Economic and Financial Review June 2021 SAINT LUCIA

Figure 2 - Saint Lucia Unemployment Rate (%)

Consumer Prices

Consumers in Saint Lucia faced higher prices in the first half of the year as the consumer price index rose by 1.0 per cent, on a period average basis, in contrast to a 2.4 per cent decline one year earlier.

Figure 3 - Saint Lucia Consumer Price Index Percentage Change (period average)

The pick-up in prices was largely influenced by the increased cost for housing, utilities, gas and fuels (3.6 per cent), communication (2.2 per cent), and transport (1.5 per cent). These three sub-indices accounted for approximately 44.2 per cent of the average consumer basket. Higher prices were also recorded for clothing and footwear (4.1 per cent) and health (3.5 per cent). A 1.0 per cent decrease in the food and non-alcoholic sub-index, which accounts for 27.4 per cent of the consumer basket, partially mitigated the overall increase in prices (see figure 3).

Government Operations (Fiscal and Debt)

The government recorded an overall deficit of $250.6m in the first half of 2021, compared with one of $117.0m in the comparable period of 2020 (see figure 4) and an average half-yearly deficit of $7.2m over the previous 5 years. This development was due mainly to a decline in current revenue, coupled with increases in both current and capital expenditure.

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