Abstract
This 2016 Article IV Consultation highlights that economy of St. Kitts and Nevis continued its strong growth at about 5 percent, recording the strongest growth in the region during 2013-15. Strong growth has been underpinned by construction and tourism sector activity and their favorable spillovers on the rest of the economy, supported by surging inflows from its Citizenship-by-Investment (CBI) program. Large CBI inflows continued in 2015, albeit at a slower pace. The medium-term outlook is positive, but remains dependent on developments in CBI inflows. Growth is expected to moderate to 3.5 percent in 2016 and 3 percent, on average, over the medium term.
Fund Relations
(As of May 31, 2016)
Membership Status: Joined August 15, 1984; Article VIII.
| General Resources Account: | SDR Million | Percent of Quota |
|---|---|---|
| Quota 1/ | 12.50 | 100.00 |
| Fund holdings of currency | 11.52 | 92.15 |
| Reserve position in the Fund | 0.98 | 7.86 |
| General Resources Account: | SDR Million | Percent of Quota |
|---|---|---|
| Quota 1/ | 12.50 | 100.00 |
| Fund holdings of currency | 11.52 | 92.15 |
| Reserve position in the Fund | 0.98 | 7.86 |
| SDR Department: | SDR Million | Percent of Allocation |
|---|---|---|
| Net cumulative allocation | 8.50 | 100.00 |
| Holdings | 4.73 | 55.67 |
| SDR Department: | SDR Million | Percent of Allocation |
|---|---|---|
| Net cumulative allocation | 8.50 | 100.00 |
| Holdings | 4.73 | 55.67 |
Outstanding Purchases and Loans: None
Latest Financial Arrangements:
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| Stand-By | Jul 27, 2011 | Jul 26, 2014 | 52.51 | 47.37 |
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| Stand-By | Jul 27, 2011 | Jul 26, 2014 | 52.51 | 47.37 |
Projected Payments to Fund2/:
(SDR Million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | ||||||
|---|---|---|---|---|---|---|
| 2016 | 2017 | 2018 | 2019 | 2020 | ||
| Principal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Forthcoming | ||||||
|---|---|---|---|---|---|---|
| 2016 | 2017 | 2018 | 2019 | 2020 | ||
| Principal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
Implementation of HIPC Initiative: Not Applicable
Implementation of MDRI Assistance: Not Applicable
Implementation of Post-Catastrophe Debt Relief (PCDR): Not Applicable
Exchange Arrangement
St. Kitts and Nevis is a member of the Eastern Caribbean Central Bank (ECCB), which manages monetary policy and the exchange system for its eight members. The common currency, the Eastern Caribbean dollar, has been pegged to the U.S. dollar at the rate of EC$2.70 per U.S. dollar since July 1976. The de jure regime is a currency board, which in practice the ECCB has operated like a quasi-currency board, maintaining foreign exchange backing of its currency and demand liabilities close to 100 percent. St. Kitts and Nevis accepted the obligations of Article VIII, Sections 2, 3, and 4 in December 1984. The exchange system is free of restrictions on the making of payments and transfers for current international transactions.
Safeguards Assessment
Under the Fund’s safeguards assessment policy, the Eastern Caribbean Central Bank (ECCB) is subject to a full safeguards assessment on a four year cycle. An update assessment was completed in April 2016 and found that the ECCB has maintained generally strong controls over its key operations. External audit and financial reporting practices remain sound. The ECCB financial statements are compliant with International Financial Reporting Standards and are published on a timely basis. The internal audit function needs to be reformed to align it with leading international practices and oversight could be further strengthened by enhancing the financial expertise of the audit committee.
Last Article IV Consultation
The last Article IV staff report (IMF Country Report No. 15/248) was published on September 04, 2015. Board discussion took place on August 31, 2015. Article IV consultations take place on a 12-month cycle.
FSAP Participation, ROSCs, and OFC Assessment
St. Kitts and Nevis participated in the regional ECCU FSAP conducted in September 2004. The Financial System Stability Assessment is available at http://www.imf.org/external/pubs/cat/longres.aspx?sk=17718.
A review of St. Kitts and Nevis AML/CFT Assessment was conducted by a team of assessors representing the Caribbean Financial Action Taskforce (CFATF) in September 2012.
Technical Assistance: (2010-Present)
Since 2010, St. Kitts and Nevis has benefited from technical assistance in the areas of tax policy, tax administration, economic statistics, financial supervision and macroeconomic management, both from IMF headquarters and the Caribbean Regional Technical Assistance Centre (CARTAC).
CARTAC and the IMF’s Statistics Department (STA) advised the National Statistics Office on rebasing the national accounts, rebasing the consumer price index, and developing export-import price indices. CARTAC is also assisting in compiling separate production-based measures of GDP for St. Kitts and Nevis. Further, CARTAC is providing technical assistance to the ECCB and the National Statistics Office to improve the quality of external sector statistics and to introduce the new survey instruments in line with the sixth edition of the Balance of Payments and International Investment Statistics Manual (BPM6).
CARTAC, the IMF’s Monetary and Capital Markets Department (MCM), and the IMF’s Legal Department (LEG) advised the authorities on strengthening financial sector regulation and supervision, including risk-based supervision. With assistance from the Office of the Superintendent of Financial Institutions in Canada (OSFI), CARTAC provided technical assistance to the ECCB on drafting the OECS Insurance Act, and also, in conjunction with LEG, provided technical assistance to the ECCB in finalizing the drafting of the OECS Money Services business Act. CARTAC also assisted in the development of the Single Regulatory Unit and provided training to the Financial Services Regulatory Commission (FSRC) on implementing Risk-Based Supervision, including for nonbank financial institutions in the Federation and the offshore banking sector in Nevis.
CARTAC has delivered significant TA to the Customs and Excise Department (CED) in relation to its reform and modernization program, including Post-Clearance Audit (PCA), Valuation and Risk Management training and developing a Corporate and Strategic Business Plan (2014–17). CARTAC also provided assistance in drafting a new Customs bill and regulations and training for the implementation of the OECS Harmonized System for goods classification.
CARTAC and MCM provided technical assistance on public debt management under the Fund-supported program.
IMF’s Fiscal Affairs Department (FAD) and the World Bank provided assistance on Public Financial Management under the SEMCAR project. A follow-up mission from FAD visited the Federation in February 2016 to review progress with previous FAD recommendations and provide advice on remaining challenges for modernizing tax and customs administration.
IMF’s Fiscal Affairs Department (FAD) is currently providing assistance for the comprehensive review of the tax incentives regime. An FAD scoping mission took place in March 2016 to review the main laws granting tax concessions and identify the next steps for developing an incentive regime that would be appropriate for the circumstances of St. Kitts and Nevis.
CARTAC, FAD and LEG provided assistance to improve cash management and tax administration—including collection enforcement. CARTAC also provided assistance in Property Tax reform to move the property tax base from rental value to market value, and in improving central government fiscal and debt data.
A capacity building exercise was conducted to train new officers in the preparation of fiscal and debt projections.
As part of the Stabilization and Adjustment Technical Assistance Program (SATAP), St. Kitts and Nevis have benefited from capacity building in macroeconomic analysis.
Relations with the World Bank Group
(As of May 2016)
World Bank Group OECS Regional Partnership Strategy: On November 13, 2014, the Board of the Executive Directors of the World Bank Group has endorsed the new OECS Regional Partnership Strategy (RPS) which will cover the period FY15–19. The high-level objective of the new RPS is to contribute to lay the foundations for sustainable inclusive growth, in line with the OECS governments’ priorities. In order to achieve this goal, the program is planned to be organized around three main areas of engagement. Under the first one, the WBG is planning to support “competitiveness”. Growth and job creation in the private sector will be supported both horizontally – by improving the business environment– and vertically – by focusing on specific sectors with a high potential to generate inclusive sustainable growth (particularly tourism, agribusiness and their respective linkages). The second area of engagement is “public sector modernization”, with particular focus on public financial management (PFM) and institutional capacity, including for statistics and public private partnerships (PPPs), to better leverage private investment in infrastructure and service provision. The third area is “resilience”, with the objective to address both social vulnerabilities (in education, health and social protection), and exposure to natural disasters. Constrained by the small size of investments in the OECS, the IFC and MIGA will contribute to the RPS objectives through selective investment support, depending on opportunities. The IFC will focus on crisis response; job creation and inclusive growth; innovation, competitiveness, and integration; and climate change. MIGA faces limited opportunities for engagement because of the small market size of the OECS countries.
The RPS is grounded in a holistic approach to tackling the long-standing issues of low growth and debt sustainability in the Caribbean: the Comprehensive Debt Framework, developed in 2010 by the Bank at the request of the Heads of Government of CARICOM countries. Structured around four pillars, the Comprehensive Debt Framework (CDF) is designed to address the interdependent structural causes of high debt and low growth in small island states by (i) promoting private-sector led growth, (ii) strengthening fiscal management, (iii) building resilience to natural disasters, and (iv) improving debt management. Governments of the OECS recognize the multifaceted nature of the challenges they face and understand that improvements in competitiveness, reduction in sovereign debt levels, fiscal adjustments to ensure macro sustainability, and enhanced sustainability and resilience to shocks are interrelated aspects that are critical to resume and sustain inclusive growth. As a result, they have used the CDF to frame their own reform strategies and activities.
The indicative IBRD lending program for the six OECS countries is expected to be around US$120 million, or up to a maximum of US$20 million for each OECS country for the period of the RPS (FY15–19), subject to country and program performance, IBRD’s lending capacity, and exposure management parameters. In addition to the IBRD envelope, four OECS countries (Dominica, Grenada, St. Lucia, and St. Vincent and the Grenadines) can also count on an IDA national allocation. The IDA17 (FY15–17) allocation for the OECS is equal to SDR61.3 million, an increase of around 22 percent over the IDA16 OECS allocation (SDR50.3 million). With regard to St. Kitts and Nevis, as the country is not eligible to IDA resources (similarly to Antigua and Barbuda), it has available an indicative amount of US$ 20 million IBRD resources for the period covered by the RPS (FY15–19).
A. Projects
St. Kitts and Nevis, because of its income status, is not eligible for IDA resources. Its indicative IBRD allocation for the period covered by the RPS FY15–19 is US$20 million. As of today, there are no active lending operations in St. Kitts and Nevis.
The most recent WBG engagement has been limited to the implementation of a grant which had the objective of enhancing Public Sector Governance and Efficiency. This operation (US$ 415,000) closed in October 2015 and was financed by a grant from the Institutional Development Fund (IDF), a World Bank’s financing tool to enhance the delivery and implementation of programs that will lead ultimately to better development results. The objective of this project was to increase the quality of expenditures and public sector efficiency and promote a fiscally sustainable and more equitable system of pay and employment which generates the right incentives to improve public sector performance in St. Kitts and Nevis. This was done through building capacity at the Ministry of Finance by working with government teams to: (i) implement measures to rapidly increase the efficiency of personnel expenditures; (ii) align human resource needs and staffing in St. Kitts and Nevis public service through the implementation of recommendations of functional reviews; and (iii) introduce pay classification and evaluations.
The government of St. Kitts and Nevis launched its national chapter of the Caribbean Growth Forum (CGF) in February 2013. The CGF is an initiative led by the World Bank, the Inter-American Development Bank, and the Caribbean Development Bank, in collaboration with the United Kingdom Agency for International Development (DFID) and the Canadian Department of Foreign Affairs, to identify policies and initiatives aimed at inducing growth and creating jobs in the Caribbean region through analytical work, knowledge exchange and inclusive dialogue. The CGF can contribute to an enhanced and participatory policy dialogue (involving the private sector, CSOs, and other non-traditional stakeholders, such as youth and Diaspora) on key challenges that affect economic growth, in a situation where fiscal space is limited and the need to promote a more diversified knowledge-based economy is pressing. The CGF national chapters have been launched in 12 Caribbean countries, including all the six OECS countries.
B. Economic and Sector Work
The Bank has completed a series of analytical products relating to public expenditure, fiscal and debt sustainability, growth and competitiveness, the financial sector, public sector management and social protection. The ongoing dissemination of these reports represents a key instrument for policy dialogue with the OECS governments, including St. Kitts and Nevis. The Bank’s program in St. Kitts and Nevis is further supported by a comprehensive series of analytical and advisory activities, including the following: “Towards a New Agenda for Growth” – OECS growth and competitiveness study (2005); An OECS Skills Enhancement Policy Note (2006); a Caribbean Air Transport Report (2006); a regional study on Crime, Violence, and Development: Trends, Costs, and Policy Options in the Caribbean (2007); an OECS Private Sector Financing Study (2008); the OECS Tourism Backward Linkages Study (2008); the report titled “Caribbean – Accelerating Trade Integration: Policy Options for Sustained Growth, Job Creation and Poverty Reduction” (2009); a study on the Nurse Labor & Education Markets in the English-Speaking CARICOM: Issues and Options for Reform (2009); and Caribbean Regional Electricity Supply Options: Toward Greater Security, Renewable and Resilience (2011). A number of recent analytical works have also been disseminated in the context of the Caribbean Growth Forum. A number of knowledge products have also been disseminated more recently, including “Driving tourism in the Eastern Caribbean: The case for a regional Ferry”; “Trade matters: new opportunities for the Caribbean”; “Linking farmers and agro-processors to the tourism industry in the OECS”; and the “OECS Growth report”.
Relations with the Caribbean Development Bank
(As of May 2016)
Over the years, the Caribbean Development Bank (CDB) has supported the economic and social development of St. Kitts and Nevis, by providing financing for priority capital and technical assistance (TA) projects. In addition, CDB has engaged in policy dialogue with the Government of St. Kitts and Nevis. CDB’s involvement with SKN has been concerned with activities such as: the formulation and implementation of macroeconomic, social and sectoral policies; development of infrastructure to facilitate growth and economic diversification; direct and indirect lending to agriculture; and emergency rehabilitation.
In December, 2012, CDB approved a new assistance strategy for St. Kitts and Nevis for the period 2013–16. The strategy focuses on establishing an enabling environment for sustained inclusive growth and poverty reduction and strengthening resilience by securing social stability and improving environmental sustainability. The indicative list of interventions contained in the assistance strategy was expected to result in a lending program of up to US$42.7mn over the strategy period. At the end of 2015, CDB had approved loans totaling US$177.8mn to St. Kitts and Nevis, of which US$2.4mn were undisbursed.
The Nevis Water Supply Enhancement is the only major project currently under implementation. The project aims to assist in improving the water supply network capacity on the island of Nevis. Under the project, approximately 20 kilometers of pipelines, two pumping stations and storage capacity of 1.0 million gallons will be constructed. The project also provides for capacity building and strengthening institutional arrangements for the delivery of water services.
The 2015 reporting period saw continued progress, although completion of the overall project will be delayed. The installation of tanks and pumping stations is 95% completed. However only 57% of the pipe network (parallel funded by NIA) has been completed, due to local capacity issues. This will delay completion of the project by three years. Disbursement totaled $6.2mn, approximately 74% of the loan amount of $8.4mn. Based on the amounts outstanding on existing contracts and projected activities, the project will be completed approximately $1.3mn below budget. The savings will be spent on additional reservoirs and pipe network. In addition, a tariff study is to be carried out.
Three other projects were previously in the pipeline in 2013. (i) The Sixth Student loan was terminated by the borrower, the St. Kitts-Nevis-Anguilla National Bank, and all monies owing to CDB were repaid; (ii) the works funded by the Immediate Response Loan for Tropical Storm Otto were completed under budget and the balance of the loan was cancelled; (iii) the Second Power Project for Nevis which included the installation of a generator of 2.5mw, ancillary switchgear and an operations facility was cancelled.
In 2015 CDB’s Board approved support for Technical and Vocational Education and Training (TVET). A TVET enhancement project was appraised by CDB staff, and approved in December 2015. CDB will lend US$8mn to improve the TVET learning environment, enhance institutional capacity, provide support for TVET Secretariat programming, and develop operational guidelines to support PEP training. Disbursement is expected to start in late 2016.
Major Project under Implementation
(In millions of U.S. Dollars)
Major Project under Implementation
(In millions of U.S. Dollars)
| Project | Approved | Undisbursed |
|---|---|---|
| Nevis Water Supply Enhancement | 8.425 | 2.231 |
Major Project under Implementation
(In millions of U.S. Dollars)
| Project | Approved | Undisbursed |
|---|---|---|
| Nevis Water Supply Enhancement | 8.425 | 2.231 |
Loan Disbursement, Service and Resource Flow
(In millions of U.S. dollars)
Loan Disbursement, Service and Resource Flow
(In millions of U.S. dollars)
| 2011 | 2012 | 2013 | 2014 | 2015 | ||
|---|---|---|---|---|---|---|
| Net Disbursement | −2.31 | −5.48 | 4.34 | −5.25 | −6.28 | |
| Disbursement | 4.37 | 1.28 | 18.98 | 3.31 | 0.75 | |
| Amortization | 6.69 | 6.76 | 14.64 | 8.56 | 7.03 | |
| Interest and Charges | 3.57 | 3.32 | 3.15 | 3.23 | 2.84 | |
| Net resource flow | −5.89 | −8.80 | 1.18 | −8.48 | −9.12 | |
Loan Disbursement, Service and Resource Flow
(In millions of U.S. dollars)
| 2011 | 2012 | 2013 | 2014 | 2015 | ||
|---|---|---|---|---|---|---|
| Net Disbursement | −2.31 | −5.48 | 4.34 | −5.25 | −6.28 | |
| Disbursement | 4.37 | 1.28 | 18.98 | 3.31 | 0.75 | |
| Amortization | 6.69 | 6.76 | 14.64 | 8.56 | 7.03 | |
| Interest and Charges | 3.57 | 3.32 | 3.15 | 3.23 | 2.84 | |
| Net resource flow | −5.89 | −8.80 | 1.18 | −8.48 | −9.12 | |
Statistical Issues
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. | |
| National Accounts: Methodological deficiencies are present in the real sector statistics. GDP figures rely on the production approach, both in constant and current prices. Limited survey data hinder the assessments of value-added for each sector with some sectors suffering from significant weaknesses in estimation methodology. On the expenditure of GDP, which is available only at current prices, the aggregate final private consumption expenditure is derived as a residual. This residual includes households and NPISH final consumption expenditures, and changes in inventories. Weaknesses are observed in the methods to estimate gross capital formation. GDP figures are derived from the production approach in constant and current prices. There are significant delays in completing data collection and processing of the annual NA. Staffing constraints in the compiling agency may compromise the development of new statistics, the quality improvement of the existing ones, and the intended improvements of timeliness. No quarterly GDP is available. Monthly data on tourism is disseminated by the ECCB with a significant lag. | |
| Price Statistics: CPI only covers St. Kitts but not Nevis although the information is available. Monthly CPI data are posted on the ECCB website with a long lag, and a break in the series in November 2010 suggests a methodological problem in the linking process with the previous base. The ECCB disseminate monthly data on tourism also with a long lag, and the estimates on tourism expenditure are based on an old survey of spending by types of tourists and are only updated by changes in CPI. Except for data from the social security board, limited data are available on labor market developments. | |
| Government Finance Statistics: St. Kitts and Nevis has reported to STA quarterly government finance statistics (GFS) up to 2014Q1 and annual GFS up to 2012 on main aggregates and their components for revenue, expense, and financing of the budgetary central government. Extra-budgetary units are included in budgetary central government. Accounts for the public enterprises are only available with a long lag. There are also limited accounts provided on the activities of the Sugar Investment Diversification Foundation, although it is playing an incremental role in fiscal policy. Progress has been made in reducing discrepancies between overall balance and available financing in 2013 but further work is needed to resolve discrepancies in earlier years. Government finance data are recorded by the authorities on a cash basis, and reported to the Fund based on a Chart of Accounts broadly in line with the GFSM 1986 classifications. Efforts to report the government financial balance sheet, particularly the main liabilities (loans and debt securities), will strengthen the fiscal data for surveillance purposes. In implementing the GFSM 2014, the authorities should consider making selective adjustments to the current cash accounting, as relevant, in the following categories: arrears, debt reorganization, transactions in kind, and interest. | |
| Monetary and Financial Statistics: Monthly monetary statistics are compiled and reported to the Fund by the ECCB, based on standardized report forms (SRF) for the central bank (SRF 1SR) and for other depository corporations (SRF 2SR), since July 2006. In April 2007, a data ROSC mission assessed the monetary statistics with reference to the GDDS and the Data Quality Assessment Framework (DQAF, July 2003). It indicated that the institutional coverage of other depository corporations is incomplete, as data for mortgage companies, finance companies, building societies, and credit unions—all of which accept deposits—are excluded. Also, accrued interest is not incorporated in the value of the interest-bearing assets and liabilities, and valuation adjustments are included in other liabilities. In addition, source data for the commercial banks do not provide the disaggregation recommended by the Monetary and Financial Statistics Manual and Compilation Guide. Close coordination between the ECCB and the single regulatory unit (which supervises financial corporations other than those licensed under the Banking Act) is crucial. The ECCB is currently working in implementing a new reporting system for commercial banks that is envisaged to address the recommendations made by the April 2007 data ROSC mission. It is expected that the new reporting system would be implemented in 2016–2017. Financial Soundness Indicators (FSI): The ECCB compiles financial soundness indicators (FSIs) for its member countries, including St. Kitts and Nevis. However, due to confidentiality reason, dissemination of FSIs for the ECCB member countries has so far not been approved. | |
| External sector statistics: Balance of payments data are compiled and disseminated by the ECCB on an annual basis. The ECCB released preliminary summary estimates of 2014 balance of payments and—for the first time—international investment position statistics following the latest international standard methodology (BPM6) for the eight ECCU member economies in January 2016. The ECCB plans to publish comprehensive balance of payments data in October 2016. The estimates benefited from CARTAC technical assistance to develop and administer new surveys, and train data compilers and survey respondents. Given the lack of detail of preliminary 2014 data, more work is needed to review the recent revisions and identify balance of payments components that need further improvement. The quality of major components of the balance of payments needs substantial improvement, including the recording of goods imports, travel credits, investment income, and direct investment transactions. There is also need to compile private sector external debt data; St. Kitts and Nevis does not report external debt data to the Quarterly External Debt Statistics (QEDS) database. Further work have also been identified to (a) improve timeliness of annual data dissemination (the most current data reported to STA pertains to 2013) and (b) review and produce time series that are consistent with BPM6 methodological changes. Actions will have to be undertaken in conjunction with the ECCB, which coordinates the compilation of external sector statistics for all its member economies. Data shortcomings are being addressed by a shift from BPM5 to BPM6, as well as additional TA from STA and CARTAC. | |
| II. Data Standards and Quality | |
| St. Kitts and Nevis has been participating in the General Data Dissemination System (GDDS) since October 2000, and currently participates in its successor initiative, the e-GDDS. The 2007 regional data ROSC provides an assessment on the ECCB’s monetary statistics. No data ROSC is available for other sectors. Monetary Statistics Component of the Regional Data Module Report on Observance of Standards and Codes (ROSC) for the Eastern Caribbean Central Bank (ECCB) was published in 2007. | Data ROSC was published on August 2007. |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. | |
| National Accounts: Methodological deficiencies are present in the real sector statistics. GDP figures rely on the production approach, both in constant and current prices. Limited survey data hinder the assessments of value-added for each sector with some sectors suffering from significant weaknesses in estimation methodology. On the expenditure of GDP, which is available only at current prices, the aggregate final private consumption expenditure is derived as a residual. This residual includes households and NPISH final consumption expenditures, and changes in inventories. Weaknesses are observed in the methods to estimate gross capital formation. GDP figures are derived from the production approach in constant and current prices. There are significant delays in completing data collection and processing of the annual NA. Staffing constraints in the compiling agency may compromise the development of new statistics, the quality improvement of the existing ones, and the intended improvements of timeliness. No quarterly GDP is available. Monthly data on tourism is disseminated by the ECCB with a significant lag. | |
| Price Statistics: CPI only covers St. Kitts but not Nevis although the information is available. Monthly CPI data are posted on the ECCB website with a long lag, and a break in the series in November 2010 suggests a methodological problem in the linking process with the previous base. The ECCB disseminate monthly data on tourism also with a long lag, and the estimates on tourism expenditure are based on an old survey of spending by types of tourists and are only updated by changes in CPI. Except for data from the social security board, limited data are available on labor market developments. | |
| Government Finance Statistics: St. Kitts and Nevis has reported to STA quarterly government finance statistics (GFS) up to 2014Q1 and annual GFS up to 2012 on main aggregates and their components for revenue, expense, and financing of the budgetary central government. Extra-budgetary units are included in budgetary central government. Accounts for the public enterprises are only available with a long lag. There are also limited accounts provided on the activities of the Sugar Investment Diversification Foundation, although it is playing an incremental role in fiscal policy. Progress has been made in reducing discrepancies between overall balance and available financing in 2013 but further work is needed to resolve discrepancies in earlier years. Government finance data are recorded by the authorities on a cash basis, and reported to the Fund based on a Chart of Accounts broadly in line with the GFSM 1986 classifications. Efforts to report the government financial balance sheet, particularly the main liabilities (loans and debt securities), will strengthen the fiscal data for surveillance purposes. In implementing the GFSM 2014, the authorities should consider making selective adjustments to the current cash accounting, as relevant, in the following categories: arrears, debt reorganization, transactions in kind, and interest. | |
| Monetary and Financial Statistics: Monthly monetary statistics are compiled and reported to the Fund by the ECCB, based on standardized report forms (SRF) for the central bank (SRF 1SR) and for other depository corporations (SRF 2SR), since July 2006. In April 2007, a data ROSC mission assessed the monetary statistics with reference to the GDDS and the Data Quality Assessment Framework (DQAF, July 2003). It indicated that the institutional coverage of other depository corporations is incomplete, as data for mortgage companies, finance companies, building societies, and credit unions—all of which accept deposits—are excluded. Also, accrued interest is not incorporated in the value of the interest-bearing assets and liabilities, and valuation adjustments are included in other liabilities. In addition, source data for the commercial banks do not provide the disaggregation recommended by the Monetary and Financial Statistics Manual and Compilation Guide. Close coordination between the ECCB and the single regulatory unit (which supervises financial corporations other than those licensed under the Banking Act) is crucial. The ECCB is currently working in implementing a new reporting system for commercial banks that is envisaged to address the recommendations made by the April 2007 data ROSC mission. It is expected that the new reporting system would be implemented in 2016–2017. Financial Soundness Indicators (FSI): The ECCB compiles financial soundness indicators (FSIs) for its member countries, including St. Kitts and Nevis. However, due to confidentiality reason, dissemination of FSIs for the ECCB member countries has so far not been approved. | |
| External sector statistics: Balance of payments data are compiled and disseminated by the ECCB on an annual basis. The ECCB released preliminary summary estimates of 2014 balance of payments and—for the first time—international investment position statistics following the latest international standard methodology (BPM6) for the eight ECCU member economies in January 2016. The ECCB plans to publish comprehensive balance of payments data in October 2016. The estimates benefited from CARTAC technical assistance to develop and administer new surveys, and train data compilers and survey respondents. Given the lack of detail of preliminary 2014 data, more work is needed to review the recent revisions and identify balance of payments components that need further improvement. The quality of major components of the balance of payments needs substantial improvement, including the recording of goods imports, travel credits, investment income, and direct investment transactions. There is also need to compile private sector external debt data; St. Kitts and Nevis does not report external debt data to the Quarterly External Debt Statistics (QEDS) database. Further work have also been identified to (a) improve timeliness of annual data dissemination (the most current data reported to STA pertains to 2013) and (b) review and produce time series that are consistent with BPM6 methodological changes. Actions will have to be undertaken in conjunction with the ECCB, which coordinates the compilation of external sector statistics for all its member economies. Data shortcomings are being addressed by a shift from BPM5 to BPM6, as well as additional TA from STA and CARTAC. | |
| II. Data Standards and Quality | |
| St. Kitts and Nevis has been participating in the General Data Dissemination System (GDDS) since October 2000, and currently participates in its successor initiative, the e-GDDS. The 2007 regional data ROSC provides an assessment on the ECCB’s monetary statistics. No data ROSC is available for other sectors. Monetary Statistics Component of the Regional Data Module Report on Observance of Standards and Codes (ROSC) for the Eastern Caribbean Central Bank (ECCB) was published in 2007. | Data ROSC was published on August 2007. |
Table of Common Indicators Required for Surveillance
(As of May 2016)
includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
Central government only.
Including currency and maturity composition.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).
Table of Common Indicators Required for Surveillance
(As of May 2016)
| Date of latest observation | Date received | Frequency of data6 | Frequency of reporting6 | Frequency of publication6 | |
|---|---|---|---|---|---|
| Exchange Rates | Fixed Rate | NA | NA | NA | NA. |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 2/16 | 04/14/16 | M | M | M |
| Reserve/Base Money | 2/16 | 04/14/16 | M | M | M |
| Broad Money | 2/16 | 04/14/16 | M | M | M |
| Central Bank Balance Sheet | 2/16 | 04/14/16 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 2/16 | 04/14/16 | M | M | M |
| Interest Rates2 | 2/16 | 04/14/16 | M | M | M |
| Consumer Price Index | 4/15 | 07/15/15 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3—General Government4 | 3/15 | 07/01/15 | Q | Q | A |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 3/15 | 07/01/15 | Q | Q | A |
| External Current Account Balance | 2013 | 02/27/15 | A | A | A |
| Exports and Imports of Goods and Services | 2013 | 02/27/15 | A | A | A |
| GDP/GNP | 2014 | 07/07/15 | A | A | A |
| Gross External Debt | 3/15 | 07/01/15 | Q | Q | A |
includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
Central government only.
Including currency and maturity composition.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).
Table of Common Indicators Required for Surveillance
(As of May 2016)
| Date of latest observation | Date received | Frequency of data6 | Frequency of reporting6 | Frequency of publication6 | |
|---|---|---|---|---|---|
| Exchange Rates | Fixed Rate | NA | NA | NA | NA. |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 2/16 | 04/14/16 | M | M | M |
| Reserve/Base Money | 2/16 | 04/14/16 | M | M | M |
| Broad Money | 2/16 | 04/14/16 | M | M | M |
| Central Bank Balance Sheet | 2/16 | 04/14/16 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 2/16 | 04/14/16 | M | M | M |
| Interest Rates2 | 2/16 | 04/14/16 | M | M | M |
| Consumer Price Index | 4/15 | 07/15/15 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3—General Government4 | 3/15 | 07/01/15 | Q | Q | A |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 3/15 | 07/01/15 | Q | Q | A |
| External Current Account Balance | 2013 | 02/27/15 | A | A | A |
| Exports and Imports of Goods and Services | 2013 | 02/27/15 | A | A | A |
| GDP/GNP | 2014 | 07/07/15 | A | A | A |
| Gross External Debt | 3/15 | 07/01/15 | Q | Q | A |
includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
Central government only.
Including currency and maturity composition.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).
Reflects payment of the quota increase on May 26, 2016, in line with the 14th General Quota Review in 2010. Quota size before the increase was SDR 8.9 million.
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.