Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

SAINT LUCIA

External Sector Developments

were above that of last year by 3.6 per cent ($7.5m) and 5.6 per cent ($7.4m), respectively. On the domestic side, an increase in banana export to the United Kingdom contributed to growth of 7.7 per cent in revenue from banana exports this year when compared with the outturn of the previous year. Gross travel receipts are estimated to have grown by 12.7 per cent to $2,547.1m, concomitant with growth in the number of stay-over visitors, particularly from the USA and Europe, two of the major source markets. The activities of commercial banks resulted in a net outflow of $326.9m in short-term capital during the year, compared with a net outflow of $58.4m recorded during 2017. In the review period, external loan disbursements to the central government totalled $196.7m, down from $227.2m in the previous year. Principal repayment on debt more than doubled to $248.7m; consequently, the central government was in a net outflow position of $51.9m, in contrast to a net disbursement position of $149.1m at the end of 2017.

A merchandise trade deficit of $1,483.3m (29.3 per cent of GDP) was estimated for 2018, above one of $1,425.6m (29.2 per cent of GDP) recorded for the prior year.

The larger deficit was mainly attributable to growth of 4.1 per cent in the value of imports to $1,841.2m. The increase in import payments was largely influenced by higher outlays ($155.8m) for minerals, fuel, lubricants and related materials. This outturn contrasts a decline of 19.5 per cent recorded at the end of December 2017. Likewise, total exports receipts grew by 4.4 per cent ($15.0m), a deceleration from growth of 6.1 per cent reported for the previous year. The increase in total export receipts reflected developments in both the domestic exports and re-exports sub-categories, where receipts

______________________________________________________________________________ 103 Eastern Caribbean Central Bank