Castries, Saint Lucia – The Economic Commission for Latin America and the Caribbean (ECLAC) is projecting that Saint Lucia’s economy will realise the highest GDP (Gross Domestic Product) growth among Eastern Caribbean Currency Union [ECCU] member states in 2022.

The sound fiscal policies rooted in the Phillip J Pierre Administration’s maiden budget of 2022/23, have set the nation’s GDP to increase by up to 8 per cent this year.

This projection was published in ECLAC’s Annual Report – Economic Survey of Latin America and the Caribbean 2022: Trends and challenges of investing for a sustainable and inclusive recovery.

In addition, Saint Lucia’s accelerated GDP growth trajectory of 8 per cent outpaces that of Barbados and the ECCU member states.

Moreover, in the first eight months of 2022, Pierre and his Cabinet have engaged various investors who have expressed interest in the country and want to develop and expand accommodation properties and introduce internationally recognised hotel brands to the island.

The prime minister has confirmed the prospective value of these development proposals exceeds EC$320 million.

Domestically, two routine economic surveys have each produced encouraging conclusions on Saint Lucia’s economic performance during the first quarter of 2022.

The quarterly Labour Force survey conducted by the Central Statistical Office [CSO] for the period January to March of this year estimated the national unemployment rate stood at 16.1per cent.

Before 2019 and the ensuing economic impact of the coronavirus pandemic, first-quarter unemployment levels have consistently remained above 20 per cent dating back to more than six years.

In addition to that, the Saint Lucia Chamber of Commerce, Industry and Agriculture (SLCCIA) and its vast membership collectively hire tens of thousands of the country’s natives.

In July, the chamber published its Business Performance survey which assessed the performance of its members for the [first quarter] period of January to March of 2022. The results of the chamber’s survey correspond with the CSO’s first-quarter estimates and also underpin Saint Lucia’s economic resilience in the face of various external pressures and shocks.

According to Executive Director of the Chamber of Commerce Brian Louisy, “business confidence appears to be on the rise with 66 per cent of respondents forecasting increased turnover over the next 12 months while 71 per cent of respondents forecast an increase in business profitability over the same period while only 29 per cent report worsened cash flow relative to the previous quarter,” said Louisy.

The CSO estimated the island’s labour force for the period January to March at approximately 104,262 workers, which was due to more than 83 per cent of Saint Lucia’s labour force being employed during the first quarter of this year.

Pierre hopes the implementation of targeted fiscal policies by his Administration, in concert with the rollout of his innovative Youth Economy agency, will create a vibrant and more conducive economic space that encourages private sector expansion and also decisively address youth unemployment.