St. Vincent’s Robust Recovery: Key Insights from IMF Report
The IMF, in its June 3rd Global Outlook report, says, despite severe physical damage from Hurricane Beryl, St. Vincent’s economy continued a robust rebound from multiple shocks, with growth supported by expansion in tourism, recovery in agriculture, strong reconstruction efforts, and large public and private infrastructure investment.
The report stated that SVG’s recovery is stronger than countries in the Eastern Caribbean Currency Union and the tourism- dependent Caribbean.
The Global Outlook report said the island tourism sectors continue to expand, with stay-over arrivals surpassing pre-pandemic levels by 20% in 2024, while cruise and yacht passengers are bouncing back close to pre-pandemic levels.
The outlook remains favourable given the recent and planned increase in airlift and room capacity, which is expected to reach at least 50% above pre-pandemic levels by 2029.
Inflation has eased to 1.2% as of March 2025 and is moderating, though, with upside risks amid trade tensions and elevated global policy uncertainty.
The report stated that formal employment surpassed pre-COVID levels, supported by the expansion of construction, tourism, the government sector and ITC sectors. Workers close to retirement increase their work life, while the financial sector remains stable, well-capitalised and with relatively low non-performing loans.
The current account deficit widened in 2024 due to higher construction-related imports but is expected to narrow steadily as these projects are completed and tourism receipts increase, the report noted.
The IMF stated that SVG’s external reserves held up well amid recent compounded shocks and are expected to continue at adequate levels.
