Grenada

A three-island State (Grenada, Carriacou and Petite Martinique) with 98 per cent of the population living on the main island which gives it its name, Grenada became independent in 1974.

Agriculture and tourism are the basis of the economy. Traditional agriculture is the main sector for employment and exports earnings. It employs almost one third of the working population and ensures 60 per cent of export earnings.

Tourism is a rapidly growing sector that offers more and more employment opportunities. However, economic growth which amounted to 4-5 per cent on average during 1984-90, has stagnated around 3 per cent since 1991. The country has had to launch macroeconomic adjustment reforms aimed at lowering the public finance deficit.

In recent years, growth in Grenada has teetered under the mounting pressure of deteriorating public finances and worsening agricultural terms of trade.

In 1990, internal and external imbalances widened and external arrears accumulated. Real GDP growth remained low, averaging about 1 per cent per year during 1991 to 1993, as the rapid growth of tourism was offset by declining manufacturing and agricultural output.