The IMF Validates Saint Lucia’s Economic Resurgence

By Caribbean Business Report

The International Monetary Fund (IMF) is projecting another year of GDP growth for Saint Lucia. Following the conclusion of its annual Article IV Consultation with Saint Lucia in February 2025, the IMF endorsed the economic outlook for the local economy, which projects GDP growth of 3.7% for 2024. In an official statement issued by the IMF on March 13, 2025, the Article IV Consultation concluded St. Lucia’s economy has normalized.

Given the country’s heavy dependence on tourism, the pandemic led to a sharp contraction in 2020 followed by a surge in growth in 2021–23. Conditions have now normalized, and strong tourist arrivals and supportive fiscal policy are boosting growth and reducing unemployment—long an issue for St. Lucia—while favorable commodity prices are helping to bring inflation down. The referenced supportive fiscal policy implemented by the Pierre-led Administration has driven unemployment down to a historic low of 10.8% nationally in 2024.

Also, Saint Lucia recorded its best-ever fourth quarter last year. Unemployment declined to single digits at 8.8% between October and December 2024  

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