Grenada: 2007 Article IV Consultation—Staff Report

Grenada’s economy has rebounded after the devastating impact of Hurricanes Ivan and Emily, with the recovery centered on reconstruction and 2007 Cricket World Cup preparations. The economic outlook is favorable, as several major tourism investment projects get underway. Inflation has been subdued. Fiscal performance, however, has been much weaker than programmed in 2006−07, owing to capital expenditure overruns. Public debt reached 125 percent of GDP at end−2006, leaving little room for maneuver in the event of exogenous shocks.