St. Lucia Monitoring US Economic Slowdown

Contact: Rose Marie Harris

Thursday, August 2, 2001 - Prime Minister and Minister of Finance, Hon. Dr. Kenny D. Anthony, is planning to make a statement, possibly at the next sitting of the House of Assembly, on the challenges facing St Lucia as a result of the present slowdown in the United States economy.

Speaking in the House of Assembly on Tuesday, Dr. Anthony noted that the US economic slowdown, which is showing signs of accelerating, was already having an impact on St. Lucia’s exports. Other Eastern Caribbean countries were feeling the same pressures, he noted.

“Once that economy contracts and the contraction continues to be deep, then it means that there will be a slowdown and clearly companies that export to the US will have to take measures to insulate themselves,” the Prime Minister said.

Pointing to St. Lucia’s vulnerability to external shocks because of the openness of its economy, Dr. Anthony observed that the downturn in the US economy had come on the heels of a sharp rise in international oil prices.

To cushion consumers from the full impact of the oil price hike and also to ward off inflationary pressures, Government took a policy decision to absorb some of the price increase instead of passing it on fully to consumers.

Assuring the House that government was closely monitoring what was taking place in the US, Dr. Anthony said: “At the appropriate time, I will address honourable members on the present situation as it is affecting Saint Lucia and I hope to present a statement to Parliament at its next sitting on this issue.”

Minister of Commerce, International Financial Services and Consumer Affairs, Hon. Philip. J. Pierre, also spoke on the challenges facing St Lucia as a result of a slowing US economy which is regarded by the international community as the dynamo of the world economy.

“St Lucia needs to improve productivity at all levels and strive to enhance its international competitiveness, he said.

“It is not as simple and easy without looking at factors outside,” he said. “We have to be smart if we are to survive because the factors out there do not seem to be improving and we have to battle in these waters.”

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