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.

Read more about this topic:  Saint Kitts And Nevis

Famous quotes containing the word economy:

    “Quidquid luce fuit tenebris agit: but also the other way around. What we experience in dreams, so long as we experience it frequently, is in the end just as much a part of the total economy of our soul as anything we “really” experience: because of it we are richer or poorer, are sensitive to one need more or less, and are eventually guided a little by our dream-habits in broad daylight and even in the most cheerful moments occupying our waking spirit.”
    —Friedrich Nietzsche (1844–1900)

    “I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
    —Calvin Coolidge (1872–1933)

    “Even the poor student studies and is taught only political economy, while that economy of living which is synonymous with philosophy is not even sincerely professed in our colleges. The consequence is, that while he is reading Adam Smith, Ricardo, and Say, he runs his father in debt irretrievably.”
    —Henry David Thoreau (1817–1862)