The International Monetary Fund (IMF) is predicting economic growth of 6.25 per cent for Grenada in 2021.
Prime Minister Dr. Keith Mitchell has issued the following statement in response to the news:
Fellow Grenadians, I welcome this projection because I think it is reflective of the level of confidence in Grenada’s economy and the country’s future, based both on Government’s management of the economy and the level of economic activity that is expected, primarily in the construction sector with several major public and private sector investments underway, as we re-open that sector for activities.
The projection is contained in the latest IMF Country Report on Grenada and it notes that Grenada’s economy “enjoyed a favourable multi-year macroeconomic performance prior to the COVID-19 outbreak”, with growth averaging “almost five per cent in 2014-19, well above the 20-year historical average of 2¾ per cent”.
The report identified tourism, construction and agriculture as the sectors that supported this growth and it acknowledged that prior to the pandemic, “Grenada’s key macro-economic indicators were expected to remain broadly at 2019 levels.”
While revised projections suggest a sharp decline in growth given the considerable impact on tourism, the IMF said, “the projections assume a modest recovery beginning in Q4 2020 leading to a perceptible rebound in 2021, when the economy is projected to grow by about 6¼ per cent”.
The IMF report also noted that “given the strong prior fiscal position, the Government financing situation looks manageable if the fiscal liquidity is well-protected and extreme shock scenarios do not materialise”.
