Page 29 - RB GRENADA ANNUAL REPORT 2025_ONLINE

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uncertainty, fueled in large part by a significant increase in
For tourism dependent nations, the traditional trade protectionism and ongoing geopolitical tensions. The
seasonal slowdown in tourism from September announcement of widespread tariffs by the United States
through November may place a slight (US) in April 2025, intensified uncertainty and shook global
damper on growth but, activity is expected to financial markets. In advanced economies, real GDP growth
slowed to an estimated 1.5 percent in 2025, following an
accelerate as the normally busy winter season expansion of 1.8 percent in the previous year.
approaches.

International price pressures eased further in 2025, with
varying trends among individual nations. Global inflation is
expected to fall to 4.2 percent from 5.7 percent a year earlier,
due to subdued demand and weaker energy prices. The
Real Gross Domestic Product (GDP) is on track to expand in
impact of tariffs is expected to gradually filter through the US
2025; building on the growth recorded in 2024, despite the
economy, with countries dependent on imports from the US
devastating impact of Hurricane Beryl. The tourism sector
also likely to be affected.
is expected to register weaker growth in 2025, although its
performance is expected to improve in the second half of
The global economy’s 3 percent expansion in 2025 is expected
the year. Grenada continues to invest in renewable energy.
to continue in 2026, with real GDP projected to increase by 3.1
In April 2025, the government announced plans to drill two
percent. Growth among advanced economies is expected to
exploration geothermal wells in 2026. If successful, this could
increase slightly to average 1.6 percent, while emerging and
be hugely transformative for the energy sector and the wider
developing economies are predicted to expand by 4 percent.
economy.
Nevertheless, the global economy faces key downside risks,
Regional economy including the possible failure of the US and China to secure a
trade agreement, which could constrain economic activity in
The Caribbean faced significant challenges in the second
the world’s two largest economies. An acceleration of global
quarter of 2025, including elevated global uncertainty related
inflation could negatively affect growth.
to increased trade protectionism, geopolitical tensions and
policy changes by governments and central banks.

The region is likely to experience moderate but uneven growth
in the second half of 2025, with energy producing nations
expected to outperform tourism dependent economies. 15.49 NET PROFIT ($M)
For tourism dependent nations, the traditional seasonal
slowdown in tourism from September through November
may place a slight damper on growth but, activity is expected
to accelerate as the normally busy winter season approaches.
The level of growth experienced by the tourism economies 1.20 DIVIDEND ($)
during the period will partly hinge on the effectiveness of new
airlift services in boosting winter arrivals.

The global economy 4.10 EARNINGS PER SHARE ($)
Global economic activity decelerated slightly in 2025, with
the International Monetary Fund (IMF) projecting a fall in real
GDP growth to 3 percent from 3.3 percent in 2024. This out-
turn was attained against a backdrop of significant global