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

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  • 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.

Suggested Citation

  • International Monetary Fund, 2026. "Grenada: 2025 Article IV Consultation-Press Release; and Staff Report," IMF Staff Country Reports 2026/009, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2026/009
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