Budget Forum: Prime Minister Emphasizes Economic Diversification and Resilience

Prime Minister the Hon. Dr. Terrance Drew (right) shares a thought with Governor Antoine

Economic Diversification and Resilience Key to Securing a Sustainable Future

At the Budget 2025 National Forum held on October 30, Prime Minister, the Honourable Dr. Terrance Drew, highlighted the need for economic diversification and resilience as key to securing a sustainable future for St. Kitts and Nevis.

Speaking to attendees from the public and private sectors, civil society, and students from C. F. Bryant College, Dr. Drew outlined the government’s commitment to building an economy that balances traditional sectors with emerging industries. This, he noted, would help ensure long-term stability and support the achievement of the Sustainable Development Goals (SDGs) by 2030.

"To reduce vulnerability to global shocks, economic diversification is indeed a cornerstone of the government’s strategy," said Dr. Drew. "Our aim is to transform the economy into a multisectoral, broad-based system that is not dependent on any single sector."

Sustainable Economic Expansion and Diversification (SEED) Initiative

The Prime Minister introduced the government’s Sustainable Economic Expansion and Diversification (SEED) initiative, part of the broader Sustainable Island State Agenda. SEED aims to promote productivity and shift the economy towards services that will improve the country’s macroeconomic performance and raise living standards.

"The SEED pillars promote a transition that will foster economic growth and ensure that key indicators of the Sustainable Development Goals are met. This requires permanent commitment and action-oriented policies to secure our nation’s future," he said.

Acknowledging the Importance of the Citizenship by Investment (CBI) Programme

Dr. Drew also addressed the country’s historical reliance on the Citizenship by Investment (CBI) Programme, which at one point accounted for up to 70% of revenue under the previous administration. He acknowledged the importance of the programme, but stressed that it should not remain the country’s primary economic driver.

"While the CBI Programme is important, it cannot be the sole foundation of our growth," he emphasized.

ECCB Governor Commends Inclusive Approach

Eastern Caribbean Central Bank (ECCB) Governor Timothy Antoine’s Presentation

Eastern Caribbean Central Bank (ECCB) Governor Timothy Antoine commended the St. Kitts and Nevis Government for its inclusive approach to crafting the 2025 budget. During his presentation at the forum, titled "Innovation, Inclusivity, and Sustainability: Our Path Forward," he praised the government’s focus on public engagement in the decision-making process.

Governor Antoine laid out three key elements for the successful transition to a sustainable island state: fostering critical thinking and education, establishing a flexible policy framework, and securing investments for priority projects. He emphasized the importance of key areas like digital transformation, energy security, food and nutrition, and wealth creation as drivers of future growth.

ASPIRE Initiative

He also praised the government’s ASPIRE (Achieving Success through Personal Investment, Resources, and Education) initiative, a financial education programme designed to encourage young people to invest and build wealth. "It aligns with what we [the ECCB] are working towards—training our youth in the culture of investing," he said, pointing out that only 4% of the population currently invests in regional and international markets. ASPIRE aims to address this gap and foster a culture of investment among the youth in St. Kitts and Nevis.

Calls to Action

Both Dr. Drew and Governor Antoine stressed the importance of national participation in the Sustainable Island State Agenda to ensure that the country moves toward a resilient, diversified economy.

Conclusion

The Budget 2025 National Forum marked an important milestone in the government’s efforts to promote economic diversification and resilience in St. Kitts and Nevis. The Prime Minister and ECCB Governor emphasized the need for a multisectoral, broad-based economy that is not dependent on any single sector, and highlighted the importance of public engagement in the decision-making process.

Frequently Asked Questions

What is the Sustainable Economic Expansion and Diversification (SEED) initiative?
The SEED initiative is a government programme aimed at promoting productivity and shifting the economy towards services that will improve the country’s macroeconomic performance and raise living standards.
What is the Citizenship by Investment (CBI) Programme?
The CBI Programme is a government initiative that allows foreign investors to obtain citizenship in exchange for a significant investment in the country. At one point, it accounted for up to 70% of revenue under the previous administration.
What is the ASPIRE initiative?
The ASPIRE initiative is a financial education programme designed to encourage young people to invest and build wealth. It aims to foster a culture of investment among the youth in St. Kitts and Nevis.