St. Vincent and the Grenadines: 2024 Article IV Consultation-Press Release and Staff Report

International Monetary Fund

No 2024/239, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2024 Article IV Consultation with St. Vincent and the Grenadines discusses that the economy rebounded strongly in 2022–23 from the pandemic and 2021 volcanic eruptions, returning to pre-pandemic output levels. Growth is projected at 4.9 percent in 2024, supported by continued growth in tourism and strong investment on infrastructure, particularly the port project. Inflation is projected to ease to 2.5 percent by end-2024, on account of lower imported inflation. Fiscal policy should focus on building buffers and supporting resilience and inclusive growth while safeguarding public debt sustainability. Sustained efforts with structural reforms are imperative to build climate resilience and address structural bottlenecks to investment, employment, and productivity. The ongoing investments in key infrastructure such as ports, roads, airports, and water supply, along with efforts with digitalization and improving investment climate, are crucial for alleviating supply-side bottlenecks and enhancing competitiveness. The financial system remains sound, but efforts should continue to reduce balance sheet vulnerabilities and strengthen regulatory and supervisory frameworks. Capital and liquidity buffers are ample, with no apparent impacts of the compounded shocks on asset quality.

Keywords: financing needs; staff appraisal; hurricane reconstruction effort; customs control; World Bank team; IMF's article; safeguards policy; Natural disasters; Caribbean; Global (search for similar items in EconPapers)
Pages: 100
Date: 2024-07-22
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