The Eastern Caribbean Central Bank’s update to the 2025 Economic and Financial Reviews (EFRs) presents a mixed economic picture for St. Kitts and Nevis, with modest growth in 2025 alongside mounting fiscal pressures.

The Economic Snapshot shows real GDP growth of 2.1 per cent, supported by tourism and capital investment, while inflation eased to 0.9 per cent. Visitor arrivals surpassed one million, reaching 1,068,382. Construction was the largest contributor to GDP at 15.3 per cent.

However, the overall fiscal deficit widened to 12.8 per cent of GDP, while the debt-to-GDP ratio stood at 54.5 per cent. The ECCB warns that without fiscal adjustment, debt could rise significantly over the medium term.

In response, the Bank recommends reforming the Citizenship by Investment programme to strengthen revenues, reviewing discretionary social transfers, tax holidays and subsidies, and aligning fiscal policy with the 60 per cent debt target by 2035.

The ECCB also calls for greater investment in digital, artificial intelligence, green and blue-economy skills; the establishment of a tourism enhancement fund and tourism innovation centre; and accelerated implementation of the Sustainable Island State Agenda and the ECCB’s “Big Push” initiatives.

Together, the recommendations aim to strengthen fiscal sustainability while creating a more resilient and competitive economy.