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The Economy

Economy

Grenada’s economy is relatively diversified, with several sectors making tangible contributions to GDP annually. In the past, agriculture was the most dominant sector and the main foreign exchange earner for the country. Though the sector has lost its traditional economic dominance, it is a major pillar in the rural economy and forms the largest portion of Grenada’s goods exports.  Since the mid-nineties however, the economy has shifted to being more service based, with tourism, construction, transport and private education being the leading contributors to GDP.  These four sectors combined accounted for 50.1 percent of GDP in 2017. The country's principal export crops are the spices, nutmeg and mace, from which it gets its reputation as “the spice island.” Other crops for export include cocoa, sour sop, citrus fruits, cloves, and cinnamon. Grenada also exports large amounts of fish, specifically, yellow-fin tuna, to the United States and Europe. Manufacturing industries in Grenada operate mostly on a small scale, including the production of beverages, flour and other foodstuffs, textiles and animal feed. Notwithstanding the relatively small scale of manufacturing, Grenada is becoming known for its organic chocolate, which is growing in popularity worldwide. In 2017, Grenada was bestowed the title of “the Caribbean’s Capital of Chocolate” by the prestigious Caribbean Journal Magazine.

External shocks, including the passage of Hurricanes Ivan (2004) and Emily (2005) and the global financial crisis (2007-2008), severely affected Grenada’s economy. Real GDP (at Market Prices) declined at an annual average rate of 0.6 percent during the period 2006-2013. The country’s fiscal position was weak and public debt reached 109 percent of GDP. Grenada entered a three-year IMF-supported Home-Grown Structural Adjustment Programme in 2014 which it successfully completed. Public Finance strengthened, debt was put on a more sustainable path and unemployment fell in tandem with increased economic activity. As at the end of 2017, the Public Debt-to-GDP ratio stood at 68.9 percent while unemployment fell to 23.6 percent. Real GDP growth averaged 5.0 percent from 2013-2017 mainly driven by the Construction, Education and Tourism sectors. Economic growth is projected to remain strong over the medium term.

As part of the Home-Grown Structural Adjustment Programme, expansive legislative reforms were completed in areas such as; tax administration, investment incentives, public finance management, public debt management, and fiscal responsibility.  Grenada was the first independent country in the Eastern Caribbean and the second in CARICOM to introduce fiscal responsibility legislation.

Check Ministry Of Finance, Planning, Economy, & Physical Development for regular economic updates.

GDP: $1.801 billion

2018 est.

Labor force: 56,000

2017 Figures

Stock of money: EC$625.1 million

31 December 2017 figures

Exports: EC$1692.8 million

Goods and Services Exports 2017 figures

GDP (purchasing power parity):
$1.801 billion (2018 est.) 
$1.701 billion (2017) 
$1.606 billion (2016) 
Note: Data is in 2018 International Dollars (Source: IMF)

GDP (official exchange rate): 
US$ 1.127 billion

GDP - Real Growth rate: 
5.1% (2017) 
3.7% (2016)
6.4% (2015)

GDP - per capita (nominal): 
US$ 10,075 (2017 est.) 
US$ 9,567 (2016 est.) 
US$ 9,056 (2015 est.) 

GDP - composition by sector: 
Agriculture & Fishing: 6.1% 
Industry: 12.7% 
Services: 81.3% (2017)

Labor force: 
56,000 (2017)

Labor force - by occupation: 
Agriculture: 10.6% 
Industry: 5.7% 
Services: 83.7% (2017 est.)

Unemployment rate: 
23.6% (2017)

 

Public Finance: 
Total Revenues and Grants: $778.1 million (2017)
Total Expenditures: $686.5 million (2017)
Tax Revenue as a percentage of GDP: 21.7% (2017)
Total Expenditure as a percentage of GDP: 22.8% (2017)

Inflation rate (consumer prices, period average): 
0.9% (2017 est.)

Central bank discount rate: 
6.5% (31 December 2017)

Commercial bank interest rates: 
Prime lending: 10.0% (31 December 2017)
Minimum savings deposit: 2.0% (31 December 2017)

Stock of money: 
EC$625.1 million (31 December 2017)

Stock of quasi money: 
EC$1,611.2 million (31 December 2017)

Stock of domestic credit: 
EC$1,206.8 million (31 December 2017)

Agriculture - products: 
Nutmeg, Cocoa, Banana, Mace, Citrus, Avocados, Root Crops, Mango, Golden Apple, Corn, Vegetables

Industries: 
Food and Beverages, Textiles, Light assembly operations, Tourism, Construction

Electricity - production: 
221.7 million kWh (2017 est.)

Electricity - consumption: 
198.9 million kWh (2017 est.)

Electricity - exports: 
0 kWh (2017 est.)

Electricity - imports: 
0 kWh (2017 est.)

Current account balance: 
-EC $91.5 million (2016 est.)

Goods and Services Exports: 
EC$ 1692.8 million (2017)
As a percent of GDP: 56.3%

Exports - commodities: 
Nutmeg, Cocoa, Mace, Fruits and Vegetables, Fish, Flour, Animal Feed, Chocolate, Clothing

Goods and Services Imports: 
EC$ 1689.8 million  (2017)
As a percent of GDP: 56.2%

Imports - commodities: 
Food, Fuel, Manufactured Goods, Machinery, Chemicals

Main Trading Partners:
USA, UK, European Union, Canada, Caribbean (especially Trinidad and Tobago)

Debt - external: 
EC$ 1401.3 million (2017)
As a percent of GDP: 46.6%

Exchange rates: 
Fixed at 2.7 East Caribbean Dollars (ECD) per US dollar since 1976