Annual Economic and Financial Review -December 2018

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Eastern Caribbean Central Bank

S A I N T L U C I A

Overview

According to preliminary data, the Saint

Lucian economy experienced a marginal

increase in activity in 2018. Real GDP is

estimated to have expanded by 0.6 per

cen

t 11 ,

following growth of 3.7 per cent one

year ago.

The deceleration in overall

economic activity was largely driven by a

reversal in the construction sector, which

largely offset improved performances in a few

of the other significant economic sectors.

Three of these major contributing sectors,

including hotels and restaurants, recorded

In keeping with international standards, the ECCB updated the terminology used to describe economic activity in the

ECCU. Accordingly, the Bank reports real change in the economy using real Gross Domestic Product (GDP) at market

prices and not Gross Value Added (GVA) at basic prices as used in previous reports of the Annual Economic and

Financial Review (AEFR). However, GVA will remain applicable for output by sector.

increases, while a number of others, including

real estate experienced a fall in activity. On

an end of period basis, the rate of inflation

rose by 1.6 per cent, influenced largely by the

sub-index for housing, utilities, gas and fuels.

The overall deficit from the central

government’s fiscal operations narrowed,

largely due to developments on the capital

account, supported by a smaller current

account surplus. Total disbursed outstanding

public sector debt stock rose during 2018,

reflecting growth in the borrowings of central

government. In the banking system,

developments were marked by growth in