Saint Kitts and Nevis - Economy

Economy

Main article: Economy of Saint Kitts and Nevis

Saint Kitts and Nevis is a twin-island federation whose economy is characterised by its dominant tourism, agriculture and light manufacturing industries. Sugar was the primary export from the 1640s on, but rising production costs, low world market prices, and the government's efforts to reduce dependence on it have led to a growing diversification of the agricultural sector. In 2005, the government decided to close down the state-owned sugar company, which had experienced losses and was a significant contributor to the fiscal deficit.

Former sugar plantations still dominate the St. Kitts landscape, however many of the cane fields are being burned to make room for land development, especially on the northern side of the island, in the parishes of Saint John Capisterre and Christchurch. The agricultural, tourism, export-oriented manufacturing, and offshore-banking sectors are being developed and are now taking larger roles in the country's economy. The growth of the tourism sector has become the main foreign exchange earner for Saint Kitts and Nevis. The country has also developed a successful apparel assembly industry and one of the largest electronics assembly industries in the Caribbean.

St. Kitts is dependent on tourism to drive its economy. Tourism to the island has been expanding since 1978. In 2009 there were 587,479 arrivals to Saint Kitts compared to 379,473 in 2007. This growth represents an increase of just under 40% in a 2 year period. As tourism grows the demand for vacation property increases in conjunction.

St Kitts & Nevis also acquires foreign direct investment from their citizenship by investment program, outlined in their Citizenship Act of 1984. Interested parties can acquire Citizenship if they pass the government's background checks and make an investment into an approved real estate development.

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