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2018 Annual Economic and Financial Review
GRENADA
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Eastern Caribbean Central Bank
a rate of growth of 3.2 per cent in 2017. The
closely related sector of real estate, renting
and business activities grew at a rate of
2.2 per cent, slightly below the rate of
2.5 per cent recorded in 2017.
The favourable performance of the hotels and
restaurants, construction and education
sectors provided the catalyst for continued
growth in the transport, storage and
communications sector (6.4 per cent) and the
wholesale and retail trade sector
(10.0 per cent). Those sectors together
accounted for 21.5 per cent of total GDP in
2018, slightly above the 20.9 per cent
contributed in the prior year.
Valued added in the manufacturing sector
accelerated at a pace of 7.0 per cent in 2018,
after registering growth of 2.7 per cent in the
previous year. The sector’s overall
contribution to GDP rose marginally to
3.4 per cent in 2018 from 3.3 per cent in 2017.
There was an increase in the production of all
beverage categories, with the exception of
rum, which declined by 4.5 per cent.
Production of stout, malt and beer rose by
31.7 per cent, 8.6 per cent and 0.1 per cent,
respectively. Soft drinks production grew by
17.1 per cent, as a result of the reintroduction
of an international soft drink brand. Output of
chemicals and paints rose by 8.1 per cent
reflecting increases in the production lines of
oxygen (71.0 per cent), acetylene
(28.5 per cent) and paint (6.5 per cent). With
respect to grain mill and bakery products,
flour production fell by a further
11.3 per cent, associated with challenges on
the export market. More specifically,
regional competition in another OECS country
and the non-implementation of Article 164 of
the Revised Treaty of Chaguaramas has made
it difficult for Grenada’s product to compete
with cheaper flour from the larger Caribbean
countries. Animal feed production registered
an overall increase of 19.2 per cent, as a
31.9 per cent rise in poultry feed was able to
offset the 17.4 per cent decline in wheat bran
production. The volume of toilet paper
produced increased by 14.4 per cent in 2018,
more than twice the growth recorded in the
former year. The positive outturn in the
manufacturing sector along with real estate,
renting and business services contributed to a
3.6 per cent increase in value added in the
electricity and water sector.
The agriculture, livestock and forestry sector
recorded its third consecutive year of
contraction. Value added in the sector
declined by a rate of 3.8 per cent in 2018,