Purchasing Power Parity (PPP) in Grenada 2024

The International Monetary Fund (IMF) recorded Grenada's Purchasing Power Parity (PPP) GDP in 2024 as 1.59 units, continuing a downward trend from the previous year. This decline indicates a weakening of Grenada's purchasing power compared to previous periods.

Over the past three years (2022-2024), Grenada's PPP GDP has steadily declined, from 1.62 to 1.61, and finally to 1.59. This contrasts with the previous five years (2017-2021), which showed fluctuations but generally remained around 1.7 units. Grenada's economic growth has contracted, reflected in negative annual GDP growth figures over the past three years.

The unit in the data presented in this article is the result of IMF calculations of the nominal GDP value of Grenada's national currency against the international dollar. In its publication, the IMF states that this calculation is used for the purpose of compiling a composite group of countries. This data is not presented as the primary source for purchasing power parity (PPP) data.

Compared to the average PPP GDP of Grenada over the last three years (approximately 1.61), the 2024 figure shows a significant decrease. Compared to the average of the last five years (approximately 1.67), this decline is even more pronounced. This indicates that Grenada's current economic conditions are worse than in previous years.

The highest PPP GDP value for Grenada was recorded in 2016 at 1.76 units. The lowest value occurred in 2024 at 1.59 units. A significant anomaly in the decline is visible in the period 2022-2024, where a consistent decrease occurred each year. Over the last 10 years, this is the sharpest and most sustained decline.

Regionally, Grenada ranks 8th among Caribbean countries. This ranking has been stagnant since 2019, indicating that Grenada's economic performance is relatively similar to other countries in the region.

IMF projections indicate that Grenada's PPP GDP will continue to decline until 2026, reaching 1.566 units. After that, a slight increase is projected, but it will remain below the current figure. This indicates that Grenada's economic recovery will be slow and will take considerable time. Economic contraction is reflected in the projected negative annual GDP growth until 2026.

Compared to other countries, Grenada, with a PPP GDP of 1.59 units, is among the lowest in the available comparative data. Grenada's ranking in terms of PPP GDP growth is eighth in the Caribbean region, highlighting the need for further efforts to improve the country's economic competitiveness.