Annual Economic and Financial Review -December 2018

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Eastern Caribbean Central Bank

G R E N A D A

Overview

Economic activity in Grenada continued to

be buoyant in 2018. Real GDP is estimated

to have expanded by 4.

8 7

per cent in 2018,

slightly slower than the rate of growth of

5.1 per cent obtained in 2017.

The robust

growth performance was the result of

developments in the construction, hotels and

restaurants, manufacturing and education

sectors. The favourable

outcome in these

sectors, contributed to

positive valued added

in the main ancillary sectors. In contrast,

output in the agricultural sector continued to

decline. The Consumer Price Index increased

In keeping with international standards, the ECCB has updated the terminology used to describe economic activity in

the ECCU. Accordingly, the Bank will now report real change in the economy using real Gross Domestic Product

(GDP) at market prices and not Gross Value Added (GVA) at basic prices as used in previous reports of the Annual

Economic and Financial Review (AEFR). However, GVA will remain applicable for output by sector.

by 1.0 per cent, on an end of period basis.

The central government continued to reap the

benefits of the Home Grown Structural

Adjustment Programme as the highest overall

surplus was recorded since the programme’s

implementation in 2014

The disbursed

outstanding public sector debt contracted

further in 2018. Banking sector developments

were characterized by an acceleration in the

growth of monetary liabilities and net foreign

assets, an increase in liquidity level and a

contraction in domestic credit. The

merchandise trade deficit widened during the

period under review.