According to the International Monetary Fund (IMF), GDP growth in St Lucia reached 3 percent in 2017 due to “robust activity in several sectors” and the island’s “short-term outlook is favorable.”
“GDP Growth Reached 3 Percent in 2017”
This was the message from the Executive Board of the IMF released following the Article IV consultation with St Lucia earlier this month.
The Washington D.C.-based international organization commented that: “GDP growth reached 3 percent in 2017, sustained by robust activity in several sectors.”
“Strong Recovery in Tourism”
Much of the growth was attributed to development of and investment in tourism and commercial real estate in St Lucia.
“Favorable external conditions, coupled with hotel expansions and the addition of new flights, generated a strong recovery in tourism, with stay-over arrivals rising by 11 percent, the fastest growth in the Caribbean. Continued strong FDI and public investment supported activity in construction and other sectors.”
“GDP Growth is Expected to Remain Buoyant”
While the IMF believes that some sectors such as agriculture have suffered, public debt remains high and the island faces various risks, “the short-term outlook is favorable.” “GDP growth is expected to remain buoyant in the near term, supported by large infrastructure investment, tourism-related FDI, and continued tourist inflows driven by the global recovery and increased capacity,” the organization added.
“Continued Sustained Growth and Improved Short‑Term Outlook”
Having concluded in a previous report that “growth prospects remain good” for St Lucia’s economy, in this most recent statement the Executive Directors of the IMF welcomed “St Lucia’s continued sustained growth and improved short‑term outlook, supported by strong inflows of tourism and foreign direct investment.”