Prime Minister Dr Terrance Drew has effectively worked to reduce outstanding payables owed to Government Contractors and service providers in the private sector. He has taken several initiatives to address the situation and cut the stock of Domestic payables in Half.
Reportedly, Prime Minister Dr Terrance has been working to launch measures since 2021. In March 2021, the Government of Saint Lucia owed $174 million to government contractors and service providers.
Prime Minister Pierre came to the Office in July 2021 and immediately introduced sound fiscal policy measures to address the spiralling stock of domestic arrears owed to the private sector.
The Fiscal Policies were introduced to shield Saint Lucian consumers from inflation. It was also launched to create conducive economic conditions to encourage expansion and attract investment to Saint Lucia.
Today, these measures have successfully started to bring benefits. The Prime Minister’s fiscal policies are beginning to bear fruit. By September 2023, domestic payables had declined by more than 50%, from $174 million in 2021 to $88 million.
Releasing more than $80 million worth of domestic payables into the economy promotes business continuity and stimulates growth in the private sector.
Through these initiatives, Saint Lucia’s economy has begun to boost. As per 2022 estimates, the nation’s expected growth was up to 8%. Businesses have effectively forecasted increased profitability over the next 12 months.
At least 20 private sector-led development projects, collectively valued at more than XCD 320 million, have also been approved by the Pierre Administration in the last eight months.
The Prime Minister’s fiscal policies have also opened Saint Lucia in 2023 with the best-performing economy in the ECCU. The Nation has recorded back-to-back years of GDP growth in 2021 and 2022.
Prime Minister Philip J. Pierre’s fiscal policies have laid the foundation for Saint Lucia’s economy to move from recovery to expansion.