IMF Executive Board Completes Fifth Review Under the Extended Credit Facility Arrangement for Grenada and Approves US$2.9 Million Disbursement
IMF News, December 21, 2016
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- IMF Executive Board Completes Fifth Review Under the Extended Credit Facility Arrangement for Grenada and Approves US$2.9 Million Disbursement
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- Published: December 21, 2016
Board decision and disbursement
- The Executive Board completed the Fifth Review of Grenada’s economic performance under a three-year Extended Credit Facility (ECF) arrangement.
- Completion of the Review enables the disbursement of the equivalent of SDR 2 million (about US$2.9 million), bringing total resources made available under the arrangement to the equivalent of SDR 12.04 million (about US$17.5 million).
- The ECF arrangement in the amount equivalent to SDR 14.04 million (then about 120 percent of Grenada’s quota at the IMF) was approved on June 26, 2014 (Press Release No. 14/310).
- The Board’s decision on the fifth review was taken on a lapse of time basis.
Program performance, debt, and structural reforms
- The government met all performance criteria for end-June 2016 and most structural benchmarks for the Fifth Review.
- The government made further progress restructuring public debt.
- Grenada’s debt-to-GDP ratio declined to 84.3 percent at end-June from 107 percent in 2013.
- Strengthened fiscal framework elements cited:
- Fiscal Responsibility Act
- Public Debt Management Act
- Public Finance Management Act
- Outlook: Prospects for debt sustainability and durable growth are improving.
Growth, activity, and near-term priorities
- Real GDP growth (at market prices) is projected to moderate to about 3.0 percent in 2016 and 2017, reflecting strong construction activity and steady external demand for Grenada’s tourism services.
- Near-term priority reform: management of the public sector wage bill.
- Other government focuses:
- Strengthening the financial system to ensure stability and support private sector investment and growth.
- Programs to improve the quality of labor supply and the business environment to lower unemployment and encourage broad based growth.
Selected economic and financial indicators (annual unless otherwise specified)
- National income and prices
- GDP at constant prices: 2012 -1.2; 2013 2.4; 2014 7.3; 2015 6.2; 2016 3.1; 2017 2.7; 2018 (Proj.) (no value)
- GDP deflator: 2012 3.9; 2013 2.9; 2014 0.8; 2015 1.6; 2016 1.5; 2017 3.2; 2018 2.3
- Consumer prices, end of period: 2012 1.8; 2013 -0.6; 2014 1.0; 2015 2.1; 2016 2.6; 2017 2.0
- Real effective exchange rate (annual average, depreciation): 2012 -1.0; 2013 -1.9; 2014 -0.3; 2015 0.3; 2016 … (ellipsis in source)
- Money and credit, end of period
- Credit to private sector: 2012 0.2; 2013 -5.7; 2014 -5.1; 2015 -3.8; 2016 3.3; 2017 3.5; 2018 5.1
- Broad money (M2): 2012 0.7; 2013 4.1; 2014 5.2; 2015 4.7; 2016 6.0
- Lending rate (in percent): 2012 9.2; 2013 9.1; 2014 9.0; 2015 8.7
- Deposit rate (in percent): 2012 2.5; 2013 2.2
- Central Government (in percent of GDP, unless otherwise specified)
- Revenue: 2012 20.8; 2013 20.9; 2014 24.5; 2015 24.8; 2016 25.1; 2017 24.6
- Expenditure: 2012 26.7; 2013 28.1; 2014 29.2; 2015 26.0; 2016 23.5; 2017 23.3; 2018 22.7
- o.w. capital expenditure: 2012 5.0; 2013 7.1; 2014 8.4; 2015 3.4; 2016 3.8
- Primary balance 1/: 2012 -2.5; 2013 -3.9; 2014 -1.1; 2015 4.8; 2016 4.0
- Overall balance: 2012 -5.9; 2013 -7.3; 2014 -4.7; 2015 1.3
- Public debt (incl. guaranteed) 2/: 2012 103.3; 2013 108.1; 2014 101.8; 2015 91.7; 2016 84.3; 2017 72.9; 2018 67.2
- Domestic: 2012 35.8; 2013 37.3; 2014 34.1; 2015 29.1; 2016 24.4; 2017 21.0; 2018 19.8
- External: 2012 67.6; 2013 70.8; 2014 67.7; 2015 62.6; 2016 59.9; 2017 51.9; 2018 47.4
- Savings-Investment balance: 2012 -21.1; 2013 -23.2; 2014 -16.5; 2015 -14.5; 2016 -15.2; 2017 -15.7
- Savings: 2012 -3.2; 2013 1.4; 2014 -3.1; 2015 -3.7; 2016 -3.6
- Investment: 2012 16.3; 2013 20.0; 2014 18.3; 2015 18.0; 2016 11.4; 2017 11.6; 2018 12.1
- External sector
- Gross international reserves (millions of dollars): 2012 104.0; 2013 135.4; 2014 158.3; 2015 188.5; 2016 191.4; 2017 194.1; 2018 203.3
- GIR (in months of imports): 2012 4.6; 2013 5.4 (no further years listed in source)
- Current account balance, o/w:
- Exports of goods and services: 2012 28.9; 2013 28.5; 2014 28.0; 2015 27.2; 2016 28.2; 2017 27.8; 2018 27.9
- Imports of goods and services: 2012 49.5; 2013 50.4; 2014 43.6; 2015 42.0; 2016 40.7; 2017 41.9; 2018 42.9
- External debt (gross): 2012 141.0; 2013 144.7; 2014 144.8; 2015 137.1; 2016 132.8; 2017 122.5; 2018 116.8
Notes included in source
- Sources: Ministry of Finance; Eastern Caribbean Central Bank; and IMF staff projections. World Bank WDI 2007; and Fund staff estimates and projections.
- 1/ Includes 0.7 percent of GDP CBI-related non-tax revenue in 2015.
- 2/ Includes the impact of the debt restructuring agreements that have already been reached.
Source: IMF Press Release No. 16/575, December 21, 2016.