IMF reports favourable assessment of Grenada’s recent economic developments

IMF reports favourable assessment of Grenada’s recent economic developments

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St George’s, Grenada: The International Monetary Fund (IMF), a leading global financial institution, released its latest assessment of Grenada’s recent economic performance, and the results are highly positive. This follows approval by the IMF’s Executive Board on 17 July 2023, according to the update by the Government of Grenada.

The Executive Board assessment and the full staff report can be accessed via this link: https://www.imf.org/en/Countries/GRD. The previous assessment was conducted in May of 2022.

The IMF Report highlights Grenada’s achievements in navigating the recent crises, fostering robust economic growth, implementing prudent fiscal policies, and undertaking comprehensive structural reforms, underscoring Government’s prudent economic management in the past year.

The Grenadian economy grew strongly in 2022 by 6.4 percent and is on track to expand further in 2023 by 3.9 percent, surpassing initial projections for both years. Global inflationary pressures were lessened by the Government’s swift policy response, including subsidising basic food and fuel prices.

Public finances remain strong, and public debt is back on a downward path and is assessed to be sustainable. The financial sector is stable, liquid, and resilient to shocks amid tightening global financial conditions.

The Government of Grenada also stated that IMF’s evaluation also highlights key recommendations to strengthen and build the resilience of the Grenadian economy, including inter alia, improving competitiveness in tourism, agriculture, and other sectors, better targeting of social assistance programmes, increasing the efficiency of both tax and public spending and reforming the National Insurance and Public Sector Pension Schemes, according to the Government of Grenada.

The Minister for Finance, Dennis Cornwall, noted that the solid economic performance and outlook for the Grenadian economy is a testament to the sound policies implemented by this Government, including the payment of retroactive public sector pensions, measures to reduce the impact of food and fuel prices on the population, and measures to improve the implementation rate of key projects.

Grenada is on a 12-month review cycle. The next assessment will take place around May 2024.