IMF: Grenada Economic Recovery “Slowly Taking Hold”

Above: Grenada (CJ Photo)

By the Caribbean Journal staff

Grenada has made a strong start in implementing its new IMF programme, the fund said following the completion of its first review of its programme with the country.

The programme was approved in June for a total amount of $21.7 million.

“The economic recovery is slowly taking hold and the growth outlook remains broadly in line with the program, while inflation has been lower than expected,” said Aliona Cebotari, the fund’s mission chief for Grenada. “However, the economy continues to face significant challenges from high unemployment, a large debt overhang, and balance sheets weakened by impaired loans.”

Cebotari said continued strong programme implementation would be “critical to overcoming the challenges faced by the Grenadian economy.”

“Looking ahead, the authorities’ program will continue to focus on restoring fiscal sustainability, strengthening competitiveness and growth prospects, and securing financial stability,” she said. “In addition to the programmed fiscal adjustment, progress on the comprehensive debt restructuring underway will be needed to secure fiscal sustainability.”

Cebotari said the structural reform agenda would focus on five areas: improving the business environment; continued strengthening of the fiscal policy framework; modernizing the public service and strengthening the financial position and oversight of statutory bodies.

Completion of the first review of Grenada’s IMF-supported programme could take place by the IMF’s Executive Board in November.

When finalized, it could mean the disbursement of around $3 million USD to Grenada.