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Saint Lucia will have to undertake a wide range of ambitious fiscal and public financial management reforms to keep its economy on the right track, the Caribbean Development Bank (CDB) has said.
Speaking at a live press conference on Thursday, Director of Economics at the CDB Dr Justin Ram said this will ensure the country’s debt profile is placed on a sustainable trajectory.
“The government of Saint Lucia needs to look at fiscal consolidation, structural reforms to improve competitiveness and increase growth, focus on transformative infrastructure project…and focus on strategic liability management to maintain debt,” he said.
Dr. Ram was presenting findings from a report conducted jointly by the CDB and the Eastern Caribbean Central Bank (ECCB), which looked at Saint Lucia’s overall economic strengths and weaknesses.
The CDB official said the government must also focus on growth enhancing reforms, explaining that with high levels of growth, brings down employment and spurs greater investment.
He said the local private sector needs to be the driving force that will help to bring about that change.
It was noted that Saint Lucia like many Caribbean countries, also exhibit some of the same problems experienced in the rest of the region, which is low growth, reflecting high export concentration and high indebtedness.
The new government had sought the assistance of the CDB, to look at Saint Lucia’s economic structure, to determine how they will improve the country’s finances and promote growth.
The CDB official was joined by Minister within the Ministry of Finance Dr. Ubaldus Raymond.
Below is a video of the full press conference: