Grenada receives World Bank support for resilient economy transition
July 16th 2018
In order to support Grenada in strengthening its fiscal resilience and assisting the country in its transition to a blue economy, the World Bank’s Board of Executive Directors approved a US$30 million Development Policy Credit for the transition to becoming a blue economy.
A successful transition to a blue economy means that the people of Grenada would better manage and protect the health of their rich marine resources and ultimately achieve greater growth and prosperity from sound management of the ocean.
The program supported under this Development Policy Credit from the World Bank’s International Development Association (IDA) builds on the success of the government’s reform efforts and policy measures that strengthen fiscal discipline, and help the small Caribbean island to build buffers to better cope with natural disasters or other economic shocks.
Grenada Prime Minister Keith Mitchell said that Grenada “has 70 times more space at sea than we do on land. Our marine and coastal resources have become the main engine of our economy and we are at the frontier of adopting climate smart development policies. This new financing will enable us to transition to a blue economy and we are well on our way towards building a truly resilient and prosperous country”.
Grenada has seen an increase of coastal tourism to GDP from 15 percent in 2005 to 25 percent of GDP in 2015, generating more than 11,000 jobs over the same period. Furthermore, Grenada has also embarked on public sector reforms to improve service delivery and efficiency of public spending to further reduce public debt and the island stands out as one of the few CARICOM countries to have adopted fiscal rules to reduce public debt.