St. Vincent and the Grenadines: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for St. Vincent and the Grenadines

International Monetary Fund

No 2022/346, IMF Staff Country Reports from International Monetary Fund

Abstract: St. Vincent and the Grenadines is recovering from the pandemic and 2021 volcanic eruptions. Despite the authorities’ strong efforts to contain deficits, critical fiscal responses to these shocks pushed up public debt, which—while assessed as sustainable—remains at high risk of distress should future shocks materialize. The economy is projected to grow by 5 percent in 2022, supported by large-scale investment projects and recoveries in tourism and agriculture. Surging commodity prices, fueled by Russia’s war in Ukraine, are expected to raise inflation sharply to 5.8 percent in 2022, adding to fiscal and external pressures and weighing on the recovery. So far, the financial system has weathered the shocks relatively well. The outlook is subject to significant downside risks primarily from an abrupt slowdown in trading partners’ growth, potential delays in investment projects including due to supply chain disruptions, and the ever-present threat of frequent natural disasters.

Keywords: St. Vincent and the Grenadines economy; Vincentian authorities; authorities of St. Vincent and the Grenadines; resilience building; CPI basket; reconstruction activity; Natural disasters; Fiscal stance; Caribbean; Global (search for similar items in EconPapers)
Pages: 105
Date: 2022-11-17
New Economics Papers: this item is included in nep-cis
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