## St. Lucia: 2019 Article IV Consultation-Press Release; and Staff Report

_IMF Staff Country Reports, February 24, 2020_

## Source details

**Canonical URL:** [St. Lucia: 2019 Article IV Consultation-Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2020/02/24/st-49070)

## Other formats

- [Markdown version](/en/publications/cr/issues/2020/02/24/st-49070/index.md)
- [Structured JSON version](/en/publications/cr/issues/2020/02/24/st-49070/index.json)
- [Bundle manifest](/en/publications/cr/issues/2020/02/24/st-49070/bundle-manifest.json)

## Bibliographic details
- Published: February 24, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513530963.002

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### Near-term outlook
- Near-term growth prospects are favorable, supported by large infrastructure investment and robust tourist inflows.
- Diminishing policy buffers further weaken the country’s resilience to external shocks against the backdrop of a precarious global outlook.

### Risks and longer-term constraints
- Longer-term growth continues to be impeded by high public debt, lingering vulnerabilities in the financial system, and structural impediments to private investment.
- Supply-side constraints that need to be addressed to unlock potential growth:
  - improving the business environment
  - reducing energy costs
  - enhancing labor productivity
  - further diversifying the economy

### Financial sector and oversight
- Completion of long pending legislative initiatives, alongside stronger regional and domestic financial oversight, should provide banks with incentives to strengthen their balance sheets and increase the efficiency of financial intermediation.
- There is a need to draw on supervisory and regulatory tools to respond to emerging risks from rising overseas investments of the banks and the rapid expansion of lending by credit unions.

### Climate, disaster response, and capacity gaps
- The authorities are recommended to should step up efforts to address the institutional, financing and capacity gaps in its climate and disaster response strategy.

### Policy recommendations (summary)
- Complete long pending legislative initiatives to strengthen bank incentives and financial intermediation.
- Strengthen regional and domestic financial oversight.
- Use supervisory and regulatory tools to manage risks from overseas bank investments and rapid credit union lending expansion.
- Step up efforts to address institutional, financing and capacity gaps in climate and disaster response.
- Implement supply-side reforms to improve the business environment, reduce energy costs, enhance labor productivity, and diversify the economy.

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## Content in this bundle

- **1. Fiscal: Major Tax Measures**
  - [1. Fiscal: Major Tax Measures (Markdown version)](/-/media/files/publications/cr/2020/english/1lcaea2020001.pdf.md){rel="alternate" type="text/markdown"}
  - [1. Fiscal: Major Tax Measures (PDF)](/-/media/files/publications/cr/2020/english/1lcaea2020001.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2020/02/24/st-49070_