Economic and Financial Review - June 2019

S A I N T L U C I A

Overview

Preliminary data indicate that economic activity in Saint Lucia expanded in the first half of 2019, compared with the performance in the corresponding period of 2018. The expansion in activity was largely driven by increased value added in the hotels and restaurants, construction and manufacturing sectors. Consumer prices grew by 0.2 per cent, on an end of period basis, primarily influenced by the sub-index for food and non-alcoholic beverages as well as that for alcoholic beverages, tobacco and narcotics. The merchandise trade deficit declined as reductions were observed for both import and export payments. The central government’s fiscal operations shifted to an overall deficit, primarily associated with developments on the capital

account. The total public sector debt declined, driven largely by a reduction of the central government’s domestic indebtedness. In the banking sector, monetary liabilities (M2) and net foreign assets grew, while domestic credit fell. The commercial banking system remained relatively liquid, capital adequacy improved and the spread between the weighted average interest rates on loans and deposits narrowed during the period under review. risks, developments for the first half of the year suggest that the prospects for Saint Lucia’s economy are largely positive, supported by developments in both the public and private sectors. Planned capital spending on the Notwithstanding downside

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Eastern Caribbean Central Bank