Grenada: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Grenada
IMF Staff Country Reports, February 4, 2025
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- Grenada: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Grenada
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Bibliographic details
- Published: February 4, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400299544.002
Macroeconomic conditions through end-June 2024
- Economy experiencing sustained strong growth supported by buoyant tourism, moderating inflation, and a narrowing current account deficit (through end-June 2024).
- Authorities responded with a package of fiscal measures, including suspension of fiscal rules to permit temporary deficit spending in support of the recovery and reconstruction.
Near-term and medium-term growth projections
- Near-term growth projection: 3.9 percent in 2025, buoyed by limited hurricane damages to tourism infrastructure and the authorities’ large recovery and reconstruction spending.
- Medium-term outlook: GDP growth projected to slow as the tourism sector operates near its peak-season capacity.
Fiscal stance and fiscal space
- Authorities enacted temporary suspension of fiscal rules to allow deficit spending for recovery and reconstruction.
- Sizable government savings and triggering of disaster-contingent instruments create fiscal space to support recovery and reconstruction needs.
Key risks and vulnerabilities
- Downside risks:
- Threat of further natural disasters.
- Potential shocks to tourism demand.
- Uncertain scale of future Citizenship-by-Investment inflows.
- Rising vulnerabilities in the domestic non-bank financial system from the continued rapid expansion of credit unions.
- Rising costs of property insurance.
- Upside risks:
- Prospective hotel developments.
- Public investment projects that could raise the medium-term growth outlook.
Source: Grenada: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Grenada.
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- 1grdea2025001-print-pdf