Saint Kitts and Nevis is a twin-island federation whose economy is characterised by its dominant tourism, agriculture, and light manufacturing industries. Sugar was the primary export from the 1940s on, but rising production costs, low world market prices, and the government's efforts to reduce dependence on it have led to a growing diversification of the agricultural sector. In 2005, the government decided to close down the state-owned sugar company, which had experienced losses and was a significant contributor to the fiscal deficit.