The Government of Saint Lucia is watching closely the economies of its source markets for tourism and investment saying uncertainties in these markets could pose a threat to Saint Lucia.
Prime Minister Allen Chastanet made the announcement during the delivery of his budget address earlier this week.
“We note with interest, the increasing trade tensions between the US and China, and we are aware of the possible fallout this could have on global trade. The World seems to be retreating from globalization as nationalism takes a deeper hold in the US and across Europe. Brexit remains an unresolved crisis with few commentators able to reach a consensus on the long-term effects it will have on the global economy,” Chastanet said.
“Uncertainty in the economies of our source markets for tourism and investment could pose a threat to us and we are watching these developments closely. It is therefore even more critical that we position ourselves to accelerate growth in order to mitigate any external shocks that any of these issues could give rise to,” he added.
The prime minister believes that the experience of other countries in the Caribbean is instructive for Saint Lucia because it allows Saint Lucia to avoid some of the pitfalls that can hamper economic expansion and provides real-time examples of strategies that can be beneficial to Saint Lucia.
For example, he highlighted the benefits of strong fiscal management on Grenada’s growth path, as well as the vigorous programme being undertaken by Barbados to restructure debt and curb expenditure to stabilize their fiscal position.
“Across the ECCU (Eastern Caribbean Currency Union), adverse weather events continue to pose a threat to our agriculture and in extreme cases, such as Dominica, this can grind economic activity to a perilous halt. It is therefore critical that we continue to build resilience into our infrastructure and among our people,” Chastanet said.