Grenada: 2025 Article IV Consultation-Press Release; and Staff Report

International Monetary Fund

No 2026/009, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2025 Article IV Consultation discusses that 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. The effectiveness of Grenada’s post-disaster financing framework and prudent savings of recent citizenship-by-investment (CBI) revenues have provided space for continued investment in key development priorities. The financial sector remains stable, with a modest post-hurricane impact. The perimeter of the primary balance rule could be better aligned with the general government debt anchor. Capturing government off-budget and public on-lending-financed investments would help ensure the rule effectively restrains debt-creating spending. Improving quality of economic data and institutional capacity is critical to support informed policymaking. Data deficiencies contribute to uncertainty in policy analysis and economic forecasts.

Keywords: investment project; reform priority; Imf executive board; financial system; producer price index; economic activity; Cartac TA; downside risk; Fiscal stance; Global; Caribbean; South America; Central America; Africa (search for similar items in EconPapers)
Pages: 93
Date: 2026-01-21
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