The economy of Saint Kitts and Nevis is the smallest in the world, with a nominal GDP of US$1.2 billion as of 2020. It is an emerging economy that has seen steady growth over the past few decades, fueled by reforms to create a more open and business-friendly environment. Saint Kitts and Nevis’ main economic sectors are tourism, manufacturing, financial services and agriculture.
Tourism accounts for around 36% to GDP and employs around 19% of the workforce; it is mainly concentrated on cruise ship visits as well as ecotourism activities in national parks such as St. Kitts National Park. Manufacturing accounts for around 10% to GDP and employs around 5% of the workforce; it includes food processing, furniture manufacturing and construction materials manufacturing. Financial services account for around 15% to GDP and employ around 8% of the workforce; it includes banking services (9%) & insurance (6%). Agriculture accounts for around 2% to GDP and employs over 10% of the workforce; it is mainly concentrated on sugar cane production as well as plantain & banana production.
According to cheeroutdoor, Saint Kitts and Nevis has undertaken several reforms to attract foreign investment into key industries such as technology, tourism, agribusiness and financial services; these include tax incentives provided by the government to foreign investors as well as improved infrastructure to facilitate transportation between major cities in Saint Kitts & Nevis. In addition, Saint Kitts & Nevis has also opened up its markets by joining several global trade agreements such as CARICOM since 1981.
The business policy of Saint Kitts and Nevis, abbreviated as SKN by abbreviationfinder.org, aimed to make the country less dependent on sugar through a commitment to light industry and tourism. Agriculture is an important trade route. Sugar has traditionally been the most important sales product from agriculture. In recent years, the authorities have worked to differentiate agricultural production. Coconuts, cotton, yams, sweet potatoes, onions, peppers, peanuts (peanuts), bananas, etc. are now being cultivated. Fishing has become increasingly important. In addition to the sugar industry (raw sugar, ethanol), electrical components, food, beer and other beverages are manufactured.
Note: the capital city of Saint Kitts and Nevis is Basseterre (in Saint Kitts, with suburbs) with a population of 14,100 (2014). Other major cities include Charlestown (on Nevis) with a population of 2,200 (2011).
The tourism industry is growing, and has become very important for the country’s economy in recent years. A significant part of the tourists come with cruise ships.
According to COUNTRYAAH, Saint Kitts and Nevis have deficits both in the trade and balance of payments with abroad. Main export goods are machinery, food and electronics. Main import goods are machinery, foodstuffs and fuel. The United States is the most important trading partner. Otherwise, Ukraine, Canada, the United Kingdom and Trinidad and Tobago.
Transport and Communications
There is a small railway at Saint Kitts adjacent to the sugar industry. The deep water port in Basseterre is the country’s import and export port. Traffic between the islands is provided by a public boat service. International Airport at Basseterre, a smaller airport in Nevis provides some air traffic to the surrounding islands.