Grenada, with a population of 125,438, is ranked 173rd in the world, just behind Kiribati. Located in the Caribbean, it covers 340 square kilometers, ranking 178th globally, just below Barbados.
In 2022, Grenada’s economy is positioned with a GDP of $1,215,379,155.67, ranking 177th globally. It follows Comoros, which has a GDP of $1,242,519,407.28. Grenada’s GDP per capita stands at $9,689.08, placing it at the 78th position worldwide.
It is behind Montenegro, which has a GDP per capita of $10,093.44. Despite its relatively lower rankings, Grenada’s economy shows potential for growth and development in the coming years.
What are the economic activities of Grenada?
- Primary activities: 6.8% of GDP.
- Secondary activities: 15.5% of GDP.
- Tertiary activities: 77.7% of GDP.
Primary Sector of Grenada
Grenada’s primary sector, mainly agriculture, thrives due to its tropical climate and rich natural resources. With 23.53% of the land dedicated to farming, the country produces a variety of crops and animal products. The main agricultural products include coconuts, sugarcane, eggs, bananas, vegetables, fruits, plantains, root vegetables, grapefruits, and avocados.
Despite contributing 6.8% to the GDP, agriculture plays a vital role in the economy, providing employment and ensuring food security. The diverse range of products highlights the sector’s importance in sustaining Grenada’s agricultural industry.
Grenada’s diverse geology contributes to its rich natural resources. The primary sector thrives on timber and tropical fruits, driving the economy through exports and supporting livelihoods.
Secondary Sector of Grenada
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials into finished products for consumption. In Grenada, main industrial products include food and beverages, textiles, light assembly operations, construction, education, and call-center operations. These industries play a vital role in the country’s economy by producing goods for domestic and export markets.
Manufactures only account for 36.56% of Grenada’s total exports in 2023, indicating their relatively minor role in driving the country’s export economy.
Tertiary sector of Grenada
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Grenada encompasses a range of services that involve offering knowledge and time to enhance productivity and meet needs. Key activities include healthcare and medical care, education and training, banking and finance, communication and information exchange, tourism and hospitality, and transportation and logistics. These services contribute significantly to the country’s economy by providing intangible goods like expertise and advice to both consumers and businesses.
Specifically, Grenada’s tourism industry is a vital contributor to its economy, with 526,000 annual arrivals representing a significant 4.19 times its population. Top attractions like the picturesque Grand Anse Beach and the vibrant capital St. George’s draw visitors, boosting revenue and employment. Sustainable tourism development is crucial for Grenada’s continued growth.
Another example of tertiary economic activity is the mobile cellular sector, with around 101,000 subscriptions, supporting technological growth. This connectivity fosters innovation, enhances business operations, and promotes digital services.
International Trade of Grenada
Import Activities of Grenada
The import activities of Grenada are of high importance, with imports totaling $608,759,031.29, accounting for 50.09% of the country’s GDP in 2023.
Grenada’s key import partners include the US (37%), Trinidad and Tobago (11%), and Cayman Islands (11%). They mainly import refined petroleum, poultry, plastic products, wheat, and cars from these countries. Additionally, China (5%) and the UK (3%) are also significant import partners for Grenada.
Exports Activities of Grenada
Grenada’s total exports in 2023 amounted to $46,055,094.055, representing 3.79% of its GDP. With a low export-to-GDP ratio, export activities play a relatively minor role in the country’s economy.
Grenada’s export activities focus on nutmeg/cardamom, frozen fruits, fish, and more. Its key partners include the US (33%), Antigua and Barbuda (10%), India (4%), Saint Vincent and the Grenadines (4%), and France (3%).
Grenada economy challenges in 2024
In 2024, Grenada faces challenges with high public debt, vulnerability to hurricanes, and a shrinking economy. Despite its focus on tourism and spice exports, the country struggles to sustain growth amidst global uncertainties. Efforts to promote the blue economy offer hope for a more sustainable future.
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