June 2020 Economic and Financial Review

June 2020 Economic and Financial Review SAINT LUCIA

real estate, renting and business activities.

Saint Lucia Consumer Price Index Percentage Change

%

Saint Lucia Visitor Arrivals

Thousands

0.0 2.0 4.0 6.0 8.0

400.0

350.0

300.0

250.0

-6.0 -4.0 -2.0

200.0

150.0

100.0

18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

50.0

All Items Food & Non-Alchoholic Beverages Energy

0.0

Note: Energy includes Housing, Utilities, Gas & Fuels

18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

Stay-overs Cruise Ship Passengers

Yacht Passengers Excursionists

Value added in other important sectors is

Fiscal Developments

also estimated to have fallen, including

The government recorded an overall

construction,

manufacturing

and

deficit of $72.2m in the first half of 2020,

agriculture, all attributable to the depressed

in contrast to a surplus of $55.0m in the

state of the economy, as the COVID-19

comparable period of 2019. This

pandemic resulted in an economic lockdown

development was due mainly to a decline

over the second quarter of 2020.

in current revenue, coupled with an

increase in current expenditure.

The consumer price index fell by 2.1 per

Consistent with these developments, the

cent in the first half of 2020 in contrast to

government’s primary surplus shrank to

a 0.2 per cent increase in the

$9.4m compared with one of $140.1m in

The

corresponding period of 2019.

2019.

deflationary pressures were largely

attributed to a decline in the prices for

The dynamics of rising expenditure and

transport (7.5 per cent), recreation and

falling revenue, precipitated by the global

culture (5.0 per cent), and housing, utilities,

pandemic, led to a current account deficit of

gas and fuels (3.1 per cent). A 6.7 per cent

$64.8m in contrast to a surplus of $109.5m

increase in the cost of clothing and footwear

recorded over the same period in 2019.

mitigated somewhat the overall decline in

Accordingly, current revenue declined by

prices.

21.6 per cent, reflecting contractions in

every major line item, including taxes on

income and profits, domestic goods and

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