Basseterre, Saint Kitts, December 17, 2025 (SKNIS) – Prime Minister and Minister of Finance, the Honourable Dr. Terrance Drew, has highlighted the effectiveness of the government’s targeted economic interventions in shielding the people of Saint Kitts and Nevis from the adverse impacts of global inflation, during his 2026 Budget Address delivered on Tuesday, December 16.
Referencing the International Monetary Fund’s World Economic Outlook (October 2025), Prime Minister Drew noted that while global inflation is projected to continue declining, the pace and intensity vary across countries. Inflation in the United States, for example, is expected to remain above target with upside risks, while many other economies are projected to experience more subdued inflationary conditions. Against this challenging global backdrop, Saint Kitts and Nevis has recorded notable success in stabilising domestic prices.
The prime minister reported that inflationary pressures eased significantly in 2024, with inflation falling from 3.6 percent in 2023 to 1.1 percent in 2024. This downward trend continued into 2025, with data as of August, indicating a further decline of 0.5 percentage points to 0.6 percent, underscoring the resilience of the Federation’s economy.
Dr. Drew emphasised that this achievement was not coincidental, but the direct result of deliberate and strategic economic stabilisation measures implemented by the government in the first half of 2025.
“After analysing global price trends, we recognised the need to act and provide the financial relief our citizens required to mitigate rising prices,” Prime Minister Drew said. “This is the reason why our government implemented both the VAT Relief Holiday and the Budget Boost Wallet initiatives over the first six months of this year.”
“These measures helped our citizens improve their purchasing power and ensured that businesses remained economically viable,” the prime minister stated. He further noted that these initiatives, combined with the increase in the Minimum Wage to $500.00 per week, played a critical role in curbing inflation and safeguarding the standard of living of citizens throughout the year.
While acknowledging that the Federation has successfully weathered the most severe inflationary pressures, Prime Minister Drew cautioned that continued vigilance and policy action remain necessary. The government, he affirmed, remains committed to implementing people-centred economic policies aimed at ensuring that all citizens can enjoy a decent and sustainable standard of living, even amid ongoing global economic volatility.
The 2026 Budget reflects this continued commitment, prioritising economic resilience, social protection, and strategic interventions to protect the people of Saint Kitts and Nevis from external economic shocks.
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