By Caribbean News Global contributor
CASTRIES, St Lucia – The results of the latest Chamber Business Performance Survey, report say the ‘economic recovery from the Covid-19 pandemic continues, with business performance maintaining a positive trend. The economy continues its recovery to pre-Covid levels, with some way still to go.’
However, detailed information by sector region and by size is available to Chamber Members on request.
According to the St Lucia Chamber of Commerce, Industry and Agriculture, press release December 20, 2023:
“ The post-pandemic issues of supply-side bottlenecks remain evident in continuing price escalation, driven by external factors, compounded by the Ukraine/Russia war.
“The second quarter of the year April-June 2023 was better than the same period of 2022, with business performance indicators generally positive. Sales, revenue, and workforce hiring are all reported better than the previous year.”
Perennial issues: Cost of labour – human resources – inflation and crime
Interestingly, said the Chamber Business Performance Survey, “ firms are now reporting that the cost of labour is now a major factor driving increases alongside the cost of goods. This point is reinforced later in the survey when issues related to the availability of human resources are cited high in the ranking of major issues affecting business. The perennial issues of inflation and crime remain high on that scorecard.”
Health and security levy
This Survey (Take 9) introduced questions regarding the recently implemented Health and Security Levy (H&S), seeking to explore issues of preparedness, and sufficiency of information concerns during implementation.
“The H&S levy was not in effect during the review period so no substantive comment can be made on the impact,” but, “for the first time issues of spatial location was introduced.”
Looking forward in future surveys, said the St Lucia Chamber of commerce, industry and agriculture, “ hopefully, we will be able to examine if any, differential in regional economic performance.”
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, according to a statement from the Office of the Prime Minister, (OPM) Thursday, December 7, 2023.
The government of Saint Lucia received CariCRIS rating, income and economic structure: BBB+ (Adequate).
The three largest components of real GDP for 2022 were:
- Accommodation and food services (18.2%);
- Real Estate activities (10.7%);
- Wholesale and retail trade (10.6%).
“While this diversity exists as per industry classifications, tourism-related activities remain the lead driver of economic activity. Additionally, tourism continues to employ a significant share of the labour force. Real GDP improved by 18.1 percent in 2022 compared to the prior year’s improvement of 12.2 percent,’ OPM/Caribbean Information and Credit Rating Services Limited (CariCRIS).
CariCRIS affirms BBB+ (Adequate) for St Lucia – let’s talk inflation
