IMF Staff Country Reports

The 2024 Article IV Consultation highlights that St. Lucia’s tourism-dependent economy has normalized after the pandemic. Gross domestic product growth is expected at 3.7 percent in 2024, on strong tourism, construction, and manufacturing activity. Over the medium term, once planned infrastructure and hotel investments approach completion, growth is projected to slow to a modest 1.5 percent over the medium term. Inflation is expected to rise to 2 percent over the medium term as global input costs normalize. Risks to the outlook are tilted to the downside and include investment delays and large debt rollover needs. The current account deficit is anticipated to narrow further over the medium term on account of stronger tourism and lower fuel prices. St. Lucia is vulnerable to a global slowdown and supply disruptions, as well as natural disasters and climate change. On the upside, stronger-than-expected growth in tourism and construction could provide a positive boost to the economy.