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2018 Annual Economic and Financial Review
GRENADA
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Eastern Caribbean Central Bank
compared with 19.5 per cent in 2017. Hence,
the sector’s total contribution to GDP dropped
to 4.7 per cent, from 5.1 per cent in 2017.
This outturn can be attributed to a further
slump in the crops sub-sector, the largest
component. Crops value added declined by
4.7 per cent as the output of other crops,
cocoa, nutmeg and bananas fell. Other crops
produced, including fruits and vegetables, fell
by 2.8 per cent to 2.3m pounds, owing in part
to unusually high levels of rainfall. High
levels of moisture associated with heavy
rainfall led to a 19.2 per cent reduction in
cocoa production. Similarly, nutmeg
production contracted by 13.1 per cent after a
rebound of 17.2 in the previous year. This
gave rise to a 12.5 per cent decline in nutmeg
value added. Output in the banana sub-sector
also contracted by 10.0 per cent. The forestry
and livestock sub-sectors both registered
positive growth of 2.1 per cent and
1.2 per cent, respectively. A 44.3 per cent
increase in fish landings led to higher value
added in the fishing sector, which rose by
1.8 per cent, up from 1.0 per cent growth in
2017.
Prices, Wages and Employment
Growth in consumer prices advanced to
1.0 per cent in 2018, from 0.5 per cent in
2017.
The majority of the sub-indices
registered increases with the exception of
alcoholic beverages, tobacco and narcotics;
and recreation and culture, which declined by
1.1 per cent and 0.4 per cent, respectively.
The largest sub-index, housing, utilities, gas
and other fuels, advanced by 1.5 per cent
associated with higher costs for maintenance
and repairs, bedroom furniture, major house
appliances and the price for a 100 pound
cooking gas cylinder. Food and non-alcoholic
beverages registered an increase of
0.7 per cent, reflecting an uptick in prices of
fresh fish, fresh fruits, preserved milk, and all
meats with the exception of chicken. The
transport sub-index rose by 1.7 per cent on
account of higher airfares. Other notable
increases were observed in the sub-indices for
education (6.0 per cent), and health
(3.1 per cent).
Labour market conditions improved during
the period under review. In 2018, the
government continued to honour its agreement
with trade unions. As a result a 3.0 per cent