Page 32 - RB GRENADA ANNUAL REPORT 2025_ONLINE

32 • Republic Bank (Grenada) Limited 2025 Annual Report • EXECUTIVE REPORTS

Managing Director’s

Discussion and Analysis

NAOMI E. DE ALLIE

Managing Director

Fueling progress through

resilience and innovation

Introduction Consumer prices declined in 2024 from the high levels
Republic Bank (Grenada) Limited was incorporated on experienced in 2023, assisted by Government policies,
October 12, 1979, and is a subsidiary of Republic Financial including the removal of the Value Added Tax on basic food
Holdings Limited (RFHL). The Company is well represented and other essential items. A primary surplus of $432.9 million
in Grenada and provides banking and financial services or 11.3 percent of Gross Domestic Product (GDP), was realised,
through five branches dispersed across the tri-island state. despite extraordinary spending due to Hurricane Beryl. To
Our improved suite of technology platforms continues to support the continued resilient recovery of the Grenadian
enhance delivery of service to customers and efficiency in our economy, the fiscal rules and targets of the Fiscal Resilience
operations. The improved products and services offered have Act were further suspended in 2025 to allow for increased
inherent flexibility and are specifically structured to satisfy the rehabilitation and reconstruction spending.
banking requirements of our many valued customers. Serving
with excellence is the focus. Citizenship By Investment (CBI) revenue declined in the
first half of 2025 to EC$10.5 million, which represented a 74
percent reduction for the same period of 2024. Government
Operating environment revenue also declined by 15.2 percent in the first half of 2025

According to the 2025 budget statement, Grenada recorded to EC$627.7 million from EC$740.3 million in the same period
strong economic performance in 2024, despite the devastating of 2024. The financial sector remained stable, and external
impact of Hurricane Beryl in July 2024, which highlights stability was well anchored in 2024. The financial sector
Grenada’s growing resilience. Tourism remains the main conditions and the external account are expected to improve,
driver of economic growth. Activity in this sector remained further reinforcing macroeconomic stability and growth.
encouraging, notwithstanding a generally slower rate of
growth. The slowdown was the consequence of tourist arrivals Globally, economic growth is projected to remain stable at 3.3
in most destinations having previously returned to (or close percent in 2025 based on the most recent world economic
to), pre-pandemic levels and heightened global economic outlook by the International Monetary Fund (IMF). However,
uncertainty. The sector benefitted from new and ongoing despite the positive outlook, uncertainties exist; fueled
investments in accommodations and other tourism-related largely by ongoing geopolitical tensions and, more recently,
infrastructure. protectionist policies in the United States.