The IMF has released Grenada’s 2025 Article IV Consultation documents, which include: - The IMF confirms that Grenada’s debt remains sustainable. The Government remains committed to responsible economic management, productive engagement with international partners, and building a resilient and sustainable economy for the people of Grenada. The Government expresses its appreciation to the IMF team for its continued collaboration.
Publication of 2025 Article IV Consultation Staff Report on Grenada
REPORTS
IMF Executive Board Concludes 2025 Article IV Consultation with Grenada
IMF Executive Board Concludes 2024 Article IV Consultation with Grenada
IMF Executive Board Concludes 2023 Article IV Consultation with Grenada
IMF Executive Board Concludes 2022 Article IV Consultation with Grenada
IMF Executive Board Concludes 2019 Article IV Consultation with Grenada
IMF Executive Board Concludes 2018 Article IV Consultation with Grenada
FAQ
Key Points from the Government of Grenada
Economic Outlook
Limited exposure to global trade uncertainty due to regional exemptions
Debt Sustainability
- Grenada is classified in the “debt distress” category. The “debt distress” classification is driven solely by outstanding arrears, not by broader debt management concerns. Fiscal Commitments & Reforms
Government Statement
Grenada’s economy continues to navigate elevated global uncertainties well in the aftermath of damages caused by the 2024 Hurricane Beryl. The resilience of the tourism sector, ongoing reconstruction and, increasingly, other development priority investments helped sustain robust GDP growth. Despite significant public expenditure outlays and the extended primary balance rule suspension, the Government’s fiscal position remains comfortable on the back of substantial savings from the now-normalized Citizenship-by-Investment (CBI) revenues and post-disaster contingent financing receipts. Inflation remains moderate while large FDI inflows continue to finance high current account deficits. The financial system remains stable with only a modest post-disaster impact.
Grenada’s economy has proven resilient in the aftermath of Hurricane Beryl, despite elevated global uncertainties. Growth in 2025 is estimated to have accelerated to 4.4 percent, driven by strong investment and construction activity. Inflation has continued to moderate, reflecting easing global food and fuel prices.
Through end-June 2024, Grenada’s economy was experiencing sustained strong growth supported by buoyant tourism, moderating inflation, and a narrowing current account deficit. A surge in Citizenship-by-Investment (CBI) revenue supported a strong improvement in the fiscal position and reduction in public debt.
Grenada’ tourism-dependent economy continued to recover from the pandemic amidst rising energy and food prices. Growth is estimated to have reached 6.4 percent in 2022, driven by a tourism rebound and construction activity. Inflation rose moderately to 2.9 percent by end-2022, as the authorities’ policy response dampened the pass through from rising global food and fuel prices.
Grenada’s tourism-dependent economy was hit hard by the pandemic, with a decline in real output of 14 percent in 2020. Growth in 2021 is estimated to have partly recovered to 5.6 percent, driven by construction and agriculture.
The Grenadian economy continues to grow robustly. GDP expanded by 4¼ percent in 2018, driven by strong activity in construction and tourism. Unemployment has been falling, but it remains high at 21.7 percent as of mid-2018. Inflation has remained low and bank credit growth is positive.
The Grenadian economy grew by an estimated 4½ percent in 2017, driven by strong activity in construction, tourism, and education sectors. Weather-related weakness in agriculture has, however, been a headwind.
Frequently asked questions and answers
- The Government reports strong alignment between national policy goals and the IMF’s conclusions.
- The Government expresses greater near‑term optimism than the IMF, citing:
Arrears owed to Trinidad & Tobago are well advanced toward resolution.
The Government reaffirms its commitment to:
- Achieving the 60% debt‑to‑GDP target by 2035, inclusive of borrowing for Project Polaris, the national health‑sector investment
- Returning to the primary balance rule in 2027
- Implementing revenue‑enhancing measures to strengthen long‑term fiscal sustainability