Grenada.

Fiscal anchor

Fiscal Resilience Act (No. 11 of 2023): public sector debt to 60% of GDP by 2035 (aligned with the ECCU benchmark), a central government primary balance floor of 1.5% of GDP, and a wage bill ceiling of 13% of GDP. The debt target and primary balance rule have been SUSPENDED since 2024 under the Beryl escape clause and remain suspended through 2026; return to the 1.5% floor is anticipated from 2027.

IMF programme status

No active programme; surveillance only

Notes

Strong CBI revenues delivered large primary surpluses in 2023 and 2024, 9.4% and 10.0% of GDP, and brought public debt including state enterprises and statutory bodies down to 74.5% in 2023 and 72.7% in 2024. Hurricane Beryl (July 2024) damaged Carriacou, Petite Martinique and northern parishes by more than 16% of GDP, prompting a temporary suspension of the fiscal rules; the primary balance swung to a deficit of 3.2% of GDP in 2025 and is projected at 3.5% in 2026, which is the figure this row carries. Growth accelerated to 4.4% in 2025 from 3.3% in 2024, is projected at 3.2% in 2026, and moderates toward a 2.7% potential rate by 2029. Public debt falls to 65.8% in 2026 but then edges back up through 2030 on the staff baseline. The 60% target is projected to be reached by 2033 only on the condition that the 1.5%-of-GDP central government primary balance floor is restored from 2027; it is not a projection of the current unsuspended path.