The International Monetary Fund has congratulated the Unity Labour Party administration “for successfully reinvigorating the St. Vincent and the Grenadines’ economy”.

However, after its Article IV consultation this month, the IMF noted “the continuing challenges in terms of making economic growth more sustainable, reducing public debt, and increasing resilience to natural disasters”.

The Washington-based international financial institution stressed the importance of advancing structural reforms to raise longer-term growth.

IMF directors urged the authorities to capitalise on the growth opportunities created by the Argyle International Airport, which began operating two years ago.

They recommended vigorously implementing policies to foster private sector activity, by improving the investment climate and strengthening human and physical capital, including investing in climate‑resilient infrastructure.

IMF Directors emphasised the importance of bolstering fiscal buffers and welcomed the government’s commitment to meeting the 60 per cent of GDP debt target by 2030 and underscored the need for fiscal consolidation that does not jeopardize economic growth.

They recommended prioritizing capital projects taking into account capacity and budget constraints and seeking concessional financing.  Directors also encouraged taking additional fiscal measures, including broadening the tax base and reforming the pension system.

The IMF highlighted the need to further strengthen financial sector oversight and urged the authorities to enact pending legislation to strengthen the Financial Services Authority’s enforcement power.

The government was also urged to move ahead with preparing a crisis management plan for the non‑bank financial sector and setting up a Financial Crisis Management Committee, building on earlier technical assistance provided by CARTAC.

Directors commended progress in addressing remaining legal deficiencies in the anti-money laundering and countering financing of terrorism (AML/CFT) framework.

Going forward, they recommended focusing on ensuring the effectiveness of AML/CFT preventative measures and completing the National Risk Assessment.

10 replies on “IMF commends gov’t ‘for successfully reinvigorating’ economy”

  1. These IMF studies are very superficial and very repetitive. Same recommmendations year after year. It is also clear that the IMF staff do little or nothing to follow up on earlier reports going back several years which sometimes made contrary recommendations.

    Overall, the IMF is a generally despised UN agency that has little impact on the countries assessed until the proverbial sh*t his the fan when they place a country under heavy financial control often based on the failure of their earlier recommendations to have the desired results.

  2. The IMF is an imperialist organization that is controlled by Uncle Sam and it’s accolades . Do really audit their own recommendation. Down with imperialiam.

  3. Why do the IMF continue to write such foolishness? The reality is so much different here for those in SVG who have never worked and with no hope of ever finding work.

  4. Annis Oatelia Creese says:

    C-Ben-David, Socialist and James H, can you please respectfully list here the organizations or groups that you have established to help the youths of SVG, or any depressed community in SVG, please? I am enquiring because I do not live in SVG so I won’t know unless I read an article where it is mentioned. And if you have not established any yet, can you name some for me that have been established by other private citizens? Thank you respectfully.

  5. Charity Annis, though important, is not the only way to help our young people in SVG. Small and medium size Business remain the best way so to do. Enterprises are the best known form of Jobs and wealth creation for the nation and our youth, and they can motivate the young into having a feeling of self-worth. Giving that opportunity for self-help and wholesome wellbeing.

    Moreover, Youth and Sports clubs and the likes, are best done as community projects Annis, but successful businesses can eventually donate cash and kind to care homes and or social clubs, as their profits see increase.

    However, over the past number of years there has been little or no businesses opportunities in SVG for small and medium size enterprises, while the business environment remains hostile through a policy of high taxes, political interferences and gross nepotism.

    Opportunities for the youth therefore and the tens of thousands of our unemployed shall continue to remain bleak, while outdated dogma and nepotism remain entrenched here.

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