In a landmark parliamentary address on Monday, Prime Minister Godwin Friday delivered a comprehensive assessment of St. Vincent and the Grenadines’ economic landscape, revealing the substantial fiscal challenges inherited from his predecessors. The newly elected leader, who also serves as Finance Minister, presented his inaugural budget against the backdrop of what he characterized as a “dismal” economic legacy left by the Ralph Gonsalves administration.
The Prime Minister disclosed that the nation’s public debt has reached EC$3.5 billion, representing 110.3% of GDP, with nearly 40 cents of every revenue dollar allocated to debt servicing. This sobering fiscal reality comes after Vincentians ended the Unity Labour Party’s 25-year governance through November’s electoral process, resulting in a decisive 14-1 victory for Friday’s New Democratic Party (NDP).
Friday contextualized the current economic challenges within historical parameters, noting that only five finance ministers have shaped the nation’s fiscal trajectory since constitutional independence in 1979. He emphasized that the NDP’s return to fiscal leadership after two decades represents both a profound responsibility and an opportunity to implement proven economic strategies.
The Prime Minister drew parallels between current circumstances and the situation faced by former NDP leader Sir James Mitchell in 1984, when the party previously inherited strained public finances. Friday outlined a comprehensive strategy centered on prudent fiscal conservatism, strategic tax reform, and decisive debt restructuring measures designed to restore investor confidence and stabilize the national budget without triggering social disruption.
Despite acknowledging external challenges including global economic uncertainties, shifting immigration policies in key diaspora markets, and the lingering impacts of natural disasters, Friday expressed confidence in his government’s approach. He highlighted promising tourism sector performance, with stay-over visitors exceeding 100,000 for the first time in 2024 and continuing growth through 2025, supported by expanded air connectivity through five new airline partnerships.
The Prime Minister concluded by affirming his administration’s commitment to establishing St. Vincent and the Grenadines as a premier travel destination while building economic resilience against external shocks through disciplined fiscal management and strategic diversification.