ECONOMY
The economy of Grenada, based primarily upon services (tourism and education) and agricultural production (nutmeg and cocoa), was brought to a near standstill by Hurricane Ivan on September 7, 2004. Thirty-seven people were killed by the hurricane, and approximately 8,000-10,000 left homeless. Hurricane Ivan damaged or destroyed 90% of the buildings on the island, including some tourist facilities. Overall damage totaled as much as 2.5 times annual GDP. Reconstruction has proceeded quickly, but much work remains. The United States has been the leading donor since the hurricane, with an emergency program of about $45 million aimed at repairing and rebuilding schools, health clinics, community centers, and housing; training several thousand Grenadians in construction and other fields; providing grants to private businesses to speed their recovery; and providing a variety of aid to help Grenada diversify its agriculture and tourism sectors.
Despite initial high unemployment in the tourist and other sectors, urban Grenadians have benefited post-hurricane from job opportunities in the surging construction sector. Agricultural workers have not fared as well. Hurricane Ivan destroyed or significantly damaged a large percentage of Grenada's tree crops, and Hurricane Emily further damaged the sector. Complete recovery will take years. However, many hotels, restaurants, and other businesses have reopened. In anticipation of Cricket World Cup matches held on the island in the spring of 2007, many Grenadians renewed their focus on the rebuilding process. Predictions are for an increase in tourism, although Grenada lags behind its neighbors in marketing the island overseas. St. George's University, a large American medical and veterinary school with over 2,000 students, is in full operation.
Grenada
is a member of the Eastern Caribbean Currency Union (ECCU). The
Eastern Caribbean Central Bank (ECCB) issues a common currency
for all members of the ECCU. The ECCB also manages monetary policy,
and regulates and supervises commercial banking activities in
its member countries.
Grenada
is also a member of the Caribbean Community and Common Market
(CARICOM). Most goods can be imported into Grenada under open
general license, but some goods require specific licenses. Goods
that are produced in the Eastern Caribbean receive additional
protection; in May 1991, the CARICOM common external tariff (CET)
was implemented. The CET aims to facilitate economic growth through
intra-regional trade by offering duty-free trade among CARICOM
members and duties on goods imported from outside CARICOM.
Economy (U.S. $)
GDP (2006): $408.1 million.
GDP growth rate (2006): 2.1%.
Per capita GDP (2006): $3,854.
Inflation (2005): 3.0%.
Agriculture: Nutmeg, cocoa, bananas, other fruits, vegetables, mace, and fish.
Services: Tourism and education.
Construction: Housing development and tourism renovations.
Trade (2005): Exports--$39 million (merchandise) and $126 (commercial services). Major markets--European Union (39.4%), United States (23.3%), Saint Lucia (6.3%), Saint Kitts and Nevis (5.2%), and Barbados (4.6%). Imports--$319 million (merchandise) and $93 million (commercial services). Major suppliers--United States (42.6%), Trinidad and Tobago (18.9%), European Union (12.2%), Japan (4.9%), and Barbados (3.3%).
Official exchange rate: EC$2.70 = U.S. $1.
Total debt outstanding and disbursed (2005): $437 million.
