(IMF Report 2018) Advancing structural reforms remains key to capitalize on growth opportunities created by the new airport.
Its economic benefit is already visible with the increased number of tourists. For its benefits to reach broader economic sectors beyond tourism, the authorities need to make further efforts to foster private sector activity, by improving the investment environment and strengthening physical and human capital.
More specifically:
To enhance transparency, reduce red tape, and attract investors, tax incentives should be streamlined, discretional tax concessions minimized, and an investment law established.
Invest SVG (the government’s investment promotion agency) should be revamped as a one-stop-shop.
Efforts should continue to improve infrastructure, particularly irrigation, roads, and ports, that are resilient to natural disasters.
Developing a long-term infrastructure plan, in collaboration with key stakeholders, would help prioritize projects consistent with the government’s strategic development goals, solicit donors’ support, and boost investors’ interest.
The government’s focus on improving education is welcome, but more efforts are warranted to reduce labor skill mismatches and unemployment which remains very high.
The effectiveness of the ongoing Technical and Vocational Education and Training program should be periodically reviewed.