Grenada reports strong economic growth despite Hurricane Beryl’s impact
Grenada’s economy demonstrated robust performance in 2024, despite the devastating effects of Hurricane Beryl, and is forecast to continue growing in the coming years, according to the government.
Finance Minister Dennis Cornwall, in presenting the EC$1.91 billion national budget, projected that real GDP growth will reach 4.1% in 2025, driven by tourism demand and post-hurricane reconstruction efforts, following 3.7% growth in 2024.
Cornwall noted that consumer prices declined in 2024, aided by government measures such as:
- Removing VAT on basic food and essential items
- Electricity and petroleum price subsidies
However, food inflation remains high, though overall inflation is expected to remain stable at 0.9% in the medium term.
The labor market also showed resilience, with the unemployment rate holding steady at 12% over the past two to three years. With continued economic expansion, the rate is expected to decline further in 2025.
Grenada CBI program sees record revenue
Grenada’s Citizenship-by-Investment (CBI) program—which grants citizenship to foreign investors in exchange for economic contributions—generated record-breaking revenues in 2024, strengthening the country’s fiscal position.
Additionally, a Caribbean Catastrophe Risk Insurance Facility (CCRIF) payout provided financial relief after Hurricane Beryl. Despite extraordinary hurricane-related spending, the government achieved a primary surplus of EC$432.9 million (11.3% of GDP).
To support economic recovery, Cornwall announced that the Fiscal Resilience Act (FRA) rules will be suspended in 2025, allowing for greater spending on rehabilitation and reconstruction projects.
As part of its healthcare transformation agenda, the government plans to build a new hospital, offering expanded specialist services and improved diagnostic capabilities.
To finance the project, an account will be opened at the Eastern Caribbean Central Bank (ECCB), with:
- EC$23.6 million allocated in the 2025 budget
- US$25 million deposited as part of "Project Polaris"
- A portion of National Transformation Fund (NTF) revenues set aside monthly starting June 2025
The NTF, part of the CBI program, allows foreign investors to pay over US$200,000 for citizenship, generating EC$500 million in 2024 alone.
The government will also seek additional funding through the Budget Loan Authorization Bill, giving the finance minister the authority to borrow funds from various sources.
While Grenada’s economic outlook remains positive, Cornwall warned that global uncertainties—including geopolitical tensions and U.S. protectionist policies—could pose risks to future growth.
