On Tuesday this week the World Bank released its mid-year Global Economic Prospects report, which included updated GDP growth projections for Latin America and the Caribbean. While there was positive news for Guyana, with 4.4% growth projected, the news was not good for Saint Lucia. Now burdened with a fiscal deficit of EC$70+ million and 24% unemployment, the island can expect no more 0.9% economic growth, according to the World Bank.
During an address to the nation Tuesday evening—the same day the World Bank figures were released—prime minister Kenny Anthony explained that the overall deficit, which currently stands at 5.7%, needs to be in the region of 3% and lower.
“Our Debt-to-GDP ratio of 73.6% should be no higher than 60%,” he said. “Most of the studies indicate that whenever the debt-to-GDP ratio is higher than 55%, it hurts the growth prospects of the country.”
According to the World Bank report, regionally growth remained “broadly flat” in Latin America and the Caribbean, reflecting “stable or declining commodity prices, the continued slowdown in China, the drop in first quarter US GDP growth and domestic challenges.”
The report revealed that some countries in the region did manage to post solid growth, among them Guyana, the Dominican Republic at 4 per cent and Haiti at 3.6 per cent.
No data was presented for Antigua, the Bahamas, Barbados or Grenada.
According to the World Bank, the Latin America and the Caribbean region stand to generate a modest 1.9 per cent increase in regional GDP in 2014, with growth accelerating to 2.9 per cent in 2015 and 3.5 percent in 2016.
Compare this to growth in the developing countries of the Middle East and North Africa region, which is expected to pick up gradually to 1.9 percent in 2014 (0.1 percent in 2013) and 3.6 percent in 2015 and 3.5 percent in 2016.
Developing countries are headed for a year of “disappointing growth” as first quarter weakness in 2014 has delayed an expected pick-up in economic activity, the report says. It goes on to note that bad weather in the United States, the crisis in Ukraine, rebalancing in China, political strife in several middle-income economies, slow progress on structural reform, and capacity constraints are all contributing to a third straight year of sub five per cent growth for the developing countries as a whole.
“Growth rates in the developing world remain far too modest to create the kind of jobs we need to improve the lives of the poorest 40 per cent,” said World Bank Group president Jim Yong Kim in a statement. “Clearly, countries need to move faster and invest more in domestic structural reforms to get broad-based economic growth to levels needed to end extreme poverty in our generation.”
Tolls when you leave districts Oh Lord help help help whats in the Gleaner
It sickens me to know that stlucia is fixable…..not easy…not fast…but guaranteed results in 1 year at least…..tolls for private cars as they leave and enter districts……heavy fines for pollution….and improper garbage disposal ect…..no more business as usual with all that new income we can pay old irresponsible bills and pay to fix schools….hospital facilities ….police stations…court houses…..much needed rehab centers…….stlucia it’s time to fire uwp and slp it’s time for s….t…..l….u…c….I….a…..
Call a referendum…….on hanging……on stiffer laws for rape…..gun crime….spouse abuse….ect…..fix old colonialistic governance laws…….tax and regulate ganja…..increase ten fold taxes on booze and tobacco……aa….I dreaming Kenny in charge
What is the history of St. Lucia Government bond issues since 1997? I would like to know amount sold in Government bonds from 1997 -2008? When is all that debt due back for repayment?
In 2008 SLU took a $10M loan from IMF, has that money been repaid and if not how much of it is in the deficit?
I think we should plant lots of tobacco and get our people to buy more of what we produce, stop buying Gernitically Modified food, from oversea`s, another thing we can do is look to the rich countries to invest they monies into building more hotels where we can creat jobs, since america got involved, england has turn her back on us, remember went england payed good money for the banana,
,Evil America has destroy that,
Until St. lucia get Russia/Qatar/Chinese or another nation to drill for oil or a military base the nation will suffer, trave to St. Lucia is expensive from the UK/US best best is to come up with a plan that no one in the region has to create revenue.
“Our Debt-to-GDP ratio of 73.6% should be no higher than 60%,” he said. “Most of the studies indicate that whenever the debt-to-GDP ratio is higher than 55%, it hurts the growth prospects of the country.”
This includes your 15% cut ? or,
Debt to Government Delinquency & Procrastination is what you should have said.
better days better days…jobs jobs jobs…EN ROUGE EN ROUGE ENROUGE.
Cough cough cough cough yeeeesss Mr Kim Ire star. You seem to be missing one very important ingredient, the lucrative profits that can and will be earned from the cultivation of Ganja as a cash crop. Mr Kim there is a lot of gold in them hills you should send a rep or better yet come yourself and visit Kings Estate I will personally give you a tour you will be a honorable distinguish guest. I will rap up a special draw for you and the madam Luican Gold and Ecualytus man it’s to die for. I believe right there and then you will see that Ganja is the answer to increasing St Lucias GDP and finacial stability.