CABINET NOTES: The Financial Secretary and her team also took the opportunity to update Cabinet on current macro-fiscal conditions, outcomes from the recent IMF staff visit (September 8–12), and key milestones for preparation of the 2026 National Budget scheduled for 4th December 2025.

Headline indicators presented to Cabinet show a steady macro environment. The National Bureau of Statistics revised estimate for 2024 real GDP growth is 3.7%, with 2.5% projected for 2025–2026; ECLAC’s outturn for 2024 is 4.3%. Tax revenue for 2025 is projected in the 18.5–19% of GDP range, alongside continued strengthening in the financial sector (bank NPLs below 5% at end-2024; credit unions 6.7% in Q2 2025). The IMF Article IV consultation is being scheduled for January 2026.

Inflationary pressures remain subdued. The Consumer Price Index fell 1.2% year-on-year to April 2025, with notable declines in transport (-16.2%)—driven by a 41.8% drop in UK airfares—and easing in furnishings (-5.5%) and recreation (-5.1%). Core CPI (excluding food and energy) declined 1.9%.

Cabinet also noted sectoral trends for 2024: strongest growth in accommodation & food (+14.2%), transport & storage (+10.1%), public administration/defence/social security (+12.4%), and manufacturing (+6.5%); with contractions in construction/mining (-7.3%) and wholesale/retail (-2.3%).

Key fiscal operations and policy updates included:

• Waiver discipline: the standing Cabinet cap on discretionary waivers at EC$5M per month remains in force.
• Teachers’ reclassification payments: total disbursed EC$5.86M (FY2024 EC$3.74M to 1,236 teachers; FY2025 EC$2.11M to 1,359 teachers).
• 2025 financing plan: EC$55.8M in new money; indicative market rates—T-Bills 3%, 5-year 6%, 7-year 7%.

The Financial Secretary and her team were commended for their hard work.