• Grenada

    Grenada

    Development Challenges
    The economy of Grenada, with a GDP of US$1,4 Bn, depends on tourism, remittances and tourism related Foreign Direct Investment (FDI) . The island was affected by two successive natural disasters and the global financial crisis, which have triggered a recession in 2009 and 2010 due to falling revenues in these sectors and the cost of the reconstruction works . The government is implementing structural reforms to spur economic growth and keep public debt under control without reducing its social programs. This island was recently removed from the OECD´s grey list of tax havens , as a result of financial sector reforms. With a surface of 340 sq kms and a population of around 108,000 , Grenada is considered an upper medium income country with a high human development. It presents a GDP per head of US$ 13,300 in 2011 and is ranked 67th over 187 countries in the UN Human Development Index . The country faces developmental challenges such as:

    • Poverty, suffered by 38% of the population
    • High unemployment, approximately 30%
    • High public debt, 110% of the GDP in 2011
    • Promote good governance
    • Vulnerable to external shocks and natural disasters (including droughts, hurricanes and torrential rains)
    • Diversify the economy
    • Narrow production base and diseconomies of scale including provision of public services
    • Financial system vulnerability

    Key Trade Issues 

    • Cumbersome customs procedures
    • As a CARIFORUM member, further implementation of the Economic Partnership Agreement between this regional group and the EU
    • As part of CARICOM, finalise negotiations for a Free Trade Agreement (FTA) with Canada to replace the Caricom- Canada Trade and Economic Co-operation Agreement
    • Further economic and commercial regional integration within Organisation of Eastern Caribbean States (OECS) and CARICOM

    Government Priorities
    Aimed at recovering the economy from the recent recession, the government priorities are defined in its National Development Strategy. The government is addressing these priorities with wide financial and technical support from the IMF, the World Bank and the Caribbean Development Bank. At the regional level, the Eight Point Programme is the plan of action designed by the Eastern Caribbean Currency Union in response to the financial crisis.
    The most important goals of their national strategy are:

    • Boost the tourism sector
    • Improve the business environment to attract Foreign Direct Investment
    • Reduce capital investments and current expenses in response to worsening economic conditions
    • Assist the most vulnerable segments of the population
    • Reform institutions and improve economic management  

    The elements of the Eight Point Programme are: 

    • Suitably adapted Financial Programmes for each country
    • Fiscal Reform Programmes
    • Debt Management Programmes
    • Public Sector Investment Programmes
    • Social Safety Net Programmes
    • Financial Safety Net Programmes
    • Amalgamation of the Indigenous Commercial Banks
    • Rationalisation, Development and Regulation of the Insurance Sector

    Trade and Tariff Graphs

    Graphs of the country’s export markets, its export performance in a key sector and tariffs exporters of a sample product face.
    Trademap sample Trademap sample: The map uses color codes to illustrate the relative size of different markets in the overall exports of the country shown in pink.
    Trademap sample Trademap sample: The vertical axis shows import values by key importing countries, while the horizontal axis shows export values by the country for the same sector. I.e. the country has gained market share in the case of an importing country at the bottom right of chart and lost market share for countries top left. The size of circles is proportional to market size.
    Market access map sample Market access map sample: The world map shows trade values and tariff levels for a key export product by importing countries. Color codes indicate protection levels. Red circles denote trade volumes.

    Trade and Investment Data

    Detailed data on the country’s export performance, key imports and foreign investment, grouped by product and service categories (HS and BOP).

    Trade Information Sources

    A listing of country specific print and online publications on trade related topics. Includes information from both ITC and external sources.

    Trade Contacts

    The most important trade contacts, including importers’ and exporters’ associations, trade support institutions, trade promotion organizations and institutions providing business development assistance.