St. Vincent & the Grenadines Country Statistics

LOCATION

St. Vincent and the Grenadines are in the Lesser Antilles in the Caribbean. The main island, St. Vincent, is 20 miles (32 km) southwest of St. Lucia and 100 miles (160 km) west of Barbados. The Grenadines stretches southward from St. Vincent toward Grenada, which is 85 miles (137 km) south of the main island.

ECONOMY

In December 2016, the country’s tourism sector suffered a major setback, with the closure of the Buccament Bay Resort, due to financial challenges. The resort was the largest hotel on the main island. Due to its economic importance, the government of St. Vincent and the Grenadines sought investors to restore operations of the facility. Almost 8 years later, in 2024, Sandals Resort International opened the doors to a 301 luxurious bedroom hotel at the property that previously housed the Buccament Bay Resort.

The events related to the COVID-19 pandemic caused real GDP to contract by 4.8 percent in 2020. Then was unfortunately followed by the eruption of the La Soufriere volcano in 2021, which impacted the agricultural sector, with effects lingering up to 2023 due to extreme temperatures. This interrupted the country’s post-pandemic recovery. However, the economy recorded real GDP growth of 3.1 percent by 2022.In 2023, the contraction in agriculture was offset by robust gains in tourism and large private and public sector investment, as real GDP growth surged to 5.3 percent. The average growth of the economy between 2021-2025 was 3.6 percent, which exceeded pre-pandemic levels, illustrating the robust economic recovery.

According to the Eastern Caribbean Central Bank (ECCB), the tourism sector, as represented by accommodation and food services, contributed on average, 3.6 percent of GDP over the last five years. Looking at other sectors, the wholesale and retail trade sector contributed 11 percent of GDP, while the transport, storage and telecommunications industry accounted for 9.9 percent. During the same period, the real estate activities sector provided 9.9 percent of GDP. Construction and, financial and insurance services contributed 7 percent and 6.7 percent, respectively.

The growth momentum was marginally subdued in 2025 with real GDP growing at 3.4 percent, down slightly from 4.1 percent in 2024, with a notable decline in construction sector activity by 6 percent. Strong tourism sector activity, supported by increased room stock and airlift capacity, was the main impetus for growth in 2025, with the sector estimated to have expanded by 10.3 percent and contributed 5.6 percent of total GDP. The gains in tourism were mainly provided by a 5.8 percent increase in total visitor arrivals anchored by a 17.4 percent growth in stay-over arrivals, with increased growth from all major source markets. The strongest performances were registered in the US and Caribbean markets, as arrivals from those jurisdictions increased by 38.4 percent and 6.8 percent, respectively. Cruise passenger arrivals expanded by 2.6 percent, while yacht passengers contracted by 3.8 percent during the period. Heightened tourism sector activity provided some stimulus for related sectors, with the transport, storage and telecommunications industry growing by 9 percent, financial and insurance activities expanding by 1.8 percent and real estate activities experiencing a growth of 2 percent. Further gains were experienced in the agriculture sector, which expanded by 2.7 percent, while the manufacturing sector grew by 8 percent.

The fiscal deficit continued to widen given ongoing post-Hurricane Beryl recovery and rebuilding efforts. In 2025, current revenue increased by 8 percent to EC$855.64 million while current expenditure expanded by 10 percent to EC$925.41 million, representing a revenue shortfall of EC$69.77 million, up 40.7 percent. Given the elevated deficits, the debt to GDP ratio crossed the 100 percent threshold, reaching 101.9 percent of GDP in 2025. Financial sector developments were largely positive in 2025, with business credit increasing by 7.4 percent and household lending expanding by 2.1 percent, supported by high levels of system liquidity.

The International Monetrary Fund (IMF) and ECCB have highlighted the economy’s continued vulnerability to external shocks and natural disasters. Rising geopolitical tensions in the Middle East and conflict over the Strait of Hormuz in early 2026 have led to an increase in energy prices. In consideration of these events, the IMF revised global inflation upwards to 4.4 percent for 2026. The economy remains exposed to the risk of higher inflation from imported fuel and food supplies. Higher fuel costs are likely to push airline ticket prices higher and could subdue tourism demand in key source markets. Against this backdrop, the performance of the St. Vincent and the Grenadines economy may be slightly subdued in 2026 but is expected to remain positive over the medium-term.