St. Kitts and Nevis Prime Minister and Minister of Finance (back) chairs a meeting with the International Monetary Fund (IMF) staff mission to St. Kitts and Nevisn and other Eastern Caribbean Currency Union (ECCU) countries. (Photo by Erasmus Williams)

The Washington, D.C.-based International Monetary Fund (IMF) is reporting that St. Kitts and Nevis and four other Eastern Caribbean countries should see economic growth this year following robust performances in 2004.

The IMF in an assessment submitted to the St. Kitts-based Eastern Caribbean Central Bank (ECCB) said Thursday the economies of St. Kitts and Nevis, Antigua and Barbuda, Dominica, St. Lucia and St. Vincent and the Grenadines grew by an average of 4 percent in 2004 and can expect similar performances in 2005.

The IMF said growth will be driven by a sharp revival of tourism and a jump in construction activity.

An exception was Grenada where Hurricane Ivan reversed expectations for economic growth last year. Ivan hit Grenada in September, killing 39 people, wrecking most buildings and causing an estimated US$900 million in damages.

The IMF said the other islands were not badly affected by one of the Caribbean's worst hurricane seasons in history.

Dominica's economy grew last year for the first time in three years, registering a 3.49 percent expansion. The recovery followed the implementation of US$11.7 million, three-year loan agreement with the IMF that has included wage cuts, tax increase and an elimination of deficit spending.

The IMF praised Eastern Caribbean countries for taking bold steps to rein in spending and reduce debt. It applauded Antigua and Barbuda for introducing personal income taxes and St. Kitts and Nevis for deciding to close its debt-ridding sugar industry this year.