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1.4. During the first years of the review period, the economy was still recovering from the global financial crisis and back-to-back natural disasters, but despite this, solid growth rates were achieved in both 2015 and 2016, 2.8% and 4.1%, respectively. (...)The economy's recovery from the pandemic was further complicated by the La Soufrière volcano eruption in April 2021; as a result, GDP grew by just 1.4% in 2021, and it remained below its pre-pandemic level. (...)

1.6. The volcano eruption added stress on the country's economic recovery. According to a study by the authorities, economic loss from La Soufrière's eruption was equivalent to more than 18% of GDP in 2020. The eruption affected to a large extent the agricultural sector, almost wiping out all crops and livestock. It also provoked direct damage to infrastructure and buildings; this damage alone was estimated to exceed 26% of GDP (approximately XCD 622 million). Moreover, the damage caused to manufacturing production and construction projects, which were temporarily disrupted by ash accumulation and the interruption of utilities is estimated to have amounted to around 11% of GDP in 2021. However, the authorities estimate that the impact of volcano eruption on the tourism sector was small, partly because it was still suffering from the effects of the pandemic.
[4]Ministry of Finance (2021), La Soufrière Volcanic Eruption Sector Reports: Saint Vincent and the Grenadines, August 2021(...)

1.7. (...) Significant efforts were made to diversify the export base, strengthen human capital, improve the investment climate, and build climate resilience. However, the pandemic and 2021 volcanic eruptions had highlighted Saint Vincent and the Grenadines' significant vulnerability to external shocks and natural disasters. The report notes that the authorities' proactive policy responses, supported by two IMF Rapid Credit Facilities (RCFs) and financing from other international financial institutions, mitigated the socio-economic impact of the shocks and helped contain economic scars. The two RCF disbursements approved were if SDR 11.7 million (100% of quota) in May 2020, to address the COVID-19 pandemic and SDR 8.17 million (69.85% quota) in July 2021, to address the fallout from the volcanic eruptions. The financing helped the Government finance "two fiscal packages to provide critical support to households and firms affected by the shocks and the vulnerable".

2.7. Export-driven sustainable growth remains the main trade policy objective. Saint Vincent and the Grenadines continues to collaborate actively with other OECS and CARICOM states in the formulation of trade and trade-related policies, and their implementation. (...)

2.21. Invest Saint Vincent and the Grenadines was established in August 2009 as the official investment agency. The agency's mandate is to attract FDI to Saint Vincent and the Grenadines directed mainly to seven specific sectors (tourism development, agro-processing, renewable energy, light manufacturing, international financial services, information and telecommunications technology, and creative industries (film, music, and fashion)). Its main mission is to: (i) achieve sustainable economic development through investment promotion and export development; and (ii) be the nation's driver of economic growth through investment promotion and export development.

3.28. Beverages imported in non-returnable bottles or cans are subject to a bottle deposit levy of XCD 0.50 per bottle or can. [42]
[42] Environmental Levy Act, 1991.

3.31. (...) VAT on biodegradable containers and on phosphate-free detergents became zero-rated in 2017 and 2018, respectively.

3.33. Import prohibitions are implemented on grounds of public safety and morals, human life and protection, environment protection, and compliance with international obligations. (...)

3.35. Effective 27 April 2017, the importation of expanded polystyrene food containers (such as disposable plastic plates, spoons, forks, bowls, cups; Styrofoam food boxes, plates, bowls, cups, and egg boxes) is prohibited. [49] (...)
[49] Environmental Health (Expanded Polystyrene Ban) Regulation, 2017 (SR&O (No. 21 of 2017)). (...)

3.38. Import restrictions are applied on goods that have safety concerns to the public (e.g. arms and ammunition, explosives, tear gas, cannabis sativa or other narcotic substances, left-hand-drive vehicles, and chainsaws), endangered species of animals or plants (CITES-protected items), alcoholic beverages, and tobacco products (including exacts and essences).