Joint CDB/ECCB report gives sobering assessment of Saint Lucia economy

Joint CDB/ECCB report gives sobering assessment of Saint Lucia economy

A joint Caribbean Development Bank (CDB) and Eastern Caribbean Central Bank (ECCB) report has indicated an economic growth of 1.2 percent for Saint Lucia in 2015, with a preliminary forecast of a 1.1 percent growth for 2016.

In revealing some of the contents of the report today, Minister in the Ministry of Finance Senator Dr. Ubaldus Raymond,  pointed to a “ glaring” observation in the document  that notwithstanding the recent improvement in the fiscal performance, without certain adjustments, public finances remain unsustainable.

The Minister made the comments at a news conference this morning.

Director of Economics of the Caribbean Development Bank (CDB) Doctor Justin Ram was also present at this morning’s news conference at the studios of the Government Information Service (GIS).

cdb-press-conference-2Raymond told the gathering this morning that according to the document, in the last decade average growth in the economy of Saint Lucia was point nine percent.

“Over the last five years the performance of Saint Lucia’s economy has been generally weak with real output averaging negative .4 percent,” he disclosed.

The Minister observed that in its conclusion, the report notes that assessment of the fiscal situation shows that there is tremendous scope for improvement.

He said that the government was still in the process of reviewing the document and is awaiting a further report from international auditing firm – Ernest and Young.

Raymond explained that the purpose of the news conference was to inform media and public of the latest developments regarding the thrust towards a comprehensive economic agenda for Saint Lucia.

He noted that part of that agenda is to stimulate economic growth and development.

He said the objective of the joint CDB/ECCB report was to secure a diagnosis of the state of the economy before all  the government’s  tax proposals can be fully implemented.

Raymond said that in the interim, the new Allen Chastanet administration has executed a large part of its “Five to Stay Alive” plan, including a reduction in the increase of vehicle licence fees and an increase in school transport and feeding programmes.

He said the amnesty in personal property tax will commence in January 2017, while a promised reduction in Value Added Tax (VAT) will be announced next month.

Raymond told the media that the administration’s economic plan to which it is committed,  hinges on three policy directions – reducing cost of living, spurring economic growth and  curtailing the high level of debt.

He asserted that the joint CDB/ECCB report is a guide to achieving those goals.


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  1. DD
    September 22, 2016 at 4:44 pm Reply

    We knew the economy was bad. That was the cry we felt it At least we are happy there was growth in 2015. So still awaiting…!

  2. DD
    September 22, 2016 at 4:45 pm Reply

    The country need more than the 5, to stay alive. Still waiting

  3. Jacques Boucle
    September 22, 2016 at 5:49 pm Reply

    I am amazed by Dr. Raymond’s incoherence and lack of clarity in articulating his government’s position. His argument lacks specificity. How can you have debt reduction and stimulus at the same time? How much can you stimulate the economy by the simple reduction of menial fees? If this is the economic mediocrity this government has to offer then we are heading to the abyss.

    1. Anonymous
      September 22, 2016 at 6:07 pm Reply

      they called him bush doctor for a reason

    2. global_iAM
      September 23, 2016 at 4:03 pm Reply

      I agree with you totally!

  4. Anonymous
    September 22, 2016 at 8:02 pm Reply

    yes yes yes Dr.Ubaldus you got it right,increase our know what your doin.just think all the money you will be rakein in,of course you must get a cost of living raise for your help,should we say 100,000a year after all we don’t want tax increase to effect your life style now do we.

  5. Boujon Guiyave
    September 23, 2016 at 7:14 am Reply

    We have to note what this Dr. is telling us. On one hand the economy is in bad shape. But on the other he still seem to think it can the wright of a reduction in VAT considering there have already been a reduction in the tax on vehicles. Very interesting times awaits!

    1. global_iAM
      September 23, 2016 at 3:58 pm Reply

      That makes one question his qualification, don’t you think?

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