Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

GRENADA

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

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