IMF: SVG Economy To Grow By 2.3 percent in 2019

 IMF staff at the conclusion of their recent visit to St Vincent said the growth outlook is positive. 

Staff expects real GDP growth to rebound from 0.7 percent in 2017 to 2 percent in 2018, and further to 2.3 percent in 2019.

This the mission said will be driven by increases in tourist arrivals, tourism-related activities (including investment in hotels and resorts), and related local production.

Beyond 2020, growth would be sustained at around 2.3 percent, assuming steady tourism and investment growth.

This outlook is subject to both external and domestic risks

External risks include weaker-than-expected global growth, tighter global financial conditions, and higher oil prices.

Domestic risks include more severe and frequent natural disasters and the loss of correspondent banking relationships.

There is also upside potential stemming from stronger-than-expected tourist arrivals, investor interest, concessional financing for capital projects, and the successful completion of the geothermal power plant.