Grenada

Grenada's economy grew by an estimated 4.5 percent in 2025, driven by robust construction activity. Stayover arrivals declined by nearly 5 percent following an exceptional 2024. Inflation continued to moderate, declining to 0.6 percent in 2025, broadly in line with global commodity price dynamics and supported by temporary hurricane-related tax waivers on selected goods.

The current account deficit narrowed to 18.1 percent of GDP in 2025, reflecting moderation in outflows related to the Citizenship-by-Investment (CBI) program. Remittance inflows increased to an estimated 3.5 percent of GDP, up from 3.3 percent in 2024, further supporting the current account. Poverty is estimated to have declined to 17.9 percent in 2025, from 19.3 percent in 2023.

The fiscal position shifted from a surplus of 6.7 percent of GDP in 2024 to a deficit of 7.0 percent of GDP in 2025, reflecting both a normalization of CBI receipts and higher capital expenditure related to post-Beryl reconstruction and other key investment projects. The prompt deployment of post-disaster funds – including payments from the Caribbean Catastrophe Risk Insurance Facility (CCRIF) and World Bank’s Catastrophe Drawdown Option demonstrated the effectiveness of Grenada’s multi-layered financial resilience framework. External and total public debt continued to decline, reflecting the limited impact of Hurricane Beryl on Grenada’s debt dynamics.

Growth is expected to reach 3.1 percent in 2026, driven by construction investment, including the launch of Project Polaris, a five-year, US$250 million hospital project set to begin in 2026. Inflation is projected to rise to 2.1 percent in 2026 due to higher global oil prices. Poverty is expected to continue its downward trend over the medium term. Risks are tilted to the downside, including economic slowdowns in key tourist-origin countries, higher oil prices, disruptions to CBI and FDI inflows, natural disasters, and delays in large investment projects.

Grenada also invests in digital governance. The Digital Government for Resilience Project is developing secure online services, single sign‑on authentication and digitising civil registries. These reforms reduce transaction times, improve efficiency and ensure records are preserved during disasters. The project pays special attention to gender inclusion and aims to make digital services accessible to women and youth.

The GRADE assessment of Hurricane Beryl’s damages (US$218 million) underscores the need for climate‑resilient housing and infrastructure. Grenada is working with partners to build resilience through the Disaster Vulnerability Reduction Project and other programs.

*Last Updated: February 10, 2026

Under this umbrella, support to Grenada prioritizes fiscal and climate resilience and the transition to a sustainable blue and digital economy. Regional programs—like OECS Data for Decision-Making and Skills & Innovation—reinforce better statistics, digital connectivity, and workforce readiness, while earlier engagement helped establish energy regulation to lower costs and improve sector performance.

The WBG will continue to work with regional institutions and leverage IFC/MIGA to mobilize private capital and de-risk priority investments—complementing public programs and advancing resilient, inclusive growth.

*Last Updated: February 10, 2026