Saint Lucia Economy to Grow 1.1%

The World Bank says Saint Lucia's economy is projected to grow by 1.1 per cent in 2026, following an estimated 0.6 per cent contraction in 2025. The forecast is part of the World Bank's October 2026 Latin America and the Caribbean Economic Update.

Growth across Latin America and the Caribbean is projected at 2.2 per cent in 2026, with significant differences among countries. Guyana and Suriname are benefiting from oil-driven expansions, while tourism-dependent island economies are experiencing a more moderate post-pandemic recovery.

The World Bank identifies artificial intelligence as a potential new source of productivity and economic growth for the region. However, the report cautions that access to AI technology alone will not automatically translate into higher productivity.

The region's main constraint is its ability to adopt and adapt AI effectively, known as absorptive capacity. The World Bank highlights small AI, low-cost, practical applications designed to address specific problems, as one avenue for developing economies to benefit from the technology.

Businesses across Latin America and the Caribbean are already adopting AI, but much of that use remains limited to basic tasks. The report identifies gaps in managerial capabilities and technical knowledge as major barriers to deeper adoption.

The World Bank warns that AI's impact on employment will extend beyond traditional office-based work. Several categories of workers could face different levels of exposure as artificial intelligence and physical automation develop.

The World Bank forecasts growth of 2.1 per cent in 2027 and 1.9 per cent in 2028 for Saint Lucia. The report says such tools could put specialised expertise within reach of small businesses, workers and public service providers.