Nevis Economy
It is no secret that the United Sates economy is in a recession and many people are doing the best they can just to get by. So, many might be wondering of wonderful Nevis Island is experiencing the same hardships.
Well, the statistics are a bit outdated, but as one could imagine, they too are experiencing some downfalls in their economy. However, many people do see a prosperous future! Due to the fact that this is a tourist based Caribbean Island, like the many others, they have seen a bit less visitors, especially from the states. As many people who usually visit, now cannot, Nevis has seen a bit of a cut back in tourism.
This is why many Nevis Resorts and Nevis Hotels are offering special package deals. To help in cutting the cost of taking a Nevis Vacation. It makes sense, and many people have reaped the benefits.
Another huge set back for Nevis could be pointed at the hurricanes that prevail pretty much every year. The Nevis Four Seasons Resort has had numerous repairs, costing millions of dollars. Even though hurricane season may do some damage, they always rebound and better themselves for island visitors to enjoy.
Even though they have seen hard times, Caribbean Net News reported that the St. Kitts and Nevis economy is well placed to achieve strong growth in medium term. “The Washington-based International Monetary Fund (IMF) said Monday that while the global downturn and heavy debt burden are likely to weigh heavily on near-term growth, the economy of St. Kitts and Nevis is well placed to achieve strong growth over the medium term provided that the authorities continue to implement appropriate policies and press ahead with the reform agenda.”
The IGM also said:
Risks to the outlook are clearly on the downside, as strains from the global crisis have become increasingly evident in the local financial system, including through extensive cross-border linkages with the troubled CL Financial Group. Higher food and fuel prices led to a pick-up in inflation in the first ten months of 2008, peaking in October 2008 at 8.3 percent before moderating to 7.6 percent at end-2008. Inflation is projected to ease further in 2009 on the back of lower oil prices.However, the primary surplus is projected to decline to 2½ percent of GDP in 2009, largely due to an expected drop in revenues without concomitant cuts in expenditures, and the debt ratio is expected to trend up again. With a debt ratio at more than 175 percent of GDP by end-2008, debt service comprises nearly a quarter of government revenues, leaving no space for fiscal policy to respond to the adverse shocks.
Fiscal consolidation will be important not only for restoring debt sustainability, but also for supporting competitiveness, maintaining stability, and underpinning the Eastern Caribbean Currency Union (ECCU) quasi-currency board arrangement.
Moreover, should the global slowdown be prolonged, the adverse impact could spread to the banking sector through a rise in nonperforming loans. The insurance sector, meanwhile, is grappling with the fallout of CL Financial Group’s problems.
The U.S. Dept. Of State Website gives some insight to the Nevis Economy.
You can read up on some other Nevis Economy facts from Wikipedia.
Nevis Lover ~ Becca Briley 
