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The International Monetary Fund has predicted slow growth for St. Lucia in 2017 as reductions in various revenue generation means take hold.
The IMF expects the country to grow at a rate of 0.5% this year, 0.3 percentile points below last year’s recorded figure and more than 1.3 percentile points less than in 2015.
The IMF release came after a January 16-27 visit to St. Lucia for the annual Article IV consultation discussions on economic developments and macroeconomic policies.
“Despite weak tourism activity, unemployment continued to fall in 2016 and the economy is expected to experience positive albeit moderate growth in 2017. The authorities are designing a bold program of economic reforms which they intend to outline in the forthcoming budget . A credible medium-term fiscal consolidation plan and a rapid implementation of the reform agenda are needed to reduce policy uncertainty and ensure the success of the authorities’ economic program,” the IMF quoted on their website in their assessment of the country’s finances.
The IMF blamed the weak performance of the tourism sector for the growth issue being experienced and stated that the fall in unemployment in 2016 alone could not solely improve the economic position of St. Lucia.
The IMF however expects that strong performance in construction and agriculture will help the country to experience mildly positive results in 2017.
These two sectors were the primary reason for the fall in unemployment in 2016.
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