Administration, which lost the February 2015 General Election.
Over 2000 persons have been sent home from the closure of the Peoples Empowerment Programme (PEP) which has been replaced with the STEP programme.
“Many young people were laid off and the unemployed are having difficulty finding jobs as there are hardly any new ones. They cannot provide for their family and themselves. The economic hardship can be heard from persons who complain of their inability to buy sugar and rice,” said Dr. Drew, adding: “The indigents, the poor, the middle class and even the businesses are feeling the squeeze.”
The Cuban and U.S. trained physician said further evidence by the poor economy can be measured by the long child maintenance lines and Debtors Court at the Magistrate’s Court.
Dr. Drew said the rampant victimisation policy of the Team Unity Government of Prime Minister has also had an economic impact of scores of victims.
West Basseterre Member of Parliament Hon. Konris Maynard accused Prime Minister and Minister of Finance, Dr. Timothy Harris and his Team Unity government of giving a false impression to the country that the economy is rosy and doing well.
“There are people out there who are in the streets, who have businesses and who are saying ‘No Mr. PM, stop pretending that the economy is good. Do what you have to do and inform the public that things may even get worse so that we will be in a position to deal with the economic shocks that are anticipated,” said Maynard, who also pointed to the latest IMF Report of a decrease in CBI receipts, a deceleration in tourism-linked sectors, a contraction in manufacturing output, a narrowing of the overall fiscal surplus and a significant widening of the current account deficit.
“Since this government has taken office, the economy has not been growing faster. It has slowed and has declined and the economists say the decline will continue,” said Maynard.
“The deterioration in the economy is evident from the complaints by the people on the streets, the business community, bus drivers, taxi operators, contractors, hoteliers, restaurateurs. All they are saying the economy is on a downward trajectory,” said former Deputy Prime Minister and Deputy Political Leader of the SKNLP, Dr. Earl Asim Martin.
Last week a local businesswoman called on Prime Minister, Minister of Finance and National Security Harris to come clean on the state of the economy and high level of criminal activity.
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Photo 1 – Dr. Terrance Drew
Photo 2 – MP Konris Maynard
Photo 3 – Dr. Earl Asim Martin
Photo 4- Dr, Timothy Harris
