Saint Lucia

Saint Lucia's economy grew by 1.3 percent in 2025, slowing from 4.7 percent in 2024. Growth was held back by weaker tourism, with stayover arrivals estimated to have fallen 2 percent. Construction maintained strong momentum, underpinned by the continuation of major projects, and the agricultural sector posted solid growth of 5.6 percent.

Fiscal balances came under pressure in 2025. Policy measures to ease the cost of living, including higher income tax allowances and the removal of VAT and import duties on selected items, are expected to have reduced revenue collection, while expenditure rose on account of higher minimum government pensions and higher goods and services spending. Public debt is estimated at 78 percent of GDP, above the 60 percent of GDP target set for Eastern Caribbean Currency Union members by 2035.

Overall inflation is estimated at 0.9 percent, driven by the removal of import duties on all price-controlled foods and the elimination of VAT on several food items — measures that could benefit poor households for whom food accounts for a high share of expenditure. Inflation is expected to rise to 2.1 percent in 2026 following a global surge in oil prices, before stabilizing at 2.0 percent through 2028.

Monetary poverty is estimated at approximately 5.7 percent in 2025 (US$8.30/day, 2021 Purchasing Power Parity). However, poverty reduction is projected to level off in the medium term, with about 5 percent of the population projected to remain poor, given the moderation in economic growth.

The outlook is subject to several risks, including economic slowdowns in key tourist-origin countries, further increases in oil prices due to the conflict in the Middle East, lower revenues for the Citizenship-by-Investment Program. It is also exposed to setbacks in fiscal consolidation, delays or cost increases in large investment projects, and natural disasters, all of which could disproportionately impact poor and vulnerable households.

Through the OECS Regional Health Project, the World Bank is supporting Saint Lucia to strengthen preparedness for public health emergencies. The project is financing investments to improve laboratory infrastructure and health facility resilience. It is also supporting disease surveillance systems, emergency management capacity, and institutional strengthening through training and technical assistance.

Under the Saint Lucia Health System Strengthening Project, the government is implementing reforms to improve the efficiency and quality of service delivery. These include the introduction of Performance-Based Financing in health facilities and the phased rollout of strengthened maternal and child health services.

The Unleashing the Blue Economy of the Caribbean Project supports improved governance, resilience, and sustainable management of marine and coastal resources.

Access to finance for local businesses is being expanded through the Micro, Small ,and Medium-Sized Enterprise Guarantee Facility Project. The project provides credit guarantees to support lending to MSMEs across the Eastern Caribbean, including women-owned and women-co-owned enterprises.

In the digital sphere, the Caribbean Digital Transformation Project supports improvements in digital infrastructure, digital government systems, and digital skills. These efforts help expand access to digital services for citizens, businesses, and public institutions.

Saint Lucia has also secured a Disaster Risk Management Development Policy Credit with Catastrophe Deferred Drawdown Option (Cat DDO) through World Bank disaster risk management financing, giving the country rapid access to emergency funds and supporting reforms to strengthen disaster preparedness.

The OECS Country Climate and Development Report (CCDR) provides strategic climate adaptation diagnostics and priority actions for Eastern Caribbean states, including Saint Lucia

*Last Updated: March 17, 2026

The World Bank Group’s engagement in Saint Lucia is guided by the  Regional Partnership Framework for the Organization of Eastern Caribbean States (OECS).

The strategy aims to help the country strengthen its resilience to climate change and other shocks; improving human capital and social inclusion; and enhancing competitiveness for more and better jobs.

In Saint Lucia, this means supporting reforms and investments that bolster health systems, expand access to social protection, diversify the tourism-dependent economy, and unlock opportunities in the blue economy. Regional initiatives complement national programs, ensuring that the country benefits from both targeted local support and the shared knowledge and scale of OECS-wide collaboration.

The partnership also  leverages the complementary roles of  IBRD/IDA, IFC, and MIGA  to mobilize private capital, reduce investment risks, and support resilient, inclusive growth.

*Last Updated: March 17, 2026