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2018 Annual Economic and Financial Review
GRENADA
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Eastern Caribbean Central Bank
Real Sector Developments
Supported by a stable global economic
environment, most economic sectors in
Grenada expanded in 2018, according to
preliminary estimates.
The construction sector continued to be an
impetus for growth. Value added in the sector
is estimated at 15.0 per cent, a deceleration
from the rate of growth of 29.0 per cent in
2017. Nevertheless, the sector’s contribution
to overall GDP grew marginally to
10.0 per cent, compared to 9.3 per cent in
2017. The sector was bolstered by continued
construction activity from a number of private
sector projects as well as the execution of
public sector investment projects. Key private
sector projects under construction in 2018
included the Point at Petite Calivigny Resort,
Mount Cinnamon, the Kimpton Kawana Bay
Grenada Resort, St George’s University
(SGU) Expansion Project and the completion
of the first phase of the Silver Sands Resort
Development. With respect to public sector
activity, construction work focused on the
completion of phase one of the Parliament
Building, the Gouyavee Bridge, Lance
Bridge, and restoration and maintenance of
government buildings. Notwithstanding, the
increase in construction, the mining and
quarrying sector contracted by 12.5 per cent
in 2018, after increasing by 5.5 per cent in
2017. This was mainly due to a decline in the
production of sand as a result of quality
challenges, which hindered its usage in major
construction projects.
The hotels and restaurants sector, a proxy for
the tourism industry, is estimated to have
increased by 7.8 per cent in 2018, a faster
pace than the 5.1 per cent realized in 2017.
The sector’s contribution to total GDP rose
slightly to 6.2 per cent from 6.1 per cent in
2017. Total arrivals to Grenada advanced by
12.8 per cent to 528,637, the highest number
of visitors recorded over the last five years due
to developments in both the cruise and stay
over categories of visitors. Activity in the
cruise sub-sector was robust as passenger
arrivals increased by 14.5 per cent to 342,826,