2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

GRENADA

GRENADA

Overview The Grenada economy suffered the deepest recession in recorded history as a result of the COVID-19 pandemic. Preliminary estimates indicate that, after seven years of positive growth, the economy contracted at a rate of 11.7 per cent in 2020, which adversely affected socio-economic conditions.

Based on the forecast for a global recovery, increasing availability of vaccines and an unprecedented capital programme, the economy is expected to return to positive growth in 2021. Real Sector Developments The negative impact of the COVID- 19 pandemic was wide spread, affecting most of the major economic sectors during 2020. Value added of the education sector - the single largest contributor to GDP - declined by 1.2 per cent. Other major contractions were recorded in the hotels and restaurants sector (66.4 per cent); manufacturing (20.0 per cent);

Grenada Selected Economic Indicators Annual Percentage Change

0.0 2.0 4.0 6.0 8.0

(8.0) (6.0) (4.0) (2.0)

(14.0) (12.0) (10.0)

2016

2017

2018

2019

2020

Real GDP

Nominal GDP

Consumer Price Index

25