ST. GEORGE’S, Grenada, The Spice Island Grenada’s performance during the last phase of the International Monetary Fund (IMF) Extended Credit Facility (ECF) supported home grown programme has been strong with the island recording economic growth of just under four per cent last year, the IMF has said.
An IMF delegation, headed by Nicole Laframboise has ended a one week visit here undertaking a sixth review of Grenada’s IMF-supported ECF programme of US$19.4 million that was approved in 2014.
Laframboise said overall performance during this last phase of the ECF-supported Home Grown programme has been strong and that the government has made progress toward achieving the key programme goals of restoring fiscal sustainability, strengthening the financial sector, and setting the stage for durable growth.
She said that the government has met all of the performance criteria and structural benchmarks due at end-December 2016.
The IMF official said that real gross domestic product (GDP) is estimated to have expanded by 3.9 per cent in 2016, implying annual real GDP growth of 5.8 per cent on average from 2014-2016.
She said activity in 2016 was driven by tourism, construction, and some pick up in domestic demand, while agriculture experienced weather-related contraction.
She said the government achieved a primary surplus – fiscal balance excluding interest payments – in 2016 of 5.3 per cent of GDP and that expenditures were kept under firm control, and tax revenues performed well across all categories, driven by improvements in compliance and administration as well as robust activity. Laframboise said while improvements in economic indicators are noteworthy, there is still much to do to improve job prospects.