Grenada On Path Of Economic Growth And Fiscal Improvement

by Amanda Banks, Tax-News.com, London

30 October 2003

Grenada’s Minister of Finance Anthony Boatswain delivered the government’s fourth update of the country’s economic outlook for 2003, which predicts further economic growth to the end of the year and details an improving fiscal situation.

According to the minister, for the first six months of 2003, the economy grew by 2.9 percent largely driven by construction, tourism and telecommunications.

”The economic data indicate that the Grenadian economy has gathered momentum over the past six months. At this stage, the Ministry of Finance is projecting Grenada's economy to grow at 2.5 percent for 2003,” Mr Boatswain told a press conference.

"Consistent with higher levels of economic growth, particularly since the second quarter, the fiscal situation has shown some improvement,” the minister continued.

He added: “For the period ended September 30, 2003, current revenue amounted to $233.5 million while current expenditure totaled $198.2 million resulting in a current account balance of $35.3 million. As a consequence of capital expenditure being $73.1 million, the overall deficit (after grants) was $25.9 million.”

”For the first nine months of this year, actual revenue receipts fell short of projections by $13.6 million or 6 percent. This shortfall is due primarily to lower than expected receipts from non-tax sources such as licenses and dividends,” the Finance Minister said, noting that “of the 8 Member Countries of the ECCU, Grenada registered the best fiscal performance for the first 8 months of 2003.”

The minister also claimed that between 1997 and 2000, Grenada's economy grew at an average 6.5 percent, “the fastest growth in the OECS”, which averaged 3.4 percent growth in the same period.

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