St. Kitts – Nevis records EC $19.1 Million Surplus In 2007

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Budget Surplus Recorded For St. Kitts – Nevis

Basseterre, St. Kitts – Nevis
December 16, 2008 (CUOPM)

St. Kitts and Nevis registered a surplus of EC$19.4 million or 1.4 percent of GDP in 2007.

This was disclosed Tuesday by Minister of Finance, Dr. the Hon. Timothy Harris as he delivered the 2009 Budget Address in the National Assembly.

He said that the Current Account deficit increased by 31.6 percent to $297.8 million or 21.6 percent of GDP at market prices.

“This increase in the deficit was mainly attributed to outflows in respect to the importation of merchandise for construction to facilitate the upsurge in activity in that sector for the period under review and activity in the Distributive Trade Sector, while the export of goods remained relatively unchanged,” said Dr. Harris.

He reported that the Capital and Financial Account recorded a surplus of 14.1 percent totalling $317.1 million or 22.9 percent of GDP) in 2007.

Dr. Harris said that the major contributor to this increase is net Foreign Direct Investment, which grew by 42.7 percent to $425.3 million or 30.8 percent of GDP.

“The increase in net Foreign Direct Investment is significant as it highlights the confidence in our socio- and macro- economic fundamentals. In the final analysis, the surplus on the Capital and Financial Accounts was enough to cover the deficit recorded on the Current Account, therefore registering a surplus on the Balance of Payments of $19.4 million or 1.4% of GDP,” said the Minister of Finance, in delivering his first Budget Address since assuming the portfolio in August this year.

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