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Article: Grenada
- Article from:
- Oxford Economic Country Briefings
- Article date:
- August 24, 2009
- Author:
CopyrightCopyright Oxford Economic Forecasting Aug 24, 2009. Provided by ProQuest LLC. (Hide copyright information)
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Highlights and Key Issues
* Global slowdown and tight external credit conditions have added downside risk to an already negative 2009 growth outlook. We now forecast a 2.3% drop in GDP this year, with only a subdued recovery in 2010. The fiscal deficit, reduced in 2008, is widening sharply as revenues fall, adding urgency to new VAT and excise tax plans, though the government denies requesting extra IMF assistance.
* The IMF foresees a more modest 0.7% GDP decline, but accepts that progress has been hit by falls in tourist spending, remittances and inward investment, with tourism projects on hold. Funding will continue because of last year's success in cutting the primary fiscal deficit to ...