Economic Growth in St. Lucia: A New Era of Prosperity
Strong Leadership and Economic Policies Drive Growth
St. Lucia’s economy is expected to grow by 4.3% in financial year 2024/25, marking a fourth consecutive year of GDP growth above 3% since Prime Minister Hon. Philip J. Pierre took office in July 2021.
Reversing the Economic Decline
Following consecutive years of economic declines, from 3.4% in 2017 to 2.9% in 2018 and 0.7% in 2019, St. Lucia suffered its steepest GDP drop during the COVID-19 pandemic in 2020 at -24.4%. The country needed strong leadership and effective economic policies to reverse the decline and put the economy back on track.
Prime Minister Pierre’s Initiatives
Prime Minister Pierre and his Cabinet of Ministers, supported by a broad team of public servants, introduced fiscal policies that improved revenue collection paired with economic policies that unleashed a historic post-COVID rebound. As a result, St. Lucia’s GDP leapt from a record-low of -24.4% in 2020, accelerating to 11.6% in 2021 and 20.4% in 2022. This strong economic rebound initiated our transition from economic recovery to expansion and continued GDP growth of 3.3% in 2023.
Driving Growth
Construction and tourism continue to drive GDP growth. Stay over arrivals for the period January to October 2024 confirm St. Lucia has surpassed 2019 levels. Furthermore, several major private sector construction projects are underway, accounting for over $3 billion in confirmed foreign direct investment secured by the Pierre Administration since July 2021. Multiple public sector projects backed by the government will inject over $600 million into the economy through 2026.
Supporting Local Businesses
The MSME Loan-Grant Facility, Youth Economy Agency, and Community Tourism Agency, established under the Pierre Administration, have collectively unlocked millions in soft loans and grants to support local businesses and build on the economic gains from the last three years.
Conclusion
St. Lucia’s economy is on a positive trajectory, driven by strong leadership and effective economic policies. The country’s GDP growth is expected to continue, with construction and tourism playing a significant role. The government’s initiatives to support local businesses and stimulate economic growth will help ensure a brighter future for the people of St. Lucia.
Frequently Asked Questions
- What is the expected GDP growth rate for St. Lucia in 2024/25?
The expected GDP growth rate for St. Lucia in 2024/25 is 4.3%. - What were the economic declines experienced by St. Lucia prior to 2020?
St. Lucia experienced economic declines of 3.4% in 2017, 2.9% in 2018, and 0.7% in 2019. - What were the key initiatives introduced by Prime Minister Pierre to reverse the economic decline?
Prime Minister Pierre introduced fiscal policies that improved revenue collection paired with economic policies that unleashed a historic post-COVID rebound. - What are the key sectors driving GDP growth in St. Lucia?
Construction and tourism are the key sectors driving GDP growth in St. Lucia. - What is the total foreign direct investment secured by the Pierre Administration since July 2021?
The Pierre Administration has secured over $3 billion in confirmed foreign direct investment since July 2021. - What is the total amount of public sector projects backed by the government to inject into the economy through 2026?
The government will inject over $600 million into the economy through 2026 through multiple public sector projects.
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