Economy of Grenada
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CARICOM | |
Statistics | |
---|---|
GDP | |
GDP growth |
|
GDP per capita | |
GDP by sector | services: 69% (2008 est.) |
0.806% (2018)[1] | |
Population below poverty line | 38% (2008 est.) [3] |
Labour force | 59,900 (2013 est.) |
Labour force by occupation | agriculture 11%, industry 20%, services 69% (2008 est.) |
Unemployment | 33.5% (2008 est.) |
Main industries | nutmeg, bananas, cocoa, fruit and vegetables, clothing, mace |
External | |
Exports | $43.8 million (2015 est.) |
Export goods | mace |
Main export partners |
|
Imports | $310.4 million (2015 est.) |
Import goods | food, manufactured goods, machinery, chemicals, fuel |
Main import partners |
|
Public finances | |
Standard & Poor's)[8] | |
All values, unless otherwise stated, are in US dollars |
The
Economic growth picked up in the late 1990s following slow growth and domestic
Although reconstruction has proceeded quickly with significant aid from the international community, tourism and agricultural activities remain weak and nearly offset the stimulus from the reconstruction boom. The country is still facing the difficult task of reconstruction and recovery, while public debt is unsustainable and the government faces large financing gaps. In the years ahead, reinvigorating growth will be a high priority, and continued efforts are needed to address vulnerabilities.
Overview
The economy of Grenada is small, and tourism is its largest
Economic Performance
After experiencing GDP growth averaging nearly six percent a year in the late 1990s, economic growth declined considerably after 2001 as a result of a decline in the tourism industry following the September 11, 2001, terrorist attacks, and damages caused by several hurricanes.
The economy of Grenada was brought to a near standstill in September 2004 by Hurricane Ivan, which damaged or destroyed 90 percent of the country's buildings, including some tourist facilities. On July 2005, Hurricane Emily struck Grenada who was still recovering from the impact of Hurricane Ivan. Besides the negative impacts to the tourism industry, the two devastating hurricanes destroyed or significantly damaged a large percentage of Grenada's tree crops, which may take years to recover.
As the damage of Hurricane Ivan to the economy exceeded 200 percent of GDP, economic growth registered a negative growth of three percent in 2004, compared with a positive growth rate of 5.8 percent in 2003. Although signs of recovery have been seen in Grenada after the damage inflicted by Hurricanes Ivan and Emily, economic conditions remain difficult; GDP is projected at a growth rate of only one percent for 2005.
With the absence of sustained growth, the fiscal situation started to deteriorate after 2001, reflecting a continued expansionary policy with a sharp increase in spending on social sectors, the wage bill, and goods and services. As a result, the fiscal deficit rose to 8.5 percent of GDP in 2001 from 3.2 percent in 2000. The fiscal situation remained shaky in 2002, with the deficit widening to 19.2 percent of GDP due to dampened output from Tropical Storm Lili. As the economy began to recover in 2003, the government began to take steps for fiscal consolidation, and the fiscal deficit fell to 4.8 percent of GDP. Progress in fiscal consolidation was impeded in 2004 as the government policy changed abruptly to post-hurricane relief. Meanwhile, government revenues decreased as a result of the impact of the hurricanes on the economy.
While economic growth has declined since 2001 due to adverse shocks, including a slowdown in the global economy and natural disasters, fiscal policy became more expansionary when privatization receipts declined. As a result, public debt has increased sharply to over 100 percent of GDP since 2002; it remained as high as near 130 percent of GDP in 2004.
Grenada is a member of the Eastern Caribbean Central Bank (ECCB), which manages monetary policy and issues a common currency for all the member countries. Inflation has remained low and stable within the framework of the currency board arrangement, with inflation averaging at two percent over the past 15 years.
Balance of Payments
Grenada's current account balance has remained in large deficit due to its heavy dependence on import of most
Regional Situation
In the aftermath of Hurricanes Ivan and Emily, the priority now for Grenada is to continue the recovery process necessary to restore the infrastructure that was devastated by the hurricanes. The international community has disbursed significant amounts of aid, including financial help under the International Monetary Fund's emergency assistance policy for natural disasters and assistance from the World Bank and the Caribbean Development Bank.
In the context of regional economic development, further integration into the Eastern Caribbean regional economy will help enhance Grenada's competitiveness and increase its scale of economy in production, marketing and distribution. The country also launched a citizenship by investment program in 2013.[15]
International Monetary Fund
The nation of Grenada joined the International Monetary Fund (IMF) on August 27, 1975.[16] Since then, Grenada has been under heavy review with the IMF, who have made Grenada eligible for special drawing rights. Special drawing rights (abbreviated SDR) are supplementary foreign exchange reserve assets defined and maintained by the IMF. Based on Grenada's performances, both economically and policy wise, Grenada can be eligible for more SDRs. In the previous years, Grenada and the IMF have been working closely to grow and sustain their economy.[17] [18]
Statistics
GDP - real growth rate: 4.6% (2015 est.)
GDP - per capita: purchasing power parity - $13,100 (2015 est.)
GDP - composition by sector: agriculture: 6.2% industry: 14.3% services: 79.5% (2015 est.)
Population below poverty line: 38% (2008 est.)
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Inflation rate (consumer prices): 1.3% (2015)
Labor force: 59,900 (2013)
Labor force - by occupation: services 69%, agriculture 11%, industry 20% (2008 est.)
Unemployment rate: 33.5% (2013)
Budget: revenues: $191.8 million expenditures: $230.9 million (2012 est)
Industries: food and beverages, textiles, light assembly operations, tourism, construction
Industrial production growth rate: -1% (2015 est.)
Electricity - production: 193 GWh (2012 est.)
Electricity - production by source: fossil fuel: 98.2% hydro: 0% nuclear: 0% other: 1.4% (2012 est.)
Electricity - consumption: 178 GWh (2012 est.)
Electricity - exports: 0 kWh (2013 est.)
Electricity - imports: 0 kWh (2013 est.)
Agriculture - products:
, vegetablesExports: $43.8 million (2015 est.)
Exports - commodities: nutmeg, bananas, cocoa, fruit and vegetables, clothing, mace
Exports - partners: Nigeria 44.7%, St. Lucia 10.8%, Antigua and Barbuda 7.3%, St. Kitts and Nevis 6.6%, Dominica 6.6%, United States 5.8% (2015)
Imports: $310.4 million (2015 est.)
Imports - commodities: food, manufactured goods, machinery, chemicals, fuel
Imports - partners: Trinidad and Tobago 49.6%, United States 16.4% (2015)
Debt - external: $679 million (2013 est.)
Currency: 1
Exchange rates: East Caribbean dollars (EC$) per US$1 – 2.7000 (fixed rate since 1976)
Fiscal year: calendar year
References
- This article incorporates public domain material from The World Factbook. CIA.
- ^ a b c d e "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 22 October 2019.
- )
- CIA World Factbook. 2015. Archived from the originalon June 13, 2007. Retrieved 2016-07-30.
- ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
- ^ "Inequality-adjusted Human Development Index (IHDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
- ^ "Export Partners of Grenada". The Observatory of Economic Complexity. Retrieved 10 February 2024.
- ^ "Import Partners of Grenada". The Observatory of Economic Complexity. Retrieved 10 February 2024.
- ^ "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.
- ^ "CIA World Factbook – Grenada". Retrieved 12 July 2019.
- ^ "Organisation of Eastern Caribbean States". oecs.org. Retrieved 2019-12-11.
- ^ "Grenada | History, Geography, & Points of Interest". Encyclopedia Britannica. Retrieved 2020-06-12.
- ^ "Products exported by Grenada (2017)". Oec - the Observatory of Economic Complexity. Retrieved 2019-12-03.
- ^ "OEC - Grenada (GRD) Exports, Imports, and Trade Partners". oec.world. Retrieved 2019-12-03.
- ^ Elliott, Larry (18 March 2018). "Developing countries at risk from US rate rise, debt charity warns". Retrieved 19 March 2018. Jubilee Debt Campaign study
- ^ "Grenada citizenship by investment". Government of Grenada.
- ^ "Grenada : 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Grenada". IMF. Retrieved 2019-12-03.
- S2CID 143232150.
- ISSN 2353-6845.)
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