ST. GEORGE’S, Grenada – Grenada's government says the island’s economy is estimated to have expanded by 5.5 percent this year and is projecting further strong economic growth of 3.6 next year.
Finance Minister Dennis Cornwall, presenting the EC$1.66 billion (One EC dollar=US$0.37 cents) budget to Parliament on Monday, said that due to strong economic management, Grenada has demonstrated impressive resilience in 2023.
“The economy is estimated to have expanded by 5.5 percent this year; 1.9 percentage points more than the 3.6 percent projected at roughly the same time last year, fuelled mainly by public and private sector construction and continued strong recovery in tourism,” Cornwall told legislators.
He said however, inflation remains a challenge even though inflationary pressures have eased with the headline inflation – year on year in September- , declining from 3.1 percent in last year to 2.4 percent in 2023, helped by the government’s policies to keep prices down, including the removal of the Value Added Tax (VAT) on basic food and other essential items. Moreover, he said, food inflation for the same period, albeit still elevated, fell from 7.3 percent to 6.8 percent.
Cornwall said that data from the Central Statistical Office (CSO) indicates that the unemployment situation has seen a massive improvement since the declaration of the coronavirus (COVID-19) pandemic in early 2020.
“The unemployment rate has fallen from a high of 28.4 percent in the second quarter of 2020 to an estimated just under 12 percent by the second quarter of this year. Youth unemployment, although still elevated, has also declined over the same period,” Cornwall said, adding that the industries that employed the largest number of people were
wholesale and retail trade, construction, agriculture, forestry and fishing, and education.
He said the government’s fiscal position has significantly strengthened in 2023, and reducing public debt vulnerabilities, remained a priority. Furthermore, the financial sector remained stable and sound, and external stability was well anchored.
Cornwall said looking ahead, the country’s macroeconomic indicators are expected to remain robust and that “in 2024, we project further strong economic growth of 3.6 percent and inflation to continue to ease towards the historical trend of two percent”.
Cornwall told legislators that the government’s policies and programmes have spurred growth and the creation of sustainable jobs, empowered the less fortunate citizens, and created the enabling environment for further macroeconomic and social progress.
“These achievements, Mr. Speaker, as recognised by reputable regional and international financial institutions, are testimony of the correctness of our macroeconomic policies,” he told Parliament.
Debate on the budget begins on Thursday.
