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.
Top Sectors in Grenada
Tourism in Grenada
Tourism The text emphasizes tourism as the leading sector, contributing the most foreign currency earnings to Grenada. Beautiful beaches and natural attractions make tourism the lifeblood of the economy.
Agriculture in Grenada
Grenada still has a significant agricultural sector, particularly known for being the world's second-largest producer of nutmeg and mace. Cocoa, citrus fruits, bananas, and other crops are also exported.
Manufacturing in Grenada
Manufacturing is present in Grenada, but on a smaller scale. Production focuses on food and beverages, textiles, and assembling electronic components for export.
18 Nov 2024
03 Dec 2024
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