Publication of 2025 Article IV Consultation Staff Report on Grenada
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.
Frequently asked questions and answers
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What is being published?
The IMF has released Grenada’s 2025 Article IV Consultation documents, which include:
- The Staff Report
- The Informational Annex
- The Debt Sustainability Analysis (DSA)
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What is an Article IV Consultation?
Article IV Consultations are part of the IMF’s regular economic surveillance. Through this process, the IMF assesses a country’s:
- Macroeconomic performance
- Fiscal policies
- Economic risks and outlook
The assessment is informed by engagement with government officials, private‑sector actors, and civil society stakeholders.
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Why is this publication significant?
Publishing the Article IV report:
- Enhances transparency and strengthens public understanding of Grenada’s economic situation
- Provides an independent assessment of policies and economic trends
- Supports ongoing policy dialogue with development partners and the public
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Does the Government review these documents before publication?
Yes. Under the IMF’s Transparency Policy, member governments may review Article IV documents to identify:
- Factual or typographical errors
- Misrepresentation of Government positions
- Ambiguities that could lead to public misunderstanding
Key Points from the Government of Grenada
Economic Outlook
- 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:
- Continued growth in construction
- Strong performance in tourism
Limited exposure to global trade uncertainty due to
regional exemptions
Debt Sustainability
- The IMF confirms that Grenada’s debt remains sustainable.
- Grenada is classified in the “debt distress” category. The “debt distress” classification is driven solely by outstanding arrears, not by broader debt management concerns.
Arrears owed to Trinidad & Tobago are well advanced toward resolution.
Fiscal Commitments & Reforms
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
- Improving economic data quality through:
- Updated CPI weights
- Resumed labour‑force surveys
- Strengthened public‑sector staffing and technical capacity
Government Statement
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.
