Economic Impact Of Covid-19 Will Flip Grenada's Fiscal Balance Into Deficit In 2020

• The Covid-19 pandemic will transform Grenada’s fiscal position, as a collapse in revenues and countercyclical public spending push the budget balance into deficit in 2020 and the years thereafter.
• While it is expected that an economic rebound will support revenue growth beginning in 2021, the government will likely return to fiscal consolidation in the longer term to contain debt accumulation.
• Fitch Solutions forecasts the Grenadian fiscal deficit will be 2.4% of GDP in 2020 and 1.5% in 2021, from a 4.1% surplus in 2019.

(Source: Fitch Solutions)