Sluggish Recovery In Services In 2021 Will Delay Grenada's Economic Rebound

• Fitch Solution has revised its Grenadian real GDP growth forecasts to 1.4% in 2021 and 6.6% in 2022, from 5.5% and 3.8% previously, reflecting the prolonged impact of the COVID-19 pandemic on the tourism and services sector. Real GDP contracted by an estimated 13.8% in Grenada in 2020 as global mobility restrictions severely depressed international tourism.
• It is anticipated that global tourism will be slow to recover in the coming quarters due to the rising threat of COVID-19 variants, which will dissuade potential travelers from visiting smaller economies such as Grenada.
• That being said, the reopening of St. George's University and continued government stimulus will underpin modest growth in H221 before a stronger rebound in 2022.
• The revised forecasts imply the Grenadian economy will not fully recover until 2024, broadly in line with other Caribbean markets that rely on tourism to drive growth.

(Source: Fitch Solution)