Ultimately, the organisation found Saint Lucia’s economy to be a BBB+ (Adequate) and affirmed the country’s position within the larger landscape of the OECS. The Office of the Prime Minister made this information public on December 7, 2023.
“Saint Lucia’s nominal GDP remains the largest in the Organization of Eastern Caribbean States (OECS) sub-region at US $2.3 billion in 2022. The economic base continues to be among the most diversified in the OECS,” the OPM declared.
It is an undisputed fact that tourism is the largest GDP contributor on-island. However, the government has embarked on policies to diversify the landscape, although unable to unseat the impact tourism has. For instance, there is an increased emphasis on manufacturing and agro-processing.
Saint Lucia, although not wholly dependent on banana exports, continues to export regionally. Emerging sectors in honey and sea moss cultivation and manufacturing are promising.
“Saint Lucia is considered to be one of the world’s - especially the region’s - top honey producers,” Agriculture Minister Alfred Prospere.
The focus now, according to Prospere, is to encourage honey and sea moss cultivators to produce value-added goods by processing the raw materials in-country.
“What I believe is lacking in the sector is value-added [products]. We need to see more of the processing done locally so we can export,” Prospere highlighted. Currently, there 64 sea moss exporters in Saint Lucia.
The government’s flagship Youth Economy Agency also aids in the bid to diversify the economy. The YEA has legitimised the Micro, Small, and Medium Enterprises sector by making grant financing available to clients whilst the newly secured USD 6 Million by Prime Minister Pierre from the Caribbean Development Bank will provide additional grant funds and loans at concessionary rates to young people. The World Bank has recently underscored the importance of MSMEs to the economies of developing countries like Saint Lucia’s.
Whilst the Youth Economy is targeted to persons from 18-35 years of age, the MSME Grant-Loan facility has been providing businesses with grants of up to 70% and loans of 30% at a concessionary rate of 3% interest. Hundreds of businesses have benefitted in the first round and the public looks forward to the second call for submissions.
The Pierre Administration has taken to manufacturing, entrepreneurship, and agro-processing to create a more self-sustainable economy that is not entirely dependent on tourism. The fruits of this move can only be assessed in the long term. Meanwhile, the OPM announced that the government will be looking to public consultation as a measure of the public’s sentiments to craft a “comprehensive” 2024\2025 budget