Saint Lucia’s economy is projected to grow by 1.1 per cent in 2026, following an estimated 0.6 per cent contraction in 2025, according to the World Bank’s October 2026 Latin America and the Caribbean Economic Update released Tuesday.
The World Bank forecasts growth of 2.1 per cent in 2027 and 1.9 per cent in 2028.
The report says growth across Latin America and the Caribbean is projected at 2.2 per cent in 2026, with significant differences among countries.
In the Caribbean, it notes that Guyana and Suriname are benefiting from oil-driven expansions, while tourism-dependent island economies are experiencing a more moderate post-pandemic recovery and facing high energy and transportation costs.
Against this backdrop, the World Bank identifies artificial intelligence (AI) as a potential new source of productivity and economic growth for the region.
However, the report cautions that access to AI technology alone will not automatically translate into higher productivity.
It says the region’s main constraint is “absorptive capacity” — the ability of governments, businesses and workers to adopt and adapt AI effectively.
The report highlights “small AI” — low-cost, practical applications designed to address specific problems — as one avenue for developing economies to benefit from the technology.
Such tools could put specialised expertise within reach of small businesses, workers and public service providers, including through basic mobile phones, the report says.
But it warns that AI-related gains could remain concentrated among a relatively small group of highly productive firms if smaller businesses lack the skills, management capabilities and infrastructure needed to use the technology effectively.
According to the report, businesses across Latin America and the Caribbean are already adopting AI, but much of that use remains limited to basic tasks such as drafting text and finding information rather than integrating AI into core business processes.
The report identifies gaps in managerial capabilities and technical knowledge as major barriers to deeper adoption.
It also warns that AI’s impact on employment will extend beyond traditional office-based work.
The World Bank identifies several categories of workers that could face different levels of exposure as artificial intelligence and physical automation develop, while noting that occupations requiring complex physical skills or human qualities such as empathy and community ties are likely to be more resilient.
The report recommends targeted workforce interventions, including short-cycle higher education and modern technical and vocational education and training, to help workers transition into more resilient occupations.
For governments, the World Bank recommends prioritising the foundations needed for effective AI adoption rather than attempting to build expensive frontier AI models.
These priorities include stronger data governance, interoperable information systems, secure digital infrastructure and cybersecurity.
The report also recommends helping small and medium-sized enterprises integrate AI into their operations through technical assistance, training and targeted financial support.
It says governments can also play a role as “anchor clients” by adopting digital government technologies and creating demand that supports local AI ecosystems.
The World Bank says the region’s modest growth outlook reflects its current policy environment rather than its full economic potential.
It argues that capturing the benefits of AI will require investment in human capital, digital infrastructure and management practices, while ensuring that productivity gains are more broadly shared.
