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IMF Notes Severe Impact Of Ukraine War, COVID-19 On Saint Lucia

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The International Monetary Fund (IMF) noted on Friday that the COVID-19 pandemic and import price increases due to the war in Ukraine had severely affected Saint Lucia.

According to an IMF release, after a collapse in 2020, tourist arrivals have rebounded significantly in 2021–22.

But the release, after the IMF Executive Board concluded Article IV consultation with Saint Lucia, observed that recovery remains incomplete.

“The public balance sheet remains under considerable strain, with a sizeable fiscal deficit and a significant increase in public debt since 2019,” it noted.

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According to the IMF, inflation has picked up with the surge in commodity prices—somewhat mitigated by price controls and energy subsidies.

The IMF also disclosed that the financial sector has remained stable, but nonperforming loans have risen during the pandemic.

It said output is projected to gradually recover to the pre-pandemic level by 2024, slowed by the impacts of the war in Ukraine and the tightening of global financial conditions.

In addition, the international financing institution explained that weak balance sheets and higher input costs and supply constrain public and private investments.

It said inflation is projected to rise to 6.4 percent in 2022.

“The fiscal outlook is challenging due to high public debt and large refinancing needs which lead to financing constraints. Without additional policy measures, public debt is projected to stabilize around 90 percent of GDP in the medium term, limiting the space for public infrastructure and social investments,” the world body stated.

Nevertheless, it said the current account deficit is projected to narrow gradually with tourism recovery.

The IMF Directors concurred that, in the near-term, fiscal policy should focus on protecting the most vulnerable from food and fuel price increases.

Given financing constraints, they encouraged the authorities to prioritize spending and increase global energy prices’ pass-through while supporting vulnerable households with targeted transfers, the IMF release stated.

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Editorial Staff
Editorial Staff
Our Editorial Staff at St. Lucia Times is a team publishing news and other articles to over 200,000 regular monthly readers in Saint Lucia and in over 150 other countries worldwide.

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9 COMMENTS

  1. “inflation is projected to rise to 6.4 percent in 2022.”

    I stopped reading right there as this is a bunch of hogwash by the IMF premised on false data by the government. Inflation would mean a 6 crate of eggs would increase from $3.75 to $3.99. It is now $4.79 at the cheapest. Inflation 26%. Fuel at the start of the year was $13.95 a gallon, now it is $17.90. 28% inflation. A restaurant meal costing $20.00 in January is now $25.00. 25% inflation. A 20-lb LPG was $28.00 at start of the year, now it is $43.70. That’s 56% inflation. Not to mention you get far less now than what you did before.

    So stop the lies and come better.

  2. We need the reference. Are you telling me St Lucia is the only country affected by the current situation or most affected. This article is framed in a way to vindicate the government and politicians in power. What a load for cr@p.

  3. @ Oh Really
    You do know that the IMF does a report on most countries around the globe, right? This is just Saint Lucia’s report, it doesn’t your narrative so you want to question it.

  4. Wow, why are the political hacks still so bitter.
    Economist I was hoping you would have made a more meaningful contribution to this article. National inflation is calculated on the average and not on selected individual items. Perhaps you were absent from class on that day.

    IMF will never suck up to any government, it is more likely to make governments look bad.

    Sorry the report does not fit your agenda.

  5. You really are a simpleton if you see anything political about that. Inflation is calculated on a a basket of goods. That basket can change to fit any agenda. My basket of goods includes the above. My basket of goods has seen inflation of at least 30%. If you really think inflation has gone up only 6.4% you need to go back to stage 1 and learn basic arithmetic. And you need to get your head checked.

  6. Well well well what have here ?? PM Pierre pal you have been echoing this BEFORE and AFTER you assume office . Read the 4th paragraph FROM THE BOTTOM UP, THIS HAS ALLEN MICHAEL CHASTANET WRITTEN ALL OVER IT. Now hear these Yellow clowns with all their rabble-rousing the IMF this, the IMF is that, Hello !!! Allen Chastanet is the one who brought the IMF loan Sharks to St Lucia’s shore. I am glad to this report came out, this is an INDICTMENT OF HIS FAILED GOVERNMENT, FAILED POLICIES, FAILED TICKLE DOWN ECONOMICS I PRESENT TO YOU DUBAI. Now St Lucia is in deep Door Doo, and I am willing to bet my life savings you will not hear a word from that RAPIST BANDIT on the matter not a word, not a word, WHAT A DISGRACE oh my God, but they want him back in power go figure. CLOWNS !!!

  7. Economist just saying , you are a real JACK ASS you have changed the IMF national report/ forecast to your personal inflation report. Real voodoo economics

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