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2018 Annual Economic and Financial Review
GRENADA
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Eastern Caribbean Central Bank
(28.9 per cent), fish (27.4 per cent) and fruits
and vegetables (0.3 per cent) while receipts
for nutmeg fell by 12.7 per cent. The receipts
from manufactured exports rose by
10.3 per cent ($3.4m), attributed mainly to
higher earnings from animal feed
(18.0 per cent), other manufactured products
(55.1 per cent). Meanwhile, receipts from
flour exports contracted by 14.2 per cent.
Travel receipts are estimated to have risen by
10.1 per cent to $437.9m, an acceleration
from the rate of growth of 6.8 per cent
recorded in 2017. This development mirrored
the significant growth in both stay-over
visitors (10.0 per cent) and cruise ship
passengers (14.5 per cent). Commercial
banks’ transactions resulted in a net outflow of
$164.3m in short-term capital, compared with
one of $67.9m during 2017. External inflows
to the central government rose by $67.2m
per cent to $112.7m, owing to the receipt of
loan funds from the World Bank at very
concessional terms and the Caribbean
Development Bank. Meanwhile, external
outflows rose further to $96.6m from $90.3m
in 2017, as the government continued its
efforts to restructure and repay outstanding
debts. Consequently, the central government
recorded a net inflow position of $16.1m from
a net amortization position of $44.8m in 2017.
Outlook
Economic activity in Grenada is expected to
remain strong in 2019, increasing at a
similar rate as in 2018. Growth will be
driven by developments in the construction,
hotels and restaurants, and education
sectors
. The construction sector is expected to
maintain its robust momentum as works
continue on some private sector tourism
related projects as well as public sector
projects. In the public sector, new projects
expected to come on stream during the year
include the Climate Resilient Water Sector
Project, rehabilitation of the Maurice Bishop
International Airport, Retrofitting of the
Hillsborough Heath Center and the Princess
Royal Hospital in Carriacou, among others.
The tourism industry will be buoyed by
intensified marketing; the rehabilitation of
existing room stock and the construction of
new room stock; and increased airlift. The
education sector is also expected to expand in
2019, although at a moderate pace. Positive
value added is also expected in the
manufacturing sector as the reintroduction of
a soft drink brand strengthens output.
However, challenges persist in the agricultural
sector, weighing down its contribution to
growth. Consumer price inflation is expected