Basseterre, Saint Kitts, October 29, 2025 (SKNIS): The economy of Saint Kitts and Nevis is projected to record steady growth in 2026, setting the stage for continued expansion over the medium term.
This outlook was presented by Acting Financial Secretary, Mr. Carlton Pogson, during the Budget 2026 National Forum held at the St. Kitts Marriott Resort on Wednesday, October 29, 2025, where officials discussed the nation’s fiscal performance and strategic priorities.
“As we look ahead to the end fiscal year 2025, our nation’s economy is forecasted to grow by 1.1 percent. This tempered growth reflects the tapering of our post-pandemic recovery and signals a return to pre-COVID levels of economic activity,” said Acting Financial Secretary Pogson. “While the pace may be modest, it marks a stabilising foundation upon which we can build.”
He underscored that the local economy continues to strengthen, supported by sound fiscal management, prudent public investment, and the resilience of key sectors.
“Inflation has declined significantly from a high of 2.7 percent and 3.6 percent in 2022, and 2023, respectively, to a modest 1.0 percent in 2024, and 0.6 percent up to August 2025,” said Mr. Pogson. “The medium-term outlook, spanning 2026, to 2030, is more encouraging. We anticipate average annual growth of approximately 2.5 percent, with GDP projected to reach EC$2.7 billion by the end of the decade. This growth is expected to be broad-based, with expansion across every sector and subsector of our economy.”
While optimistic about the country’s economic path, Mr. Pogson cautioned that external and domestic challenges could affect growth. These include geopolitical tensions in Europe and the Middle East, emerging strains between the United States and Venezuela, a slowdown in global economic activity, potential delays in major local construction projects, and the increasing threat of severe weather events due to climate change.
Despite these risks, the acting financial secretary stressed that sectoral performance will be central to achieving long-term prosperity. The Agriculture and Fishing sectors, though currently representing just 1.2 percent of GDP, are projected to expand at 6.8 percent annually as the nation pursues food security and deeper linkages with the tourism industry.
The Construction sector, which contributes 13.5 percent of GDP, is expected to maintain steady growth of 2.3 percent annually, spurred by both public and private infrastructure developments in housing, education, healthcare, and tourism. Similarly, the Hotels and Restaurants sector, a key driver of foreign exchange, will grow by 2.0 percent per annum, supported by expanded airlift and robust destination marketing.
Mr. Pogson also highlighted that service-related sectors such as Financial Services, Transportation, Real Estate, and Public Administration will continue to underpin economic activity, ensuring that the Federation’s growth remains inclusive and sustainable.
As the Government of Saint Kitts and Nevis prepares to table the 2026 National Budget, these projections reaffirm its commitment to building a resilient, diversified, and forward-looking economy, one that supports the Sustainable Island State Agenda (SISA) and enhances the quality of life for all citizens and residents.
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