According to businesscarriers, the economy of Grenada is based on the service sector and agriculture, which are also the main sources of foreign exchange earnings. The share of agriculture in GDP is 7.5%, industry – 8.5%, construction – 8.5%, energy and water supply – 5.8%, transport and communications – 23.8%, other services – 46% (2002 ). Employment structure: 62% of the labor force is employed in the service sector, 24% in agriculture, 14% in industry, with a relatively high unemployment rate of approx. 12%. Inflation is within 3% per year. In absolute terms, the volume of GDP in current prices in 2002 amounted to 414 million dollars, or 4.1 thousand dollars per capita. As a result of a favorable conjuncture in the 2nd half. 1990s Grenada’s economy developed at a high pace – an average of more than 5% per year (a little less than 5% was GDP growth per capita). At the same time, the economic model focused on the sphere of international services, in the conditions of a small country and the narrowness of the domestic market, shows obvious failures when the market conditions change or in case of force majeure (for example, the negative impact of terrorist attacks in the United States in 2001 on the tourism business of Grenada or a hurricane Lily in September 2002, causing damage to Grenada in the amount of approximately 2% of GDP). A decrease in economic growth in the centers of the world economy by 1% leads to a reduction in the growth rate of Grenada’s GDP by 1.5%. In the context of fluctuations in world economic conditions, in 2001 there was a decrease in GDP by 3.4%, for the first time since 1993, or in terms of per capita – 2.9%, in 2002 – 1.5 and 1.2%, respectively (in 2003, the GDP growth of 1.0%, and in terms of per capita – 1.3%). At the same time, in 2002, the current account deficit increased to 25% of GDP compared to 18% of GDP in 2001, and public sector debt increased from 85% of GDP to more than 100% of GDP in 2002. Ultimately, this resulted in a weakening of the political positions of the ruling NPP. Grenada’s offshore financial sector was also affected by the change in activity, peaking in 2000 (approximately 1% of GDP in terms of transaction volume) and subsequently reduced to a negligible share as a result of more stringent international regulations. The industry of Grenada is represented by small enterprises for the processing of agricultural raw materials, the assembly of electronic components, the manufacture of garments and furniture. Electricity production is 110 million kWh (2000). The tourism industry in Grenada is also experiencing serious fluctuations depending on market fluctuations: if in 1998 the number of foreign tourists (mainly from the USA, Great Britain, Canada, Caribbean countries) who visited Grenada was 392 thousand, then in 2001 it was only 277.6 thousand. Respectively, revenues from tourism are also declining – in 2000 they amounted to 92.6 million dollars, while in 2001 – 83.5 million and in 2002 – 84.5 million dollars. Grenada’s agriculture specializes in the production of spices. It is no coincidence that Grenada is sometimes called the “island of spices”. In terms of nutmeg production (2.5 thousand tons per year), Grenada ranks second in the world after Indonesia. Cocoa beans, bananas, citrus fruits, and sugar cane are also grown. Exports of Grenada in 2002 amounted to 64.3 million dollars, and imports – 209 million. Main exports: nutmeg, electronic components, flowers, fish, cocoa, bananas. Imports are dominated by machinery and equipment, foodstuffs, fuel, chemicals. The main trading partners of Grenada are the USA, the EU, the countries of the Caribbean Community, Canada.
In economic policy, Grenada seeks to reduce the role of the public sector in economic activity and increase its effectiveness through the Public Sector Reform Commission, supported by the United Kingdom. Within the Caribbean Community, Grenada supports the goal of a single market and a single economy. Grenada is also a member of the Eastern Caribbean Monetary Union, in which the Eastern Caribbean Central Bank acts as the central bank. The main goal of this bank is to maintain a fixed exchange rate of the East Caribbean dollar against the US dollar (2.7:1 since 1976). In the socio-economic policy, Grenada strives to ensure the social balance of the chosen development model, since the country does not rank high in the world in terms of the human development index (93rd). There are no railways in Grenada, the length of roads is approx. 1 thousand km (of which 61.3% are paved). The international airport in St. George’s, the construction of which was at one time the subject of a conflict in relations between the United States and Cuba, is the main “air gate” to the country for foreign tourists (another airport is on the island of Carriacou). The number of telephone lines is approximately 27 thousand, and the number of mobile phones is approx. 1 thousand The number of telephone lines is approximately 27 thousand, and the number of mobile phones is approx. 1 thousand The number of telephone lines is approximately 27 thousand, and the number of mobile phones is approx. 1 thousand.