(iWitness News) – The war in the Middle East has worsened the near‑term outlook for both growth and inflation in St. Vincent and the Grenadines, the Washington-based International Monetary Fund (IMF) says, even as it notes that the outlook is subject to downside risks.
Sergei Antoshin, the IMF mission chief for SVG, delivered the outlook during a joint press conference with Prime Minister and Minister of Finance Godwin Friday in Kingstown on Tuesday, at the end of the annual IMF’s 2026 Article IV consultation.
Antoshin said growth in SVG moderated to 3.7% in 2025 as the post‑pandemic rebound faded, although tourism and construction remained strong.
The IMF said it expects growth to decelerate further in 2026-2027 in light of higher oil prices, a weaker global outlook and the normalisation of construction activity, converging to 2.7% over the medium term”.
Inflation, driven by war‑related commodity price shocks, is projected to rise in the near term.
