Saint Vincent and the Grenadines

Saint Vincent and the Grenadines' economy is estimated to have grown by 3.6 percent in 2025, following the completion of major infrastructure projects. These projects strengthened tourism capacity, with stayover arrivals rising 14 percent in the first three quarters of 2025 relative to the same period in 2024. The sector supports a significant share of employment in accommodation, food services, and retail trade, with high female employment.

Inflation eased to 1.4 percent in 2025, supported by lower utility and transportation costs — supporting continued poverty reduction. Inflation is expected to rise to 2.6 percent in 2026 due to higher global oil prices linked to the conflict in the Middle East, before stabilizing at around 2.1 percent through 2028.

The fiscal deficit narrowed to an estimated 11.9 percent of GDP in 2025, down from 15.6 percent in 2024, as Hurricane Beryl-related reconstruction wound down. However, the deficit is projected to widen again to 18.6 percent of GDP in 2026, driven by capital spending on new investment projects, VAT holidays, an expanded wage bill, and higher social spending.

Public debt is projected to be 116 percent of GDP and to increase gradually to 120.3 percent by 2028. Achieving the debt target of 60 percent by 2035 will require sharp and sustained fiscal consolidation, stronger debt management, and growth-enhancing structural reforms.

As a small island economy, Saint Vincent and the Grenadines is exposed to external market fluctuations, global economic shifts, and the impact of natural disasters. Building resilience will require strengthening the fiscal framework, diversifying the economy, and enhancing disaster preparedness, including extending social assistance to the most vulnerable during times of shock.

The World Bank Group works in Saint Vincent and the Grenadines through the Regional Partnership Framework (RPF) for the Organization of Eastern Caribbean States (OECS), which provides a common strategic approach for the six OECS member countries that are part of the World Bank. The RPF responds to the shared development challenges of small island states, including limited scale, high vulnerability to climate and external shocks, and capacity constraints, while aligning with national and regional development priorities.

The program focuses on strengthening resilience to climate change and other shocks; improving human capital and social inclusion; and enhancing competitiveness for more and better jobs.

In Saint Vincent and the Grenadines, this approach supports priorities such as strengthening disaster preparedness, expanding social protection, advancing the blue economy, and enhancing connectivity. The program combines national projects with regional initiatives to deliver results tailored to the country’s needs as a small island developing state.

*Last Updated: March 12, 2026