ST. GEORGE’S, Grenada, CMC – The Grenada authorities says the island’s economic system is estimated to have expanded by 5.5 % this 12 months and is projecting additional sturdy financial development of three.6 subsequent 12 months.
Finance Minister Dennis Cornwall, presenting the EC$1.66 billion (One EC greenback=US$0.37 cents) funds to Parliament on Monday, mentioned that because of robust financial administration, Grenada had demonstrated spectacular resilience in 2023.
“The economic system is estimated to have expanded by 5.5 % this 12 months; 1.9 share factors greater than the three.6 % projected at roughly the identical time final 12 months, fuelled primarily by private and non-private sector building and continued robust restoration in tourism,” Cornwall instructed legislators.
He mentioned, nevertheless, inflation stays a problem although inflationary pressures have eased with the headline inflation – 12 months on 12 months in September- declining from 3.1 % final 12 months to 2.4 % in 2023, helped by the federal government’s insurance policies to maintain costs down, together with the elimination of the Worth Added Tax (VAT) on fundamental meals and different important gadgets. Furthermore, he mentioned, though nonetheless elevated, meals inflation fell from 7.3 % to six.8 % for a similar interval.
Cornwall mentioned that knowledge from the Central Statistical Workplace (CSO) signifies that the unemployment state of affairs has seen an enormous enchancment because the declaration of the coronavirus (COVID-19) pandemic in early 2020.
“The unemployment charge has fallen from a excessive of 28.4 % within the second quarter of 2020 to an estimated just below 12 % by the second quarter of this 12 months. Youth unemployment, though nonetheless elevated, has additionally declined over the identical interval,” Cornwall mentioned, including that the industries that employed probably the most vital variety of folks have been
Wholesale and retail commerce, building, agriculture, forestry and fishing, and schooling.
He mentioned the federal government’s fiscal place has considerably strengthened in 2023, and decreasing public debt vulnerabilities remained a precedence. Moreover, the monetary sector remained steady and sound, and exterior stability was nicely anchored.
Cornwall mentioned that the nation’s macroeconomic indicators are anticipated to stay sturdy and that “in 2024, we challenge additional robust financial development of three.6 % and inflation to proceed to ease in direction of the historic development of two %”.
Cornwall instructed legislators that the federal government’s insurance policies and packages have spurred development and the creation of sustainable jobs, empowered the much less lucky residents, and created the enabling surroundings for additional macroeconomic and social progress.
“These achievements, Mr. Speaker, as acknowledged by respected regional and worldwide monetary establishments, are testimony of the correctness of our macroeconomic insurance policies,” he instructed Parliament.
Debate on the funds begins on Thursday.
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