St. Vincent and the Grenadines: 2024 Article IV Consultation-Press Release and Staff Report
IMF Staff Country Reports, July 22, 2024
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Bibliographic details
- Published: July 22, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400283734.002
Economic performance and outlook
- The economy rebounded strongly in 2022–23 from the pandemic and 2021 volcanic eruptions, returning to pre-pandemic output levels.
- Growth is projected at 4.9 percent in 2024, supported by continued growth in tourism and strong investment on infrastructure, particularly the port project.
- Inflation is projected to ease to 2.5 percent by end-2024, on account of lower imported inflation.
Fiscal policy and public debt
- Fiscal policy should focus on building buffers and supporting resilience and inclusive growth while safeguarding public debt sustainability.
- Emphasis on balancing short-term support with measures to preserve medium-term debt sustainability.
Structural reforms and resilience
- Sustained efforts with structural reforms are imperative to build climate resilience and address structural bottlenecks to investment, employment, and productivity.
- Ongoing investments in key infrastructure—ports, roads, airports, and water supply—along with efforts in digitalization and improving the investment climate, are crucial for alleviating supply-side bottlenecks and enhancing competitiveness.
Financial sector assessment
- The financial system remains sound.
- Capital and liquidity buffers are ample, with no apparent impacts of the compounded shocks on asset quality.
- Continued efforts are recommended to reduce balance sheet vulnerabilities and strengthen regulatory and supervisory frameworks.
St. Vincent and the Grenadines: 2024 Article IV Consultation-Press Release and Staff Report
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- 1vctea2024001