St. Lucia Budget Address. 2005-2006: Consolidating Gains, Developing a World Class Destination and Enhancing Human Resource Capacity.

The main impetus for GDP growth in 2004 emanated largely from the expansion in hotels and restaurants (5.9 per cent), government services (4 per cent), wholesale and retail trade (7.8 per cent), communication (4.6 per cent), banking and insurance (4.7 per cent) and agriculture (2.1 per cent). These indicators together accounted for 95.5 per cent of total value added. Reductions in value added were recorded in manufacturing (2.5 per cent), electricity and water (3.9 per cent), while construction activity remained high but increased only marginally by 0.4 per cent. Saint Lucia’s economic recovery is well-entrenched, and barring any major adverse shocks, a strong platform has been laid for sustained growth. All of the macroeconomic indicators are favourable. Inflation is low, exports are rising, investment is expanding, more jobs are being created and yes, Mr. Speaker, unemployment is beginning to fall. These positive indicators have been complemented by a major turnaround in our fiscal performance, which has been characterised by improved growth in tax revenues and moderate growth in expenditure. There is no doubt that our economic performance is robust and it is clear that our economic policies are working well.