Grenada’s economy has continued its post Hurricane Beryl growth with the International Monetary Fund (IMF) concluding the country’s economy grew by an estimated 4.4 percent in 2025/

In a report released following the conclusion of the Article Four Consultation, the IMF’s Executive Board said that strong investment and a surge in construction activity have helped offset a dip in tourism post hurricane. 

While the government temporarily suspended its fiscal rules to fund post-disaster reconstruction, the island’s fiscal position remains stable.

The board noted that prudent savings from citizenship-by-investment revenues provided the necessary financial space to invest in development priorities without jeopardising debt sustainability.

“Grenada’s economy continues to navigate elevated global uncertainties effectively in the aftermath of Hurricane Beryl,” the report stated.

It added that inflation has continued to moderate as global food and fuel prices ease.

Looking ahead, the International Monetary Fund expects growth to gradually settle at a more modest rate of 2.7 percent by 2029. The government is projected to reach its public debt target of 60 percent of Gross Domestic Product by 2033, provided it returns to a primary balance floor of 1.5 percent by 2027.

However, the assessment warned that the outlook is not without risk. 

Grenada remains highly vulnerable to natural disasters and is heavily dependent on tourism and imports. 

The IMF warned that disruptions to citizenship-by-investment programmes or foreign direct investment could amplify these risks.

To safeguard the economy, the IMFurged the government to continue strengthening its oversight of state-owned enterprises and statutory bodies. It also highlighted the need to manage the fiscal risks associated with large public investment projects, such as Project Polaris, by ensuring strict project management to avoid cost overruns.

On the financial front, while the sector remains stable, the board called for careful monitoring of credit unions and insurance markets. 

The government was also encouraged to maintain its momentum in strengthening its Anti-Money Laundering and Countering the Financing of Terrorism framework.

Finally, the International Monetary Fund recommended that Grenada focus on strengthening the “domestic foundations of growth.” This includes improving the quality of economic data, coordinating efforts to support local business development, and enhancing human capital to ensure that tourism expansion benefits the wider population.