Grenada Economy Hailed by International Monetary Fund in 2024

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The International Monetary Fund (IMF) has released its Grenada Staff Concluding Statement of the 2024 Article IV Mission. Article IV relates to IMF members’ obligations regarding exchange agreements and dictates an annual staff visit to assess economic performance. The most recent one to this Eastern Caribbean island saw the Grenada economy commended.

The Washington, DC Line on the Grenada Economy

Washington, DC houses the IMF’s HQ. It’s from here that the Concluding Statement was sent. This acknowledges that “Grenada’s economy is experiencing sustained, strong growth supported by buoyant tourism.”

One of the biggest contributors to economic growth on the island, apart from the tourists, is the Grenada Citizenship by Investment Programme. The statement continues: “A surge in citizenship-by-investment (CBI) revenue has resulted in a large budget surplus, an increase in government deposits, and lower public debt.”

The IMF does interject with words of warning when discussing Grenada’s “key fiscal policy priorities”. These begin with the need for the island to “improve the management of these potentially volatile CBI revenues”.

There is also a realization that cutting “Grenada’s dependency on imported fossil fuels, boosting competitiveness, and investing in climate resilience are essential to increase long-term growth.”

The Tourism Effect in Grenada and CBI Concerns

The IMF cites a 4.4% improvement in the Grenada economy in 2023. This is due to more sleepovers on the island resulting in greater visitor expenditure. Yet the IMF has reservations of this rise continuing with the island’s small size capping capacity.

Growth is tipped to deteriorate to 3.9% in 2024. Beyond that, the IMF predicts a dip to 2.7%. The completion of CBI-financed hotels and those non-funded by the investment migration industry could lead to a more positive outlook.

The IMF statement flags “the recent heightened international scrutiny over CBI” as it “represents a risk to this important source of income.” These “potential swings in CBI revenue” sound an alarm bell. Yet the IMF highlights the fact that “Grenada stands out in publishing granular CBI data.”

The RIF Trust Reaction to the IMF Verdict

Chris Willis is our Caribbean Managing Partner. “I don’t mean to underestimate the significance of the IMF but they’re not the only regulatory body concerned with this part of the Caribbean,” announces Willis.

“There’s also the Organisation of Eastern Caribbean States and the recent OECS media release will have a bigger say on the future of Caribbean Citizenship than Investment than this International Monetary Fund statement.”

“Yet it’s very reassuring for investors to discover how highly the IMF rates the Grenada economy.”

Accelerating Your Way to Grenada Citizenship by Investment

Good news about the Grenada economy might see you want to fast-forward your route to investing in its citizenship. Yet the real rush in securing Grenada CBI is about obtaining it for $150,000 before it increases to a minimum $200,000 on July 1, 2024. So, don’t delay and contact us today.