Saint Lucia, as a small developing state, has long been vulnerable to exogenous shocks that have had crippling effects on the economy.

Prime Minister, Hon. Allen Chastanet noted that of late, emerging threats are making survival far more difficult. Pointing to the devastation unleashed on the neighboring island of Dominica by Hurricane Maria in 2017, Prime Minister Chastanet said climate change is a clear and present danger for Saint Lucia.

Interfacing with the business community during the Chamber of Commerce’s Encounter Series, the Prime Minister listed recent actions by the EU and OECD to flag Saint Lucia’s tax regime. Additional economic pressures, he said, are coming to bear from the World Bank and that International Monetary Fund’s instruction to implement fiscal rules. This follows the crisis that has enveloped the Barbados economy. Those rules, the Prime Minister continued, will limit the government. Consequently, private sector involvement in the economy will be even more critical. Against that background, Prime Minister Chastanet emphasized the need for foreign direct investment in the country.

Meantime, Saint Lucia’s economy is showing signs of improvement. The International Monetary Fund, in its published World Economic Outlook in October 2018 projected a 3.4 percent growth in the local economy for 2018. The IMF report also projects a 3.6 percent growth for 2019.