Annual Economic and Financial Review -December 2018

S A I N T L U C I A

Overview

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

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 cent 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

11 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.

______________________________________________________________________________ 94 Eastern Caribbean Central Bank