National Productivity Council Launched to Drive Sustainable Economic Growth

The government of Saint Kitts and Nevis has established the National Productivity Council, marking a significant step towards enhancing national productivity and supporting the country’s economic development goals, particularly its Sustainable Island State Agenda. This initiative, stemming from a recommendation by the National Minimum Wage Advisory Committee in their December 2024 report, aims to address productivity as a key factor in achieving sustainable economic growth and improving the living standards of the lowest-paid workers. The Council’s formation underscores the government’s recognition of the interconnectedness between productivity, economic growth, and social well-being.

The establishment of the National Productivity Council is directly linked to the government’s vision of creating a sustainable island state. This vision encompasses addressing income inequality, implementing anti-poverty measures, and ensuring that all workers earn a livable wage that allows them to fully participate in a harmonious and socially responsible society. By focusing on productivity improvements, the government aims to create a more equitable and prosperous society where all citizens can benefit from economic growth. This approach aligns with the broader goal of building a resilient and sustainable economy capable of weathering external shocks and providing long-term prosperity for the nation.

The Council’s mandate, as outlined in the National Productivity Act No. 3 of 2024, is comprehensive. It includes promoting a culture of productivity, efficiency, and innovation across both the public and private sectors. This will involve fostering collaboration and the exchange of best practices, as well as working to enhance productivity within the civil service and the broader workforce. By encouraging innovation and efficiency, the Council aims to drive economic growth and improve the overall competitiveness of the nation. This multifaceted approach will require collaboration between various stakeholders, including government agencies, private businesses, and labor organizations.

The formation of the National Productivity Council comes in the wake of a recent phased increase in the minimum wage from $10.75 to $12.50 per hour, a recommendation also put forth by the National Minimum Wage Advisory Committee. To monitor the impact of this wage increase and inform future adjustments, a separate monitoring committee, chaired by Patricia Welch of the Eastern Caribbean Central Bank (ECCB), has been established. This demonstrates the government’s commitment to evidence-based policymaking and its dedication to ensuring that wage increases are sustainable and contribute to overall economic stability. The monitoring committee will play a crucial role in assessing the effects of the minimum wage increase on businesses, employment levels, and the overall economy.

The Governor of the ECCB, Timothy Antoine, highlighted the importance of productivity during the 2025 National Budget Consultation, emphasizing its crucial role in achieving a 7% annual growth rate and doubling the national GDP from $2.3 billion to $4.6 billion. This underscores the regional recognition of productivity as a key driver of economic development. The Council’s work will be instrumental in realizing these ambitious economic goals and ensuring that Saint Kitts and Nevis remains on a path of sustainable growth. By focusing on productivity enhancements, the nation can improve its competitiveness, attract investment, and create more high-paying jobs.

The National Productivity Council, officially inaugurated with the swearing-in of its eight members by Her Excellency the Governor-General, Dame Marcella Liburd, is chaired by Sam Condor and comprises a diverse group of experts from various sectors. This diverse representation ensures a broad range of perspectives and expertise are brought to bear on the Council’s work. The Council’s composition reflects the government’s commitment to inclusivity and collaboration in its pursuit of enhanced national productivity. The members’ combined experience and knowledge will be invaluable in developing and implementing effective strategies to improve productivity across all sectors of the economy. The National Minimum Wage Advisory Committee, whose recommendation led to the Council’s formation, is composed of representatives from key stakeholders, including the ECCB, the St. Kitts-Nevis Trades and Labour Union, the Chamber of Industry and Commerce, the Ministry of Labour and Employment, and nominees from the offices of the Prime Minister, Deputy Governor of Nevis, and the Premier of Nevis. This broad representation ensures that all relevant perspectives are considered in the development of wage policies. The Committee’s work is essential for ensuring that wage policies are fair, sustainable, and contribute to the overall economic well-being of the nation.