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Posted by adminelena on May 31, 2016
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Grenada´s economy grew by 4.6 per cent last year, says the International Monetary Fund (IMF), and warned that the island will have to implement policies to secure lasting success of its home-grown programme and broaden the reach of its benefits.

An IMF delegation visit the island reviewing the three-year US$21 million Extended Credit Facility (ECF) that the island entered into with the Washington-based financial institution in 2014. According to the statement the delegation did after the visit, Grenada has made major strides toward restoring fiscal and external sustainability.

“Economic activity has picked up, debt has been reduced, and the balance of payments position has strengthened. The government has also pushed through important legislative reforms to build a fiscal framework that will lock-in fiscal discipline over the long term.”

The IMF said that activity in 2015 remained robust, fueled by growth in agriculture, tourism and construction.

“The key priorities in 2016 include execution of the budget in line with programme commitments and the new Fiscal Responsibility Act (FRA); focused reforms to ensure prudent and sustainable management of the public sector wage bill; application of the new system to register beneficiaries for social assistance; and follow through on growth-enhancing reforms in the areas of business facilitation and labour legislation.”

The IMF estimates potential growth in Grenada at about 2.5 per cent annually, suggesting that a bigger policy effort is needed to increase output capacity in the country and to foster broader based growth that will raise employment opportunities for Grenada’s jobless.