June 2020 Economic and Financial Review

June 2020 Economic and Financial Review SAINT LUCIA

activities and construction and land

more than compensated for a $26.2m

development. Other notable sectors

decrease

in

export

receipts.

receiving credit were wholesale and retail

The main areas of imports reflecting

trade, and public administration and social

declines were food and live animals,

security.

machinery and transport equipment, and

manufactured goods.

Saint Lucia Domestic Credit

Saint Lucia Visible Trade

EC$M

EC$M

EC$M

2500.0

2800.00 2820.00 2840.00 2860.00 2880.00 2900.00 2920.00 2940.00 2960.00 2980.00 3000.00

-500.0 -400.0 -300.0 -200.0 -100.0 0.0 100.0 200.0 300.0 400.0 500.0 600.0

2000.0

1500.0

1000.0

500.0

0.0

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

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

To Households

To Businesses

Total Domestic Credit (DMC)

Total Exports

Total Imports

Trade Balance

The banking system remained liquid at the

In addition, preliminary data show that gross

end of June 2020. During the period under

travel receipts contracted by 58.3 per cent

review, the ratio of net liquid assets to total

($813.9m) in the first half of 2020, directly

non-interbank deposits rose by 5.5

related to the closure of Saint Lucia’s

percentage points to 34.0 per cent,

borders in response to the COVID-19

considerably above the ECCB’s minimum

pandemic. The fall-off in travel receipts

benchmark of 20.0 per cent.

also mirrored the 42.6 per cent decline in

total visitor arrivals over the review period.

External Sector Developments

Developments in the external sector

Outlook

indicate that the merchandise trade deficit

Against the backdrop of the COVID-19

narrowed by 3.3 per cent to $611.7m in

pandemic, the slow return of visitors to

the first six months of 2020 , following a

the island and elevated levels of

22.0 per cent contraction over the

unemployment, the Saint Lucian economy

comparable period in 2019. This

is expected to undergo a deep contraction

development was primarily associated with

in 2020. Downside risks dominate as the

a $47.1m decline in import payments, which

47