Destinations > Caribbean > Grenada

Grenada Economy

Flag of Grenada
 

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 proceeded quickly, but much work remains. The United States was 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. The hurricanes exacerbated an ongoing exodus out of the rural areas to the country's cities and towns as young Grenadians increasingly chose not to farm. Complete recovery will take years. Most hotels, restaurants, and other businesses have reopened. In anticipation of the April 2007 Cricket World Cup matches held on the island, 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 abroad, particularly in the largely untapped U.S. market. St. George's University, a large American medical and veterinary school with about 3,700 graduate and undergraduate 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. In the spring of 2008, due to dramatic increases in the costs of food and fuel, the government removed the CET from some essential items, including baby formula, yeast, and baking powder.


Information by U.S. Department of State


Grenada Gallery

St. George's St. George's 

There are 2 pictures in our Grenada gallery. Click the thumbnail to enter.




Wired Tourist Articles

Learn More About Akumal Mexico

The more you know about Akumal, Mexico, the more excited you will be when you vacation in this land of paradise. Therefore, in the months or weeks leading up to your journey you should spend a litle time doing research so that you can learn more about Akumal.

« read full article »

Quick Guide To Thailand

Thailand is possibly the most-visited country in south-east Asia. The irresistible combination of fine beaches, ancient monuments and civilisations and renowned cuisine makes a holiday here an absolute must.

« read full article »


Home | Travel Destinations | Travel News | Travel Directory | Volcano Tours | Gallery | Site Index | Contact WiredTourist.com
Follow us on   Follow us on YouTube  YouTube   Follow us on Flickr  Flickr   Follow us on Twitter  Twitter
©2009-2010 WiredTourist.com