In 2022, Saint Kitts and Nevis (SKN) began its recovery from the impacts of COVID-19 pandemic. The recovery was supported by a resurgence in international travel demand amid a waning pandemic that allowed the Government to remove all entry restrictions in August 2022. Large receipts from the Citizenship-by-Investment (CBI) programme helped to stem deterioration in the fiscal accounts and limit public borrowing. CBI inflows also aided in augmenting the external position, mitigating some of the impact of higher import prices. The financial system remained stable, despite some weakening in financial soundness indicators.

Macroeconomic conditions are likely to strengthen in 2023, albeit within a challenging external environment. The economy is projected to grow by 4.8%, returning close to pre-pandemic output levels. Growth forecasts could be tempered by tighter global financial conditions and resulting slowdown in advanced economies, particularly the United States of America – SKN’s main tourism source market.