Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

SAINT LUCIA

decreased by 5.0 per cent, contrary to growth of 4.8 per cent one year ago. The sector’s contribution to GDP fell slightly to 6.0 per cent from 6.3 per cent in 2017. The transport, storage and communications sector posted growth of 2.7 per cent, a deceleration from an increase of 5.9 per cent noted in the previous year. As a percentage of GDP, the sector’s share grew marginally to 19.9 per cent from the previous year’s level of 19.4 per cent. A reading of the consumer price index during 2018 indicated that prices of goods and services in the Saint Lucian economy rose by 1.6 per cent, on an end of period basis. This outturn compares with an increase of 2.0 per cent recorded during 2017. The inflationary pressure was associated in part with increases in four of the major sub- indices. The sub-index for housing, utilities, gas and fuels; the second largest weighted in the basket of goods and services, grew by 9.1 per cent following growth of 8.5 per cent during the previous year. This outturn was largely the result of increases in the price of liquid fuels and electricity. Other upward price movements were recorded in the sub- Prices, Wages and Employment

indices for alcoholic beverages, tobacco and narcotics (5.2 per cent), health (4.0 per cent) and food and non-alcoholic beverages (3.7 per cent). Those increases more than offset declines in the sub-indices for clothing & footwear (9.4 per cent), hotels and restaurants (4.4 per cent), and recreation and culture (3.8 per cent). Official data on wage movements and employment in the private sector were not available. According to the Central Statistics Office, the rate of unemployment was estimated at 16.5 per cent, from 23.2 per cent at the end of 2017. The youth unemployment rate declined to an estimated 36.3 per cent compared with a rate of 38.5 per cent registered at the end of the prior year. The number of public sector employees increased by 1.2 per cent from last year, owing partially to a higher number of police officers recruited.

Fiscal and Debt Developments

The central government’s fiscal operations resulted in an overall deficit of $46.7m (0.9 per cent of GDP), which was lower than the deficit of $56.6m (1.2 per cent of GDP) at the end of 2017.

______________________________________________________________________________ 98 Eastern Caribbean Central Bank