SAINT VINCENT AND THE GRENADINES

aint Vincent and the Grenadines’ economic freedom score is 66.3, S making its economy the 59th freest in the 2021 Index. Its overall score has decreased by 0.5 point, primarily because of a decline in trade freedom. Saint Vincent and the Grenadines is ranked 9th among 32 countries in the Americas region, and its overall score is above the WORLD RANK: REGIONAL RANK: regional and world averages. 59 9 The economy of Saint Vincent and the Grenadines has been considered moderately free ever since its first inclusion in the Index in 2009. Eco- ECONOMIC FREEDOM STATUS: nomic freedom could be expanded if protection of property rights was MODERATELY FREE strengthened and the government permitted greater access to financing and more openness to trade. Establishment of a specialized national anticorruption agency would improve government integrity.

IMPACT OF COVID-19: As of December 1, 2020, no deaths had been attributed to the pandemic in Saint Vincent and the Grenadines, but the economy was forecast to contract by 7.0 percent for the year.

ECONOMIC FREEDOM SCORE

66.3 ▼ DOWN 0.5 POINT

0 50 60 70 80 100  REGIONAL AVERAGE WORLD (AMERICAS REGION) 59.5 61.6 AVERAGE

HISTORICAL INDEX SCORE CHANGE (SINCE 2009): +2.0

RECENT FREEDOM TREND QUICK FACTS



POPULATION: UNEMPLOYMENT: 0.1 million 18.9%  67.7 66.8 66.3 65.2 65.8 GDP (PPP): INFLATION (CPI): $1.4 billion 0.9% 0.4% growth in 2019

5-year compound FDI INFLOW:  $113.1 million annual growth 1.4% $12,983 per capita PUBLIC DEBT: 70.5% of GDP 

       2019 data unless otherwise noted. Data compiled as of September 2020

BACKGROUND: Situated in the Windward Islands of the Lesser Antilles, Saint Vincent and the Grenadines gained full independence from the United Kingdom as a parliamentary democracy in 1979. Prime Minister Ralph Gonsalves of the leftist Unity Labour Party has been in office continuously since 2001 and won a fifth mandate as a result of November 2020 elections. He is one of the few Western Hemisphere leaders to maintain support for Nicolás Maduro’s government in Venezuela. Agriculture and tourism employ a significant portion of the workforce. Although the economy remains vulnerable to global price fluctuations and natural disasters, it has grown modestly in recent years as a result of renewed growth in construction and increased tourist arrivals at the country’s new international airport.

354 2021 Index of Economic Freedom WORLD AVERAGE | ONE-YEAR SCORE CHANGE IN PARENTHESES

12 ECONOMIC FREEDOMS | SAINT VINCENT AND THE GRENADINES

RULE OF LAW GOVERNMENT SIZE

(–2.4) (+3.7) (+2.6) (+2.5) (–2.1) (–1.4)

 

 

 

 

 

48.1 66.3 48.7 74.9 71.6 87.6   Property Judicial Government Tax Government Fiscal Rights E ectiveness Integrity Burden Spending Health

Saint Vincent and the Grenadines’ relatively independent The top individual income and corporate tax rates are 30 and efficient judicial system, based on English common law, percent. Other taxes include property and value-added taxes. protects property rights and enforces contracts. Property The overall tax burden equals 26.7 percent of total domestic registration is time-consuming and expensive. In comparison income. Government spending has amounted to 30.8 percent with some of its neighbors, the rule of law remains strong, of total output (GDP) over the past three years, and budget and corruption is not pervasive. However, compliance with deficits have averaged 1.2 percent of GDP. Public debt is anticorruption institutions is usually slow. equivalent to 70.5 percent of GDP. 

REGULATORY EFFICIENCY OPEN MARKETS

(–1.6) (+0.7) (+1.8) (–9.4) (No change) (No change)

 

 

 

 

 

74.2 74.0 82.6 57.8 70.0 40.0   Business Labor Monetary Trade Investment Financial Freedom Freedom Freedom Freedom Freedom Freedom

Saint Vincent and the Grenadines’ business freedom has Saint Vincent and the Grenadines has two preferential trade declined in recent years in comparison with the world’s agreements in force. The trade-weighted average tariff rate is more reform-minded countries. In general, however, clearly 13.6 percent, and nontariff barriers further undermine overall defined labor laws are enforced effectively. The non-salary trade freedom. In general, foreign and domestic investors are cost of employing a worker is moderate. According to the treated equally under the law, but the government screens World Bank, subsidies and transfers account for more than 23 foreign investment. Businesses lack adequate access to a percent of the government’s budget. wide variety of financing instruments, and the capital market is underdeveloped.

The Heritage Foundation | heritage.org/Index 355