IMF Staff Country Reports

St. Lucia staged a robust recovery after the pandemic, buoyed by tourism
rebound. 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. Growth is expected to rebound in 2026 as
tourism picks up and to converge back to its potential rate of 1.5 percent over the
medium term as tourism stabilizes and planned infrastructure and tourism-related
projects are completed. Inflation turned negative in 2024 from easing international food
and energy prices, then increased modestly in H12025. 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 during three consecutive years. Nonetheless, high public debt stock
and large rollover needs represent important vulnerabilities.