BASSETERRE, St. Kitts, CMC – A senior public servant on Wednesday predicted that the St. Kitts and Nevis economy will record steady growth next year, setting the stage for continued expansion over the medium term.
“As we look ahead to the end of fiscal year 2025, our nation’s economy is forecasted to grow by 1.1 per cent. This tempered growth reflects the tapering of our post-pandemic recovery and signals a return to pre-COVID levels of economic activity,” said the acting Financial Secretary, Carlton Pogson
“While the pace may be modest, it marks a stabilizing foundation upon which we can build,” Pogson told the Budget 2026 National Forum, held under the theme “Turning Conversations into Action: Building Our Sustainable Island State Together”.
He told the event that the local economy continues to strengthen, supported by sound fiscal management, prudent public investment, and the resilience of key sectors.
“Inflation has declined significantly from a high of 2.7 per cent and 3.6 per cent in 2022 and 2023, respectively, to a modest one per cent in 2024 and 0.6 per cent up to August 2025,” said Pogson.
“The medium-term outlook, spanning 2026 to 2030, is more encouraging. We anticipate average annual growth of approximately 2.5 per cent, with gross domestic product (GDP) projected to reach EC$2.7 billion (One EC dollar = 0.37 cents) by the end of the decade. This growth is expected to be broad-based, with expansion across every sector and subsector of our economy.”
While optimistic about the Federation’s economic growth, Pogson cautioned that external and domestic challenges could affect growth.
He said these include geopolitical tensions in Europe and the Middle East, emerging strains between the United States and Venezuela, a slowdown in global economic activity, potential delays in major local construction projects, and the increasing threat of severe weather events due to climate change.
But the acting Finance Secretary said that despite these risks, sectoral performance will be central to achieving long-term prosperity.
The agriculture and fishing sectors, though currently representing just 1.2 per cent of GDP, are projected to expand at 6.8 per cent annually as the nation pursues food security and deeper linkages with the tourism industry.
The construction sector, which contributes 13.5 per cent to GDP, is expected to maintain steady annual growth of 2.3 per cent, spurred by both public and private infrastructure developments in housing, education, healthcare, and tourism.
Similarly, the hotels and restaurants sector, a key driver of foreign exchange, will grow by two per cent per annum, supported by expanded airlift and robust destination marketing.
Pogson said that service-related sectors, such as financial services, transportation, real estate, and public administration, will continue to underpin economic activity, ensuring the Federation’s growth remains inclusive and sustainable.
Participants at today’s forum include Trevor Blake, President of the St. Kitts and Nevis Chamber of Industry and Commerce, and Aquanjé Robinson, executive research officer in the Ministry of Environment, Climate Action and Constituency Empowerment.
and then 