Economic Performance in 2010

According to the St. Lucia 2011 Budget Address, the real GDP of Saint Lucia grew by 4.4 percent in 2010 compared with a contraction of 1.3 percent in 2009. This growth was driven by the construction and tourism sectors supported by the distributive trades and the real estate
sector. Growth was tempered by the effects of Hurricane Tomas in the last quarter of 2010. According to a report by a team from the United Nations Economic Commission for Latin America and the Caribbean (UN-ECLAC), the estimated cost of the losses and damage from Hurricane Tomas amounted to $907.6 million. Infrastructure was the most heavily affected, representing 43 percent of the total impact while the productive and social sectors accounted for 33.8 percent and 23.0 percent respectively.

Tourism
In spite of Hurricane Tomas, the tourism industry recorded strong growth in 2010, with the number of stay over visitors increasing by 9.9 percent to a record 305,937. The improved performance was mainly attributable to increases from the US, Canadian and German markets, reflecting the introduction of new flight arrangements in the last quarter of 2009. The US market in particular performed extremely well, growing by 31 percent, reflecting not only additional flights but also effective marketing initiatives by the Saint Lucia Tourist Board.

Outlook for 2011
Saint Lucia’s economy is projected to grow further in 2011, driven mainly by  tourism and construction. The heightened economic activity in 2011  is expected to positively impact the employment situation in Saint Lucia........

Economic Survey of the Caribbean 2007-2008

According to the survey the economies of the ECCU continued to show positive growth for the sixth consecutive year. In 2007, preliminary data indicated that growth slowed to 5.2% from 6.3% in 2006 as many public and private construction activities geared towards the CWC were completed. In addition there was a significant contraction in the tourism sector, which actually declined by 0.6% in 2007 compared to 6% in 2006. Fuelled by hikes in oil and food prices, especially in the last quarter of 2007, the rate of inflation increased to 6.1% from 1.3% in 2006 and is expected to continue on an upward trend in 2008. Economic growth will continue to slow but remain positive in 2008, projected at 3.8%, mainly influenced by the slowdown in the United States economy and rising international oil, food and other commodity prices.

In 2007 growth was strongest in Anguilla (21%), St Vincent and the Grenadines (6.9%) and Antigua and Barbuda (6.9%) while Hurricane Dean, which struck in August 2007, negatively impacted on the growth rates of Saint Lucia (1.7% compared to 4.9% in 2006) and Dominica (1.8% compared to 3.8% in 2006). Despite the challenge of continuous volcanic activity in Montserrat, the economy grew by 2.8% compared to negative growth of 3.8% in 2006. Intermediate growth of 3% was recorded in both St Kitts and Nevis while growth in Grenada was 4.4%. The main impetus of growth continued to be the construction sector with spill over effects into mining and quarrying, transportation and communication, electricity and water and banks and insurance. Construction activity will remain robust in 2008 driven by the private sector and the Public Sector Investment Programme (PSIP). 

Economic Performance for 2007

St. Lucia: 2008 Article IV Consultation. Source: IMF
St. Lucia’s macroeconomic performance has been mixed in recent years. While real GDP growth averaged about 4 percent during 2003–06, it has slowed to 1¾ percent in 2007, reflecting contraction in hurricane-affected agriculture (mainly banana exports), and slowdowns in construction activity and stayover tourist arrivals. Inflation increased sharply to 6.8 percent at end-December 2007, due to higher imported fuel and food prices and the ongoing depreciation of the U.S. dollar (to which the Eastern Caribbean (EC) dollar is pegged). Unemployment has declined from 22 percent in 2003 to 14 percent in 2007.

 Economic Statistics

St. Lucia: Statistical Appendix. October 6, 2008. Source: IMF