St Lucia suffering from unemployment crisis
During the IMF-World Bank annual meeting, St Lucia Prime Minister Allen Chastanet has admitted that the country is suffering from enormous unemployment crisis because of the COVID-19 pandemic.
“The country has also suffered massive unemployment, due to the closure of the tourism sector, all necessitating social and economic relief measures aimed at providing support to the poor and vulnerable, and those directly impacted as a result of the crisis.”
Chastanet said that prior to COVID-19, the country has made significant progress with its economic growth indicators.
But like many nations in the Caribbean, St Lucia’s economy has been badly impacted by the COVID-19 pandemic.
“Many countries, particularly Small Island Developing States, are trying to respond to the pandemic with large segments of their economy closed down, resulting in reduced revenues. This turn of events has in the immediate term led to the need to borrow, in order to bridge the revenue shortfall and build capacity in the health sector, to respond to COVID-19 related illness and to mitigate the spread of the coronavirus.”
The Prime Minister added that the government had to increase expenditures on healthcare-related measures, such as the establishment of quarantine and isolation centres, rehabilitation of the Victoria Hospital, move to OKEU Hospital, increase in testing capacity, the acquisition of medical equipment and supplies, hiring additional healthcare workers and maintaining health protocols.
However, Chastanet noted that despite the effects of the pandemic, the Saint Lucia Government has embarked upon a multiplicity of policy responses to help lessen the effects of the crisis, and bring relief to the people through the following programs:
- COVID-19 Health Response Plan
- Social Stabilization Programme
- Economic Recovery & Resilience Plan (ERRP)
In closing, Chastanet broken down key recommendations from Caribbean countries which aims to help achieve economic recovery and fiscal stability amid the new normal.