IMF: Economy Solid Despite CBI Revenue Drop

BASSETERRE — St. Kitts and Nevis’ economy remains fiscally solid despite falling revenue from the Citizenship by Investment program, Cabinet Secretary Dr. Marcus Natta said Monday, citing a mid-year assessment presented to Cabinet by the International Monetary Fund.

Speaking at a Post-Cabinet Briefing on July 27, Natta said the IMF team, led by Jongsoon Shin, Deputy Division Chief at the Fund, delivered its findings directly to Cabinet.

“The Cabinet received a presentation from the International Monetary Fund on its half-year assessment of the economy of St. Kitts and Nevis, led by Jongsoon Shin, Deputy Division Chief at the International Monetary Fund. The overall assessment found that the Federation’s fiscal position remains solid overall even amid lower Citizenship by Investment revenue. Tax revenue has held in line with prior years, and current expenditure, including payroll, goods and services, and transfers, has stayed well contained despite recent oil price shocks and associated policy support measures,” Dr. Natta said.

The Cabinet Secretary said the IMF also flagged emerging risks that require monitoring. Those include contingent liabilities tied to the Social Security Board and public enterprises such as the Development Bank, as well as possible spillover effects from ongoing geopolitical tensions.

“The IMF’s overarching message to Cabinet was that fiscal consolidation is essential to stabilize debt, rebuild fiscal buffers, and reduce these vulnerabilities and risks going forward,” Natta said.

The Citizenship by Investment program has long been a major revenue source for the Federation, and the decline noted by the IMF adds to ongoing government efforts to diversify state income.