St. Lucia: 2025 Article IV Consultation-Press Release; and Staff Report

The 2025 Article IV Consultation discusses that St. Lucia has staged a robust performance in recent years. The economy is projected to grow by 1.7 percent in 2025, following a strong expansion of 4.7 percent in 2024, with weaker tourism but strong construction activities, domestic demand and credit expansion. The economy is then expected to rebound in 2026 from tourism pickup. Inflation was negative in 2024 from lower international food and energy prices, and it is projected to increase to 0.8 percent in 2025. Despite improved net exports, the current account deficit increased in 2024 from a widening net income deficit but is expected to decline over the medium term. Public finances are improving with primary balance surpluses recorded for three consecutive years. are key to enhancing resilience and affordability. St. Lucia’s economy is highly open, driven by tourism services and imports of goods, which heightens vulnerability to external shocks. Import concentration increases living costs and external vulnerability.