Economic and Financial Review - June 2019

June 2019 Economic and Financial Review SAINT LUCIA

negatively impacted the demand for the crop. Consequently, revenue from banana exports fell by 38.5 per cent ($3.2m) when compared with the outturn of the previous year. In the manufacturing sector, output is estimated to have risen marginally as early indicators point to an increase in the production of food, beverages and tobacco over the first six months of 2019 relative to comparable period of 2018. Adding support to this output is an estimated increase in the value of chemicals and printed materials. However, the increase was tempered by estimated contractions in the value of furniture, electrical, plastic and metal products. In addition, commercial bank credit to manufacturing fell by 2.7 per cent, driven largely by decreased lending for the production of alcoholic beverages, furniture and other manufactured products. Construction activity is estimated to have rebounded in the first half of 2019, when compared with the corresponding period of 2018. This assessment is premised primarily on the activities of the public sector, which recorded a 42.1 per cent increase to $111.2m in capital expenditure

compared with a 3.7 per cent rise in the corresponding period of the previous year. By contrast, the Canadian market saw a 3.5 per cent decline in arrivals to 24,965, following a 5.5 per cent decrease one year earlier.

Saint Lucia Visitor Arrivals

Thousands

100.0 150.0 200.0 250.0 300.0 350.0 400.0

0.0 50.0

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Stay-overs Cruise Ship Passengers

Yacht Passengers Excursionists

Output in the agricultural sector is provisionally estimated to have declined in the first half of 2019 compared with that at the end of June last year. This is primarily reflected in banana production which fell by 37.0 per cent to 3,200 tonnes, in contrast to an increase of 64.6 per cent in the corresponding period of 2018. The subdued performance of the banana industry was largely attributable to the devastation caused by Tropical Storm Kirk in September 2018, resulting in an estimated 80.0 per cent damage to the nation’s banana crops. Additionally, more stringent quality standards imposed by UK buyers have

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Eastern Caribbean Central Bank