By S.Browne. Updated 5:26 p.m., Thursday, April 23, 2026, Atlantic Standard Time (GMT-4).
Opposition Leader Ralph Gonsalves has issued a warning regarding a recent ministerial statement by Prime Minister Godwin Friday following his attendance at meetings of the International Monetary Fund and World Bank in Washington, warning that IMF-related policies could affect jobs, wages, and salaries.
Speaking on his Morning Comrade programme on Star Radio, Gonsalves said his concerns followed the Prime Minister’s statement after returning from the IMF and World Bank spring meetings.
He asserted that Friday intends to institute what he described as a “home-grown” IMF-style stabilisation and growth framework, which he warned could result in strict international economic conditions being applied to the local economy.
Gonsalves claimed the IMF warned that the country’s current debt trajectory is unsustainable and projected that the budget would increase the debt-to-GDP ratio by 19%.
He argued that this framework would effectively allow external financial institutions to influence domestic policy decisions, including reductions in capital spending on public works, which he said would lead to fewer jobs and reduced economic activity.
The Opposition Leader detailed several conditions he believes would follow the arrival of an IMF team, beginning with a reprioritisation of capital expenditure that he said would result in fewer jobs and slower economic activity.
He further cautioned that the plan could include strict austerity measures such as “employment attrition,” where retiring public servants are not replaced, leading to a gradual reduction in the public service.
Gonsalves also alleged that wage and salary controls could be implemented, which he said would eliminate bonuses for nurses and block a 5% salary increase for public sector workers.
Comparing fiscal performance, he noted a current account deficit of $26.6 million under the current administration compared to $7.2 million previously.
He further pointed to a $19 million reduction in capital spending, which he said has contributed to slower construction activity and job losses.
According to Gonsalves, the proposed labour market reforms would place additional pressure on working-class households by limiting employment opportunities and slowing income growth.
“I told the people that if you elect Friday, if you elect the NDP, you’re going to the IMF,” Gonsalves stated, framing his warning as a broader concern about the country’s economic direction.
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This information was sourced from a press release sent to us by the Office of the Leader of the Opposition.
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