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Grenada: Economic Outline

Economic Indicators

Grenada's economy was directly affected by the world economic crisis, which caused difficulties for a number of its financial and insurance institutions, also causing a fall in the number of tourists and the FDI flows. After contracting by 7.7%in 2009, the island's GDP growth return to positive in 2010, reaching 0.8%. Slow growth is expected for the coming years.

Grenada’s economy had to deal with the consequences of hurricane Ivan in September 2004, which devastated 90% of the island (in particular the banana and nutmeg plantations which were annihilated), and then hurricane Emily in July 2005. The country, which was the second nutmeg producer, after Indonesia, is not expected to regain its ranking before 2012. In April 2010, the government has signed an three-year agreement with the IMF, as part of the Extended Credit Facility framework, in order to deal with the difficulties caused by the crises. The priority is fiscal consolidation, the consolidation of the banking system, and reducing poverty.

Poverty affects almost 40% of the island's population, extreme poverty 2.5%. A quarter of the workforce is unemployed and almost 70% of the Grenadians emigrated.

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Last Updates: February 2012