IMF has recently published its article iv consultation report saying, Grenada’s economy is experiencing sustained, fastest growth supported by tourism arrivals with strong financial system, with higher bank liquidity.
“Strong CBI revenues from Grenada citizenship by investment programme, resulted in a large 2023 fiscal surplus of 8 percent of GDP, higher government deposits of 17 percent of GDP, and a decline in the public debt to 75 percent of GDP”, said IMF in its report.
The clearing of the large backlog of CBI applications from the recent surge is projected to result in a large 2024 budget surplus of 9.5 percent of GDP and further accumulation of government deposits.
– IMF Article IV Consultation Report
However, IMF has warned that The recent heightened international scrutiny over CBI programs represents a risk to this important source of income for Grenada.
IMF has asked Grenada to continue focus and commitment to the CBI program integrity and full implementation of Grenada’s related regional commitments will be important to mitigate potential risks to its revenue.
Another recommendation laid out, Clearer recording of CBI flows in the budget and transferring all CBI revenues into the National Transformation Fund (NTF) would bring the government’s CBI resources under a unified framework.
A further progress needed, to facilitate the verification of beneficial ownership, mitigate the misuse of legal persons, updating the National Risk Assessment to include the CBI program, and training of money laundering reporting and compliance officers.
