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Economic activity in St. Vincent and the Grenadines (SVG) “appears to have recovered in 2015”, the International Monetary Fund (IMF) said last week after its Article IV Consultation.

The IMF said in a press release that this recovery was led by “strong tourism inflows and a rebound in construction” while inflation has trended down due to falling food and fuel prices.

The country’s recovery from the global financial crisis was hampered by a series of natural disasters, sluggish global demand and slow implementation of key infrastructure projects, the IMF said.

Lower oil prices have also narrowed the current account deficit, the IMF said, adding that the commercial banking sector appears to remain solid, enabling a modest uptick in credit to the private sector that has been supportive of economic recovery.

The international airport at Argyle, the nation’s first, is “now foreseen for completion in 2016”, according to the IMF, and this is expected to sustain the near-and medium-term economic growth.

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The EC$729 million airport has missed completion deadlines annually since 2011, including June 2016.

“Real GDP is projected to expand by 2.2 percent in 2016 and reach 3.1 percent over the medium-term as tourist arrivals are boosted by greater airlift capacity and construction expands tourism infrastructure. The current account deficit is expected to narrow gradually, as tourism inflows increase. Additional imports to supply tourism services are expected to be financed by foreign direct investment.”

The IMF noted that the public debt has steadily increased since 2008, reading 74 per cent of GDP at end-2015.

This is due largely to the impact of the global financial crisis, construction of Argyle International Airport and rehabilitation spending in response to three back-to-back natural disasters.

“The authorities have committed to reducing public debt to the Eastern Caribbean Currency Union target of 60 per cent of GDP by 2030. They have made some progress towards consolidating the fiscal position since 2013, with a reduction of the primary deficit from 5 percent of GDP to an estimated 1.1 percent of GDP in 2015. Despite the new tax policy measures provided in the 2016 budget and the envisaged improvement in the primary balance, higher interest costs are expected to leave the fiscal position unchanged from 2015,” the IMF said.

6 replies on “Economic activity in St. Vincent ‘appears to have recovered in 2015’ — IMF”

  1. Its such a shame that the IMF are still working with figures supplied to them in the traditional style of Maurice Bishop.

  2. C. ben-David says:

    Once again shows how much hinges on the success of a shot-in-the-dark international airport whose feasibility no informed body, including the IMF, has ever studied.

    1. Luther Bonadie says:

      C, ben,

      What you saying, that you and that LAZY Eustace if the only men or women who have done the study on the airport.

      C.ben garbage in, and garbage out.

  3. Lmao!!! Everyone is in on the gullabity of poor Vincentians people, everyone has deemed you guys fool even the IMF… Fool them yes, cause everyday in Vincy is April 1st.., unemployment off the chain Country Po.. Can’t even afford the OR but things nice in SVG… People running to come Vincy due to such great economic opportunity

    1. Luther Bonadie says:

      Jan , Ass, Y,

      I told that coward Peter, that empty barrels make the most noise.

      Not only that you are a large empty barrel, but you are one of the chosen ones, the king, and Queen of the IMF, and all the Vincentians.

      You wrote that ” everyone has deemed you guys fools ”

      Now, who the hell you calling you guys, and who are you calling fools.

      First you must think of what kind of fool are you, or who has fooled your mind into this display of the ” donkey cart mentality”.

      You fool,

      JAN, ASS, Y

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