Editor’s note: Grenada defaulted, and worked out an agreement with their creditors in 2015. Now they’re growing again. This is what the US SHOULD be doing for Puerto Rico and the Virgin Islands. So why aren’t we?
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 said Wednesday.
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.
“Grenada has also taken important steps towards completing the comprehensive debt restructuring started in 2014. Of the stock outstanding at programme inception, over 90 per cent has been restructured.
“Public debt is forecast to fall to 72 per cent at end-2017, a drop of 36 percentage points from its peak of 108 per cent in 2013. This sizeable decline in the debt-to-GDP ratio is attributed to all three key factors: debt relief and restructuring, fiscal adjustment, and strong GDP growth.”
She said employment has grown on average by about four per cent annually since 2014, but unemployment in Grenada is high, particularly for the youth.