Grenada is navigating the recovery from the twin shocks of the pandemic and a rise in energy and food prices.
The authorities’ decisive policy response — supported by the policy space that was created from past fiscal prudence — provided space to cushion the impact of these shocks. As the recovery takes hold, the immediate policy priorities are to return to the fiscal rules to preserve credibility and to deepen structural reforms to promote robust, inclusive, and sustainable growth.
Enhancing the fiscal framework and increasing public expenditure efficiency will help create fiscal buffers against future shocks and make space for the country’s development and resilience-building needs. Measures to increase competitiveness, such as promoting gender equality, investing in skills development, and expanding digitalisation, would help boost economic growth.
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