Grenada’s Economy To Improve In 2024 Alongside Tourism Sector
- Fitch Solutions estimates real GDP growth slowing from 5.9% in 2022 to 2.0% in 2023 in Grenada, owing partially to a high statistical base.
- In 2023, despite the impact of base effects, Fitch expects that economic activity was supported by a strong recovery in the tourism sector, as well as easing global commodity prices following a spike in prices caused by Russia’s invasion of Ukraine in February 2022.
- It is also forecasted that real GDP growth will accelerate to 3.0% in 2024, driven mainly by the recovering tourism sector and improving financial conditions for households.
- Furthermore, Grenada will remain among the most politically stable countries in the Caribbean region in the coming years, as reflected by its high score of 80.6 (out of 100) in its Short-Term Political Risk Index.
- The country will continue benefiting from a stable path of political policymaking and policy continuity, while social stability will benefit from the improving economy and tourism sectors.
- Nevertheless, the country’s weak fiscal position and limited ability to attract overseas investment outside the tourism sector will prevent faster rates of GDP growth.
(Source: Fitch Solutions)