Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

GRENADA

Real Sector Developments

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,

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

______________________________________________________________________________ 58 Eastern Caribbean Central Bank