ECCB Report says St. Lucia has Sound Economic Base

Contact: Roger Joseph

Monday, February 26, 2001 – St. Lucia has a "stable and sound economic base". That is the conclusion drawn by the Eastern Caribbean Central Bank (ECCB) in its latest report on the performance of the St. Lucian economy.

Praising the government for exercising "strong and prudent fiscal discipline in its management of the economy", the report notes that with continued prudent macro-economic management, St. Lucia is well placed for "a self-propelled private sector led growth".

The report says that although economic growth slowed in the year 2000 as a result of the completion of a number of major capital projects, there was expansion in the agricultural and tourism sectors. The expansion in the agricultural sector was due to a rebound in banana production and export revenue, as well as increases in fish landings and exports of non-traditional crops. The increased activity in tourism was the result of higher tourist arrivals.

According to the report, the economic prospects for 2001 appear to be favourable. "There is a high level of business confidence in the tourism industry as evidenced by the number of planned extensions and renovations to hotels," the report adds. It also points to the success of the St. Lucia Rural Enterprise Project (SLREP) and the Rural Economic Diversification Project (REDIP) as key initiatives in an anticipated continued increase in non-traditional agricultural production.

The construction sector will also contribute to the projected favourable performance of the economy, the report suggests, with ongoing work on the Bordelais Correctional Facility in Dennery and the commencement of rehabilitation work on the Soufriere – Vieux Fort highway.

In focusing on development issues facing the country, the ECCB report is of the view that St. Lucia’s long-term growth prospects are dependent on how well the country manages the ongoing transition from a predominantly agricultural based economy to a more diversified economy with emphasis on the services sector.

Commenting on the report, Prime Minister Honourable Dr. Kenny D. Anthony says, it essentially mirrors previous comments he has made on the St. Lucian economy. He anticipates that some of the measures he expects to introduce when he presents the national budget in a few weeks will consolidate the transition of the economy and build on the foundation that has been laid, to achieve even better results in 2001.

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