The International Monetary Fund (IMF) says the St. Lucia economy is recovering and the short-term growth outlook is positive.
But it has warned that the Dr. Kenny Anthony administration still needs to reduce the high public debt and improve competitiveness to improve medium-term growth prospects and reduce high unemployment.
According to the St. Lucia News Online, that assessment was contained in the report of an IMF mission, led by Leo Bonato that left the island last Friday after conducting Article Four consultations.
The team from the Washington-based institution added that high public debt remains a significant vulnerability.
It currently stands at around 80 per cent of GDP – high by international standards – and the IMF noted that ever-increasing interest payments limit the budget resources available for other uses, including high-impact social and infrastructure spending.