The International Monetary Fund (IMF) is forecasting positive economic growth for St. Vincent and the Grenadines in the current fiscal year, largely due to positive trends in the tourism sector and an increase in construction activities. These sectors are expected to play pivotal roles in the countries’ recovery efforts as they rebuild from the widespread damage caused by Hurricane Beryl.
Hurricane Beryl, which developed rapidly from a tropical storm, caused loss of life and extensive damage to homes and public infrastructure, prompting St. Vincent and the Grenadines to highlight the severe impacts of climate change and the urgent need for rebuilding.
In St. Vincent and the Grenadines, preliminary assessments indicate losses amounting to 20-25% of GDP, predominantly in southern Grenadines. Authorities are using their financial buffers and receiving international support to finance post-disaster relief and reconstruction efforts.
Regional leaders, including St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves, have criticized developed nations for their high emissions and lack of commitment to a loss and damage fund, which is crucial for aiding territories and countries disproportionately affected by climate change. Low- and middle-income countries face challenges in addressing climate vulnerabilities, often borrowing at unfavorable terms, making it difficult to finance necessary investments in education, healthcare, and resilient infrastructure.
The IMF is expected to provide a more detailed update on the economic for St. Vincent and the Grenadines during its upcoming World Economic Outlook and Regional Economic Outlook.
