Volcanic Eruption Will Further Set Back St. Vincent

  • The April volcanic eruptions will set back the economy of St. Vincent and the Grenadines by years because it has wiped out much of its agricultural production and the tourism sector continues to struggle due to COVID-19.
  • Fitch Solutions estimates real GDP will contract 20.4% in 2021, with risks to the downside given significant data uncertainty.
  • Rebuilding is likely to take years given the government's strained finances and significant demands on global donors.

(Source: Fitch Solutions)