2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

SAINT LUCIA

However, the asset quality of commercial banks deteriorated, with the ratio of non- performing loans to gross loans increasing by 3.1 percentage points to 11.3 per cent, moving further away from the ECCB’s 5.0 per cent tolerable limit. Saint Lucia ended 2020 in a net borrowing position with the rest of the world of $562.1m (12.9 per cent of GDP) in contrast to its net lending position of $387.3m (6.8 per cent of GDP) in 2019. This development was primarily influenced by flows on the current account, with services income declining to $513.9m from $1,896.7m one year earlier. Specifically, travel receipts fell to $867.0m from $2,707.0m. External Sector Developments

$146.1m and a net drawdown of assets by financial institutions of $143.8m. Saint Lucia’s imputed reserves also fell by $80.6m.

Outlook

The Saint Lucian economy is projected to return to growth in 2021, although there is some uncertainty regarding the pace of the recovery. Accordingly, the rate of vaccinations, both globally and domestically, would be a key indicator of the time to recovery.  High levels of unemployment are likely to persist over the medium term as the economy recovers from the ravages of the COVID-19 pandemic, further hampering the pace of recovery. is projected to receive support from both public and private sector construction activity. Key public sector investments include  The domestic economy

Saint Lucia Balance of Payments (EC$M)

2,000.0

1,500.0

1,000.0

500.0

0.0

ongoing work on the renovation and expansion of the Hewanorra International Airport, the reconstruction of St Jude Hospital, upgrading of the Millennium Highway and the

(500.0)

(1,000.0)

2016

2017

2018

2019

2020

Exports of Goods

Imports of Goods

Current Balance

Net Lending/Net Borrowing

The net borrowing position was financed primarily by direct investments of

44