Saint Kitts and Nevis is expected to record slower economic growth in 2026, reflecting broader challenges facing Latin America and the Caribbean, according to the Economic Commission for Latin America and the Caribbean (ECLAC) 2026 Economic Survey.

The federation’s economy grew by an estimated 2.7% in 2025, but ECLAC projects growth to ease to 2.0% in 2026 before recovering modestly to 2.5% in 2027.

The outlook comes as the region confronts heightened geopolitical tensions, volatile energy markets, tighter financing conditions and weaker global growth. ECLAC projects regional growth of 2.2% in 2026, underscoring what it describes as a persistent “low capacity for growth” trap.

For Saint Kitts and Nevis, the regional picture highlights the importance of strengthening investment and productivity. ECLAC identifies weak investment, low productivity and high informality as structural barriers to stronger, more inclusive growth across the region.

As the country navigates an increasingly uncertain global economy, ECLAC’s findings underscore the need for policies that strengthen local businesses, encourage innovation, expand access to financing and create more formal, higher-quality jobs.