Economy of Grenada

Economy of Grenada

St. George's
Currency	East Caribbean dollar (XCD)
Trade organisations	CARICOM
Statistics
GDP	$1.185 billion (nominal, 2018)[1] $1.732 billion (PPP, 2018)[1])
GDP growth	4.2% (2018) 3.1% (2019e) −9.6% (2020f) 6.5% (2021f)[2]
GDP per capita	$10,939 (nominal, 2018 est.)[1] $15,996 (PPP, 2018 est.)[1]
GDP by sector	agriculture: 11%; industry: 20%; services: 69% (2008 est.)
Inflation (CPI)	0.806% (2018)[1]
Population below poverty line	38% (2008 est.) [3]
Human Development Index	0.763 high (2018)[4] (78th) N/A IHDI (2018)[5]
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	nutmeg, bananas, cocoa, fruit and vegetables, clothing, mace
Main export partners	United States 29.9%  Saint Vincent and the Grenadines 11.6%  France 6.96%  Germany 5.39%  Trinidad and Tobago 5.32% (2021)[6]
Imports	$310.4 million (2015 est.)
Import goods	food, manufactured goods, machinery, chemicals, fuel
Main import partners	United States 34.6%  Trinidad and Tobago 16.6%  Cayman Islands 8.22% (2021)[7]
Public finances
Government debt	$538 million (2010)
Revenues	$175.3 million (2009 est.)
Expenses	$215.9 million (2009 est.)
Economic aid	$8.3 million (1995)
Credit rating	B− (Domestic) B- (Foreign) BBB- (T&C Assessment) (Standard & Poor's)[8]
All values, unless otherwise stated, are in US dollars.

The economy of Grenada is largely tourism-based, small, and open economy. Over the past two decades, the main thrust of Grenada's economy has shifted from agriculture to services, with tourism serving as the leading foreign currency earning sector. The country's principal export crops are the spices nutmeg and mace (Grenada is the world's second-largest producer of nutmeg after Indonesia). Other crops for export include cocoa, citrus fruits, bananas, cloves, and cinnamon. Manufacturing industries in Grenada operate mostly on a small scale, including production of beverages and other foodstuffs, textiles, and the assembly of electronic components for export.

Economic growth picked up in the late 1990s following slow growth and domestic fiscal adjustment in the early years of the decade. Despite an expansionary fiscal policy, the public debt remained moderate at around 50 percent of GDP as deficits were financed partly by privatization receipts. Since 2001, economic growth has declined. The decline was caused by adverse shocks, such as a slowdown in the global economy and natural disasters. To deal with the shocks, fiscal policy became more expansionary, while privatization receipts declined. As a result, public debt increased sharply to near 110 percent of GDP in 2003. Economic conditions worsened when Hurricane Ivan hit the country in September 2004; progress in fiscal consolidation was impeded as government revenues fell and policy priorities was shifted to post-hurricane relief.

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.