Saint Vincent and the Grenadines continues to gradually recover from the economic crisis brought about by dual catastrophic events, the 2020 COVID-19 pandemic and the volcanic eruption in 2021. Real gross domestic product (GDP) is estimated to have grown in 2022, bolstered by improved performances in key sectors, the easing of COVID-19 protocols, and continued public and private sector investments. Inflation rose during the review period, despite the introduction of price mitigating measures. A combination of higher spending, mainly on the capital side, and lower revenues led to a further weakening of fiscal outturns while public debt remained at an elevated level. The merchandise trade deficit widened but the financial system remained stable.
Economic prospects for 2023 have improved, underpinned by key public and private sector investments. Real growth is anticipated over the medium term, though downside risks abound.
