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COVID-19 Update on the Economy
- 1. Presentedby:PrimeMinisterHon.AllenM.Chastanet COVID-19UPDATE ONTHEECONOMY GOVERNMENT OF SAINT LUCIA'S
- 2. -10% ECONOMIC DECLINE DUE TO COVID-19 4% BEFORE COVID-19 2020/2021 ECONOMIC GROWTH FORECAST -14% AFTER COVID-19 ECONOMIC PROJECTION BY IMF -18% ECCB PROJECTS CONTRACTION IN THE ECCU ProjectedEconomicDeclines
- 3. $200Million DEFICIT PROJECTED FOR 2020/2021 DUETO COVID-19 EASTERN CARIBBEAN DOLLARS PROJECTED REVENUE SHORTAGE OF
- 4. INTEREST AMOUNT PRINCIPAL AMOUNT $81.1MILLION $531.2MILLION TOTAL DEBT DUE BETWEEN: APR-SEP 2020 $612.3MILLION DEBT PAYMENTS DUEAPRIL-SEPTEMBER2020
- 5. ESTIMATED GOVERNMENT EXPENDITURE FOR APRIL 2020 $110MILLION ESTIMATED GOVERNMENT REVENUE FOR APRIL 2020 $40MILLION (SALARIES & DEBT PAYMENTS) $43MILLION MONTHLY COST OF GOVERNMENT SALARIES
- 6. PHASE 1: CRISIS MANAGEMENT InvolvesmanagingtheoutbreakofCOVID-19in thelocalecnonomy.Thisisexpectedtolastfor theperiodApriltoJune2020 PHASE 2: STABILIZATION Thisphaseiscurrently beingrolledoutandwill seeaphasedreopeningoftheEconomyand is expectedtocovertheperiodJulyto September2020. PHASE 3: RECOVERY Thisphaseisexpectedtocommencepost September2020whichiswhenthe Governmentwillbeinabetterpositiontobegin recoveryefforts. 3PHASES TODEALWITH THE COVID-19 ECONOMIC CRISIS
- 7. INCOME SUPPORT WorkwiththeNICtoprovideacash injectiontosupportselfemployedpersons whohavelostincomeopportunitiesdueto COVID-19 STATUTORY BODIES SUPPORT Assiststatutorybodiesaffectedby COVID-19withacashinjectionprimarilyfor salariesandwages COVID-19 MANAGEMENT Meetthecostsassociatedwiththe treatmentandcontainmentofCOVID-19. HEALTH FACILITIES Meettheincreasedcostofoperatingthe OKEUHospital,operationsofVictoria Hospitalasarespiratoryhospitaland maintaintheotherrespiratoryclinicsand quarantine/isolationfacilities COVID-19HEALTH&ECONOMICSUPPORT
- 8. CASH PAYMENT IN FULL OR 100% FULL SALARY FOR ALL PUBLIC SERVANTS FROM Grades1to6 PUBLIC SECTOR WAGES THIS APPLIES TO 4,300 PUBLIC SECTOR WORKERS
- 9. 50% OF SALARY IN CASH 50% PAID IN GOVERNMENT BONDS PAYMENTFORPUBLICSECTOR WORKERS GRADES7-18 THIS APPLIES TO 5,392 PUBLIC SECTOR WORKERS FOR 3 MONTHS GOVERNMENT BOND HOLDERS WILL EARN 3% INTEREST ON THE VALUE OF THEIR BONDS
- 10. 25%ofSalarypaidinCash 75%paidinGovernmentBond PAYMENTFORPUBLICSECTOR WORKERS GRADES19-21 GOVERNMENT BOND HOLDERS WILL EARN 3% INTEREST ON THE VALUE OF THEIR BONDS APPLIES TO APPROXIMATELY 91 PUBLIC SECTOR WORKERS FOR 3 MONTHS
- 11. PENSIONERS WILL BE PAID THEIR FULL EMOLUMENTS Thisappliesto2,909Publicsectorpensioners PAYMENTS TO PENSIONERS
- 12. WHATISA GOVERNMENT BOND? A GOVERNMENT BOND IS A DEBT SECURITY ISSUED BY A GOVERNMENT TO SUPPORT GOVERNMENT SPENDING AND OBLIGATIONS. GOVERNMENT BONDS ISSUED BY NATIONAL GOVERNMENTS ARE OFTEN CONSIDERED LOW-RISK INVESTMENTS SINCE THE ISSUING GOVERNMENT BACKS THEM.
- 13. GOVERNMENT REVENUE APRIL2017-2020 2017 2018 2019 2020 125,000,000 100,000,000 75,000,000 50,000,000 25,000,000 0 A60% DROPIN REVENUEFOR APRIL2020
- 14. Operational Cost of OKEU Hospital $70 Million Yearly Operational Cost of Victoria Hospital $35 Million Yearly
- 15. 201967% 202059.6% DEBT TO GDP RATIO DECLINE
- 16. CONSTRUCTION SECTOR REOPENING Construction firms, Quarries and Concrete Producers to reopen under strict COVID-19 Protocols
- 17. THERE IS NO PROBLEM WE CANNOT OVERCOME, IF WE TACKLE IT TOGETHER. IF THERE WAS EVER A TIME FOR US TO BE ALL IN, IT IS NOW. STAY STRONG, STAY UNITED!