June 2020 Economic and Financial Review

June 2020 Economic and Financial Review

GRENADA

contrast, production of toilet paper increased

by 13.7 per cent.

Influenced by lower global oil prices, the

Grenada Visitor Arrivals

Thousands

250.0

Consumer Price Index continued on a

200.0

downward trend in the first half of 2020,

150.0

falling by 1.3 per cent, one percentage

100.0

point above the figure reported in the first

50.0

0.0

half of 2019. The increase in the major sub-

18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

Stay-overs Cruise Ship Passengers

Yacht Passengers Excursionists

index of food and non-alcoholic beverages

(0.3 per cent) was insufficient to offset the

Value added in the construction sector is

declines in the other major sub-indices of

estimated to have fallen based on data

transport (6.0 per cent) and housing,

received on the main indicators. Local

utilities, gas and fuels (0.9 per cent).

production of sands and stones, major

construction inputs, fell by 2.7 per cent and

Grenada Consumer Price Index Percentage Change

24.0 per cent, respectively. Additionally,

%

1.0

the volume of imported construction

0.5

materials fell by 2.0 per cent.

0.0

-0.5

-1.0

In the absence of data on sugar cane

-1.5

18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

All Items Food & Non-Alchoholic Beverages Energy

production, activity in the agricultural sector

Note: Energy includes Housing, Utilities, Gas & Fuels

is estimated to have declined due to lower

production of major crops such as bananas

Fiscal Developments

(44.6 per cent), cocoa (15.0 per cent),

For the first time since the enactment of

nutmeg (37.2 per cent) and other crops

the Fiscal Responsibility Framework

including

fruits

and

vegetables

(2015), the escape clause (Section 10 (1))

(12.4 per cent). Manufacturing production

was triggered due to the anticipation that

exhibited a similar downward trend, with

the fiscal targets will be breached because

lower outputs for beer (33.2 per cent), soft

of the impact Covid-19 pandemic on fiscal

drinks (41.8 per cent), flour (23.6 per cent)

revenue. As a result of lower tax revenue,

and poultry feed (30.6 per cent). In

30