July 2025 primary deficit worse than projected

Grenada’s fiscal landscape for 2025 presents a mixed picture, with both challenges and achievements highlighted in the latest report from the Ministry of Finance. The total Central Government debt at the end of 2024 was estimated at EC$2.2 billion, setting a significant backdrop for the year’s financial management. In July 2025, the government recorded an overall deficit of $27.9 million, which exceeded both the target for 2025 and the actual figures from 2024. However, the cumulative deficit from January to July 2025 stood at $55.1 million, a notable improvement compared to the targeted $99.2 million, though it still fell short of the previous year’s performance due to exceptional revenue inflows from the CCRIF payout and backlogged CBI applications. The primary deficit for July 2025 was $25.2 million, worse than projected, but the seven-month period saw a primary deficit of $33.7 million, outperforming the target by $39.1 million. Debt servicing remained steady, with principal payments totaling $8.5 million and interest payments at $2.7 million for July 2025. Over the January to July period, principal payments amounted to EC$67.3 million, with interest payments reaching EC$17.6 million. The report, available for public review on the Ministry’s website, underscores the complexities of Grenada’s fiscal strategy amid fluctuating revenue streams and debt obligations.