Grenada: Economic Outline

Economic Indicators

Grenada outperformed its Eastern Caribbean counterparts with an average annual GDP growth rate of 3.9% between 2015 and 2019, while maintaining relatively low public debt. This performance was supported by structural reforms initiated under the Fiscal Responsibility Act of 2015, later replaced by the Fiscal Resilience Act (FRA) in 2023. The economy remains heavily reliant on tourism, making it susceptible to external shocks and natural disasters. In July 2024, Hurricane Beryl—a Category 4 storm—struck the island, causing damage estimated at 16.5% of 2023 GDP. Despite this, Grenada’s economy grew by 3.7% in 2024, buoyed by tourism and construction activity. Although approximately 10% of the country's total tourism accommodation capacity was affected, the core tourism infrastructure on the main island remained functional. According to the World Bank, growth is forecast at 3.8% in 2025 and is expected to average 3.1% over 2026–2027, supported by sustained tourism performance and post-hurricane reconstruction efforts.

Regarding public finances, in 2024, the fiscal surplus reached 4.7% of GDP, driven by revenues rising to 44.1% of GDP due to increased Citizenship by Investment (CBI) inflows and resilient economic activity. Public sector debt declined from 75.2% of GDP in 2023 to 73.3% in 2024. Public expenditures are projected to increase to 39.1% of GDP in 2025, reflecting post-hurricane reconstruction efforts and higher wages, but are expected to decrease thereafter as capital spending is scaled back. Exceptional non-tax revenues, including strong past CBI performance and the CCRIF insurance payout, are anticipated to normalise over the projection period. As a result, total revenue is forecast to average 30% of GDP between 2025 and 2027, with the primary deficit averaging 1.6% of GDP. Public debt, estimated at 71.4% of GDP in 2025, is expected to continue its downward trend (World Bank data). Inflation eased from 2.7% in 2023 to 1.1% in 2024, primarily due to lower import prices that helped offset upward pressure from significant minimum wage increases early in 2024. It is forecast to rise slightly to 1.5% in 2025, before stabilising around 2.0% in subsequent years.

According to official government figures, labour conditions have remained stable, with the unemployment rate holding steady at around 12% over the past two to three years. With continued robust economic growth expected in 2025, the unemployment rate is forecast to decline further. Poverty, measured at USD 6.85 a day (2017 PPP), is estimated to have fallen to 13.1% in 2024, dropping below pre-pandemic levels as early as 2023. However, gender disparities in economic opportunities persist, and youth unemployment remains significantly higher than the national average. According to the IMF, Grenada’s GDP per capita (PPP) was estimated at USD 20,429 in 2024.

Monetary Indicators	2020	2021	2022	2023	2024
East Caribbean Dollar (XCD) - Average Annual Exchange Rate For 1 GBP	3.46	3.71	3.33	3.36	3.45

Source: World Bank - Latest available data.

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Latest Update: October 2025