The Government of Grenada acknowledges the conclusion of the International Monetary Fund (IMF) Executive Board’s 2024 Article IV Consultation, which highlights Grenada’s sustained economic growth and resilience amidst recent challenges.
On January 24, the IMF, the Washington-based global financial institution, released its latest assessment of Grenada’s recent economic performance following consideration by its Executive Board on 24 January 2025. The Executive Board’s assessment and the full staff report can be accessed via this link: https://www.imf.org/external/np/sec/misc/qualifiers.htm. The previous assessment was concluded in July of 2023. The conclusion of the 2024 review was delayed to incorporate the impact of Hurricane Beryl, which struck Grenada on July 1, 2024.
The IMF’s report recognizes Grenada’s robust economic performance through June 2024, driven by strong tourism growth, moderating inflation, and a narrowing current account deficit on the Balance of Payments. Significant revenue from the Citizenship-by-Investment (CBI) programme enabled improvements in public finances and a reduction in public debt, further underscoring the country’s economic stability. Despite the devastating impact of Hurricane Beryl, which caused damages equivalent to 16% of GDP, Grenada’s swift and strategic fiscal response has been critical in supporting recovery and reconstruction efforts. The IMF notes that Grenada’s near-term economic outlook remains positive, with projected growth of 3.9% in 2025, supported by effective disaster-contingent financial instruments, recovery efforts, and prudent fiscal policies.
The government reaffirms its commitment to adhering to fiscal rules once recovery spending subsides, ensuring public debt remains on track to meet the 60% GDP target by 2035. While risks such as climate vulnerability and tourism demand fluctuations remain, the government continues to explore opportunities for sustainable growth, including public investments in strategic areas, namely in health, skills development, housing, and renewable energy transition. The government appreciates the IMF’s constructive engagement and remains steadfast in its efforts to build a resilient and inclusive economy for the benefit of all Grenadians.
The Minister for Finance, Hon. Dennis Cornwall, in reacting to the report, stated that the solid economic performance and outlook for the Grenadian economy is a testament to the sound policies implemented by the government since coming into office in mid-2022. It is expected that the next Article IV Consultation with Grenada will be held on the standard 12-month consultation cycle.
Office of the Prime Minister
