Grenada 

Grenada country policy

Policy established 28 May 2007

• The country ceiling is 80 mln euro
• Early warning signal 30 mln euro
• - of which was used as at 2011-08-31 1 mln euro
• Public buyers: ORIO facility
• Private buyers: SIF facility

Country class: 6

Restrictions

• Special conditions, consult your accountmanager

Grenada country facts

Atradius DSB Economic Research
Country Report last updated :  3 February 2008 
Country :  GRENADA  

Political Situation
Stable

Head of state
QEII, represented by governor-general Daniel Williams.

Form of government
Government of the centre-right New National Party. 
 
Internal Economic Situation
Erratic Performance

General situation
Adverse shocks badly hit Grenada: NY 11/9/2001 and natural disasters. Hurricane Ivan devastated the domestic economy in 2004: 90% of buildings were damaged or destroyed, the agricultural sector was decimated (nutmeg, cocoa and banana crops wiped out) and tourism badly hit with several hotel complexes to close for months. Reconstruction costs amounted to $850 mln, double the 2003-GDP. From 2005 strong recovery as a result of repair works and investments for the Cricket World Cup: GDP-growth of 5% in 2007. Before Ivan struck Grenada’s economy, diversification has taken place from traditional agricultural sectors to more service-orientated (offshore finance, IT) and tourist-related activities. Stable rate of inflation, at 2.5% end 2007.
 
External Economic Situation
Weak Liquidity And Solvency

Main sources of foreign exchange
Tourism (40%), spices, light industrial products, services.

Main foreign markets
USA (46%), EU (26%), Latin America (22%).

Main expenses of foreign exchange
Construction material, consumer goods.

 
Balance of payments 
Recovered tourism and workers’ transfers (> 20% GDP) have not compensated for the imports of reconstruction materials and less exports as a result of loss of productive sectors (esp. bananas and cacao), widening the current account since 2004. These deficits are partly covered by FDI and grants.