Annual Economic and Financial Review -December 2018

G R E N A D A

Overview

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.

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

______________________________________________________________________________ 56 Eastern Caribbean Central Bank 7 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.