Grenada’s recovery from the pandemic is being led by construction & agriculture, resulting in an expected expansion of real output of approximately 5% in 2022.
According to the IMF, the current account deficit has widened, as weak tourism receipts, higher fuel prices and import demand from construction offset the recovery in agricultural exports. Public debt is estimated to have declined to 68.9% of GDP in 2021 (from 71.7% in 2020) and expected to continue declining supported by the economic recovery.
The Fund notes that in 2020–21, the escape clause was appropriately triggered under the Fiscal Responsibility Law and 2 stimulus packages were launched (2.4% and 1.2% of GDP, respectively) that provided targeted support including wage subsidies, income support, social transfers, and additional health spending. The impact on the financial sector has so far been limited, partly reflecting loan moratoria which still represented a significant share of total loans for some banks. (IMF)
Extract from CARICOM BUSINESS Vol 5 No 3
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