Economic Indicators Reveal Mixed Performance for St. Lucia's Economy
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Contact: Chris Satney
Monday, January 21, 2008 – Preliminary indicators for the first half of 2007 revealed a mixed performance in the various economic sectors on the island. This analysis was given by Prime Minister Stephenson King when he presented his New Year's Address to the nation in early January.
Tourism, the Prime Minister noted, maintained its position as the lead sector, fuelled in large part by robust growth in cruise ship arrivals.
“Total Tourist arrivals in the first half of 2007 increased by 26.4% to 506, 381. However; stay-over arrivals declined by 7.9%, owing principally to notable contractions in the United States and Caribbean markets. 2007 was a year of assessment and analysis, of adjustment and re-direction, as we sought to lay the foundation for the development programme that has been defined,” Prime Minister King said.
A recovery in the agriculture sector and a small but significant increase in the manufacturing sector, the prime Minister said, also contributed to the increase in economic activity.
Central government's fiscal operations improved during the first six months of 2007, reflecting stronger revenue performances and a reduction in total expenditure.
However, inflation increased by 0.9% as a result of increases in the cost of food, electricity and medical care.
“In light of the challenges we face, some of the decisions we take will not be popular in the short term, but are the right ones, because in the long term Saint Lucia will be placed on a path to economic and social security and prosperity. Consequently, we have moved ahead with preparatory activities required for the introduction of a Value Added Tax (VAT) that will ensure that we have a stable base of government revenue over the long term,” said the Prime Minister.
The Prime Minister noted that his administration will not shy away from its responsibilities in providing leadership for the country and will do what, he said, was right, even if it meant the country had to make sacrifices, endure some pain and swallow some bitter medicine. |
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