Prime Minister, the Hon. Dr. Terrance Drew, continues to champion St. Kitts and Nevis’ forward-looking vision for sustainable growth, particularly through the reform and continued success of the nation’s Citizenship by Investment (CBI) Programme.
His participation in the Forty-Eighth Regular Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) held in Barbados from 20 to 22 February 2025, underscored the nation’s commitment to regional collaboration and climate action, as well as showcasing the strategic importance of the CBI Programme in shaping the economic future of the Federation.
While St. Kitts and Nevis’ broader development initiatives—including sustainable energy, healthcare, security, and regional food security—were discussed at CARICOM, it was the recent positive findings from the International Monetary Fund (IMF) report that garnered significant attention.
After conducting a thorough review of the Federation’s economic position, the IMF praised St. Kitts and Nevis for its proactive reforms to the CBI Programme and its efforts to create a more sustainable fiscal future.
IMF’S POSITIVE ASSESSMENT OF ST. KITTS AND NEVIS’ ECONOMIC OUTLOOK
The IMF’s recent review of St. Kitts and Nevis has provided a confident projection for the country’s economic trajectory.
The report forecasts economic growth of 2 per cent in 2025, a slight increase from the 1.5 per cent growth in 2023.
The IMF credits the recovery of tourism and the nation’s transition toward renewable energy as key drivers of this growth.
Importantly, inflation is expected to remain stable at around 2 per cent.
In its analysis, the IMF highlighted the substantial progress made by the Federation in its efforts to diversify its economy.
“Progress has been made in the transition to renewable energy, with the geothermal project nearing the drilling phase and funding secured,” the report noted, emphasising St. Kitts and Nevis’ growing leadership in the renewable energy sector.
The IMF also recognised the structural reforms the Government has implemented to ensure the sustainability of the CBI Programme.
CBI REFORMS: A KEY FACTOR IN ECONOMIC SUSTAINABILITY
Central to the IMF’s assessment is its acknowledgment of the significant reforms to St. Kitts and Nevis’ CBI Programme.
The Federation has undertaken comprehensive changes to improve the transparency and sustainability of the Programme, addressing previous concerns about inflows and ensuring that revenue generation remains stable for the long term.
The IMF’s positive outlook is a direct reflection of these reforms, which are designed to diversify sources of revenue and ensure that CBI proceeds are used responsibly to support national development priorities.
One of the most significant steps in this direction is the planned establishment of a Sovereign Wealth Fund (SWF).
This fund will absorb any excess CBI revenue, reducing the impact of volatile inflows and creating fiscal buffers to withstand external shocks such as natural disasters.
In its concluding remarks, the IMF praised the Government’s efforts to improve transparency within the CBI Programme.
It recommended that comprehensive annual reports following external audits be published regularly, with detailed statistics on applications and financial accounts, to further strengthen trust in the Programme’s integrity.
PRIME MINISTER DREW’S COMMITMENT TO SUSTAINABLE DEVELOPMENT
Prime Minister Dr. Terrance Drew’s leadership at CARICOM, combined with the positive IMF findings, reflects a clear vision for St. Kitts and Nevis as a model for sustainable development.
Leading into the meeting, Prime Minister Dr. Terrance Drew highlighted five critical focus areas:
- Health and Human Development
- Security
- Energy
- the Global Sustainable Islands Summit, and
- the ‘25 by 2025’ initiative.
Each of these focus areas align with the Government’s vision for sustainable growth and development for St. Kitts and Nevis.
A FUTURE-READY ECONOMY
Looking ahead, the IMF projects that the Federation will see modest fiscal improvements, with the fiscal deficit expected to decrease to 9 per cent of GDP in 2025.
This decrease will be influenced by the Government’s strategic fiscal management, including an increase in the public wage bill and a temporary reduction in Value-Added Tax (VAT).
Prime Minister Drew’s Government is actively working to position St. Kitts and Nevis as a global leader in sustainable development, and the positive feedback from the IMF signals that the reforms being implemented—particularly those related to the CBI Programme—are on the right track.
With these strategic initiatives in place, the country is well-positioned to meet future challenges while continuing to serve as an example of fiscal prudence and environmental leadership within the Caribbean region.
A STRONG FOUNDATION FOR FUTURE GROWTH
The Government’s commitment to making the CBI Programme more sustainable, transparent, and effective ensures that it will continue to contribute significantly to the Federation’s economy.
With strong leadership from Prime Minister Dr. Terrance Drew, St. Kitts and Nevis is on a solid path toward a more prosperous, sustainable, and resilient future, both regionally and globally.
As the Federation continues to work with CARICOM member states to address pressing regional issues, the successful reforms to the CBI Programme underscore the Government’s ability to balance economic growth with fiscal responsibility, paving the way for St. Kitts and Nevis to emerge as a leader in sustainable development in the Caribbean.
TRANSFORMATIONAL LEADERSHIP AT THE CIU: CHAIRMAN ST. JUSTE’S 100 DAYS OF REFORM
As the Government continues its focus on sustainable growth and development, the leadership of Chairman St. Juste and his team at the Citizenship by Investment Unit (CIU) has played a pivotal role in transforming the CBI Programme.
In just 100 days in office, Chairman St. Juste has overseen significant reforms and operational changes aimed at enhancing the Programme’s transparency, efficiency, and long-term viability.
Under his leadership, the Unit has implemented new measures that align with international best practices, ensuring that the CBI Programme remains a critical driver of economic growth while addressing past concerns regarding governance.
The transformation within the CIU is evident in the strengthened focus on compliance and the establishment of rigorous audit protocols.
These efforts reflect the Government’s commitment to building a robust and sustainable economic foundation, which will benefit the Federation for years to come.